With more than 75% of Canadians planning domestic vacations this year and the FIFA World Cup expected to drive a surge in cross-border travel, nearly half will head into the summer without travel insurance. Even among those who believe they are covered, many may discover their protection falls short when they need it most.
A TD Insurance survey found that 46% of Canadian travelers are not planning to buy travel insurance this summer. Of those, 29% said they could only cover up to $300 in unexpected travel costs, and 14% said they had nothing saved at all.
Patricia Foley (pictured), associate vice president of delivery excellence for life, health and credit protection insurance at TD Insurance, said those numbers do not go far against the real cost of a travel emergency.
"Trip cancellation claims can be upwards of $2,000 on average," Foley said. "In-patient hospital claims (on average) can go up to $40,000."
She said travel insurance can cost as little as $30, a relatively small expense compared with the potentially significant financial consequences of traveling without coverage.
"Short-term savings do not outweigh the risk of long-term costs and financial impact," she said.
Much of the problem comes down to assumptions. Foley said it is common for travelers to believe they are fully covered through provincial healthcare, employer benefits or a credit card – without checking the limits, duration or exclusions of any of them.
"Provincial healthcare, credit card coverage, employee benefit coverage – they all can have some coverage, but they may not have all of the coverage," she said.
She said pre-existing conditions, high-risk activities and trip duration are among the most common gaps. A traveler who assumes their credit card covers a ski trip, for instance, may find that skiing is specifically excluded.
The blind spot extends to domestic travel. Foley said there is a persistent assumption that provincial healthcare covers Canadians fully anywhere in the country. It does not.
"Domestic doesn't equal covered," she said.
She said prescriptions, ground and air ambulance, and some hospital stays are not covered when a traveler is outside their home province. She noted that traveling from St. John's to Vancouver is actually farther than flying from Toronto to Paris — and the exposure along the way is real.
"Those can add up again to thousands of dollars and well above the $300 that many people have said that they've saved," Foley said.
Matt Hands, VP of insurance at Ratehub.ca, said the domestic gap is well-documented but still widely ignored. He said 75% of Canadians do not buy travel insurance for domestic trips, and even direct experience with problems has not changed the behaviour.
"Around 44% have even said, 'Oh, I had issues, but I still don't purchase’ [insurance]," Hands said. "Which is crazy."
He said specific costs that catch domestic travelers off guard include ambulance rides, paramedical services and emergency dental – none of which are generally covered by provincial health plans outside the home province.
For Canadians heading to the United States this summer – whether for the World Cup or otherwise – the financial stakes are higher. Foley said Canada and the U.S. operate fundamentally different healthcare systems, and provincial coverage does not extend across the border.
“Our provincial healthcare doesn't necessarily cover everything out of province, and coverage is even more limited when we cross the border.”
She said medical costs in the U.S. can reach six figures depending on the severity, and that any Canadian traveling south should have comprehensive coverage in place before departure.
Hands said the cost of that protection is a fraction of what most travelers are spending on the trip itself. "Domestically, we're looking at $50 to $100," he said. "Going to the US for a three-to-five-day trip, maybe $150, a couple hundred bucks."
Foley said the most effective step is to speak with a licensed insurance advisor who can identify gaps and recommend a top-up policy. TD Insurance offers an online tool for credit card holders that shows whether existing coverage is sufficient for a specific trip and flags where it falls short.
"When you budget for your travel, also budget for protection," she said. "So much can happen, and emergency expenses can be high, and with policies starting as low as $30, it makes it easier to include protection in your trip budget.”
