Looking forward to a vacation? Don’t let travel insurance be an afterthought

Steven Harris, a licensed insurance broker and expert at LowestRates.ca, as shown in this handout photo, says travel insurance can protect travellers from the devastating costs of international health care. THE CANADIAN PRESS/Handout - LowestRates.ca (Mandatory Credit)

You’ve packed your clothes, toothbrush, extra pairs of socks, sunscreen — and anything else you might need during your vacation. Experts recommend adding travel insurance to the list, whether you’re going near or far.

“We all think, ‘Oh, we’re just going to go away, maybe even for a quick trip,’” said Will McAleer, executive director of the Travel Health Insurance Association.

“Sometimes, it’s those quick trips that can result in a significant medical emergency.”

Travel insurance is often an afterthought for many travellers counting down the days to their vacation. But life happens no matter where you are and being prepared for a medical emergency, flight delays or even trip cancellations can help deal with those undesired situations.

Often, it can be the demographic of travellers that strongly affects their decisions about getting a policy, said Steven Harris, a licensed insurance broker and expert at LowestRates.ca.

“If I were to go back to my more youthful self, there was a naiveness (in) not understanding what could occur and what could be the financial consequences to that,” he recalled.

Travel insurance premiums aren’t usually high for 20-something travellers, Harris said, and can save them from the devastating costs of international health care.

The right insurance policy depends on the traveller’s plans including the destination, activities and duration of the trip.

McAleer said there are two main kinds of travel insurance: medical and emergency, and trip cancellation and interruption.

Medical and emergency insurance can cover costs such as an ambulance ride, hospital visit, air ambulance and even commercial repatriation for continued care, he said.

Trip cancellation and interruptions coverage, meanwhile, can save the high costs of trip disruptions due to personal emergencies.

For example, Canadians often go down to Mexico on packaged trips and take chartered flights, McAleer said. If they need to get home mid-trip for an emergency and don’t have coverage, the new flight could cost more.

Canadians often forgo insurance coverage when travelling domestically — partly because they enjoy universal health care benefits across provinces. But that may not be enough in some situations, McAleer said.

Four in 10 Ontarians travelled outside of their home province without travel insurance during their last trip, a CAA South Central Survey, published last week, showed. Almost half of them believed it was unnecessary while 24 per cent were worried about costs.

“Let’s say you’re hiking in the Rockies and something goes wrong, you have an accident,” McAleer said. “Maybe you need to be taken to the nearest hospital by ambulance, or worse, it could be an emergency evacuation helicopter off the mountain to get you to that medical treatment.

“Those types of costs can be significant and are not covered under provincial medical,” he said.

Harris suggested looking into your workplace benefits first and seeing if it’s sufficient.

“Some people will make an assumption that, ‘Oh, I have a work plan or I have travel insurance for my credit card,’” he said. “But you really need to understand those policies and what’s included.”

McAleer said most workplace and credit card travel insurances cover emergency medical coverage, which can be beneficial in both domestic and international travel situations. But they can have limitations.

For example, some insurance policies may not cover injuries from high-risk activities, pregnancy or pre-existing health conditions. Sometimes, it only covers a few days of a trip.

“From time to time, you hear those stories where someone either was too old for (coverage) because there was an age limit on a credit card insurance plan or because they were participating in sports that weren’t covered under an employer-sponsored plan,” McAleer said.

When it comes to quick getaways, Canadians continue to travel south of the border, even as many boycott travel to the United States this year amid U.S. President Donald Trump’s tariffs and annexation comments.

“The United States is the most expensive place on the planet to seek medical care, and as a result, a quick trip over the border (can) lead to financial ruin,” he added.

McAleer said the golden rule of travel insurance is to know your health, know where you’re going and see if the insurance policy will cover it.

“And ultimately, know your rights,” he said.

This report by The Canadian Press was first published July 1, 2025.

Ritika Dubey, The Canadian Press