To get or not to get travel insurance, that is the question. As many people start planning their trip, whether during the budgeting phase or as a last-minute decision, the consideration of subscribing to a travel insurance will inevitably pop up.
Some might view it as an unnecessary cost because they are only taking a short trip, they are in good health, they won’t engage in “at-risk activities” or any other excuse they might come up with. Not only is this foolish, but the sole reason for having an insurance is to cover you in case of an unpredictable event. Now that it’s established that one should not travel without a proper travel insurance, how does one make an informed decision with all the questions that it raises?
Here are the Most Common Questions Regarding Travel Insurance:
Is Travel Insurance Mandatory?
Normally, travel insurance is not necessary to enter a country on a tourist visa. The best is to research the entry requirements ahead of time to confirm this information. However, in order to apply for certain types of visas, like a Working Holiday Visa for instance, you might have to show proof of travel insurance to be granted the visa.
In any case, having travel insurance might not be mandatory, but it is highly recommended. It’s the kind of purchase you won’t think is necessary until you actually need it. Make sure to get your travel insurance now for your next trip.
Travellers needing a visa to enter European countries in the Schengen area are required to purchase travel insurance with a minimum coverage of 30,000 Euros. This requirement does not apply to Canadian travellers.
What Types of Travel Insurance Are There?
There are many types of insurance available to fit different situations and travel styles. A call with your travel insurance agent will be the best option to assess your needs. Basically, there are four major pillars to travel insurance: Travel Health Insurance, Medical Evacuation Insurance, Trip Cancellation Insurance and Baggage/Property Insurance. Some packages will also offer additional coverage for flight delay, accident or personal civil liability.
What Is Not Covered by Travel Insurance?
No one wants to read through an insurance policy! However, there are things that will definitely not be covered by your travel insurance if you make a claim such as: failure to declare pre-existing medical conditions (ex. Chronic ailments, pregnancy or any disease which was not contracted while travelling), failure to involve the police or show proof of ownership in the event of theft or loss, any accident that occurred while intoxicated, travelling through a high-risk zone, engaging in certain extreme sports, etc. Make sure to contact your travel insurance agent to validate the exclusions, conditions and limitations of your policy.
Am I Already Covered by My Credit Card Company?
Travel insurance issued by credit card companies should be regarded with caution. It is really important to understand the contract and its limitation. Some cards will cover trips up to a certain number of days while others will only cover purchases (ex. Flights, hotel reservations, etc.) made with the credit card. By having a good comprehension of your policy, you might find that it requires an additional complementary coverage from an external travel insurance company.
Nowadays it is less common to get coverage for flight accident through credit cards. Only all-inclusive packages provided through your travel insurance broker or through an insurance company directly will guarantee this additional coverage.
When Should I Subscribe to a Travel Insurance?
No matter what the type of insurance you wish to obtain, it should be purchased when the travel plans are official or money towards the trip has been spent on transportation or accommodation. Perhaps getting a travel insurance quote should be on the same level of priority as checking for flights or booking a hotel.
How Much Does It Cost?
This varies greatly based on the age of each traveller, the length of the trip, the type of travel/traveller (e.g. expatriate, snowbird, exchange student, etc.), the destinations (including or excluding Canada/USA) and the health condition of the person insured.
When planning your travel budget, you should not neglect the importance of getting a travel insurance. If you think you don’t have enough money for it then maybe you should not travel in the first place. Having to pay for emergency medical services without having a proper insurance can potentially mortgage your future. For a few dollars a day, it’s very little paid to have peace of mind.
Travelling, as much as it is a wonderful experience, should not be a source of stress. Getting a travel insurance before your trip will help lift the pressure off your shoulder and allow you to relax during your holiday.