Summer holidays are almost here, and for many families, it is time to travel! You might wonder if travel insurance is worth it and question what you’re actually buying. Perhaps you think it sounds like insurance you don’t need, and travel insurance is just a money grab; kind of like buying extended warranties on products that will last two years.
To help you understand it’s importance, let’s look at what travel insurance is, if you need it, and what to look for when you’re buying coverage.
What is Travel Insurance?
Travel insurance is a short-term insurance policy. Policies include coverage for out-of-pocket expenses you have to pay if you’re injured. These can include prescriptions, ambulance costs, hospital visits, and dental procedures.
You can also get accidental death or dismemberment insurance: This insurance feature pays out up to about $500,000, depending on the situation.
Do You Need Travel Insurance?
You could say there are pros and cons to each side. Insurance professionals will tell you that you should never go on a trip without coverage. A world traveler who has never purchased it will tell you how many trips they’ve taken without incident.
The latter might lead you to believe you’re better off to take your chances, because you’re healthy and you’ll be careful. Although this might be true, most accidents happen due to the negligence of someone else, and you could always catch a virus. Even food poisoning can lead to a trip to the hospital.
It’s important to note that if you’re in another country (including the United States) and need any type of medical care, you’re not covered unless you buy travel insurance. It’s also important to note that you could be out thousands of dollars if you require even a quick trip to the hospital outside of Canada. In the United States, medical care is especially expensive.
Travel Insurance Options and What to Look for When Buying Coverage
You can buy travel insurance from many sources: directly from airlines and cruise lines, independent travel agencies, some credit card companies, and insurance brokers. Make sure to buy from someone you can trust, and remember the cheapest isn’t always the best. When you buy from a company or broker, they can advocate on your behalf if you have to make a claim.
Generally, travel insurance costs around 5 per cent of your entire trip. Make sure that you’re covered prior to your trip. You can’t make a retroactive claim if you become ill, then try to purchase a policy while on vacation.
Travel insurance protects you within Canada as well. When you go out of province your provincial healthcare doesn’t cover you for everything. For example, ambulance, hospital transfer, or transportation back to your home province, will not be covered.
If you go to Quebec, they’re not part of the interprovincial billing agreement. You’ll probably have to pay upfront for services. Although you can usually submit a claim and get reimbursed from your own provincial ministry, you’re still short money until you’re paid.
At Sadler Insurance, we can help you find the best travel insurance policy for your needs. For more information please visit our website.