What Does Travel Insurance Cover?

Whether it’s for work or fun, travel insurance often gets brought up when you’re going away. Not sure if you even need to get it? Visit our blog post on that on that first. If you’re sure you need it but are wondering what does travel insurance cover and are confused about the situation, you’re in the right spot! 

Travel Insurance covers you for extra expenses you might have if something bad happens on your trip.  

You’ll have the option to cover everything from cancelling your trip after you’ve paid for non-refundable hotel and airfare, to ending up in the hospital after an accident or catching a serious bug. You can even get coverage if the airline loses your luggage and leaves you with one pair of underwear. 

Now, I make light of it with the one pair of underwear thing, but people’s lives have been ruined over an out of country hospital bill forcing them to declare bankruptcy. 

However, you may already have travel insurance! 

Take a look at your Work Group Benefits plan and see if that offers anything. Your credit card or other member benefits plans that you’re a part of could also be used in this situation. Make sure you take a look at what you’re actually covered for and how much before you leave. 

For example, some credit card companies offer travel insurance, but only if you booked your trip using that credit card. Others will only cover you in certain, extreme situations and all plans have a maximum amount of money they’ll pay.  

If you have multiple plans that cover you – for example, coverage through your credit card AND you’ve bought separate travel insurance – the contracts will tell you who the “First Payer” is. That’s the Insurance Policy that has to pay you first. You’ll submit your bill/receipt to that company and they’ll pay you based on what the contract says. If they pay the whole thing, your second policy WILL NOT pay you. If the First Payer doesn’t cover your whole bill, THEN you can send the remainder to the next insurance company. You cannot have one bill paid by 2 companies. 

Keep in mind, most plans WILL NOT cover you if you’re intoxicated when you get hurt. 

For Canadians, each province has its own health plan. Just because you’re a Canadian resident does not mean you’ll be as covered in other provinces as you are by your own Province’s health plan. Provincial health care coverage is required for these individual plans, so make sure your account is up to date. Plan accordingly.  

Travel Insurance is there to cover the expenses of getting hurt in another Country or Province. You don’t pay into other Country’s medical systems like you do in Canada through MSP (or equivalent) and taxes, so you have to pay that Country’s full price. And it can be very expensive. 

Ending up in the Hospital or passing away and needing to transport your body home are the most expensive things you’ll want to cover. As I said, you’ll have to pay full price for any hospital and medical attention you require.  

Travel insurance covers a number of things. Here are a few benefits you might want in your plan: 

• Emergency Medical: Events or sickness that could land you in the hospital, Doctor’s office, etc. 

• Trip cancellation and Interruption: Getting your money back if you have to unexpectedly cancel your trip or having to book a hotel if your flight is delayed.
• Baggage loss, damage, or delay: To keep clothes on your back if your baggage is delayed or to replace items if it gets lost
• Travel accident including death and dismemberment: passing away in another country is VERY expensive. Your body needs to be processed and specially transported back home. 

Travel Insurance is certainly worth it, but it’s not mandatory. The chances of having to use your insurance is quite low. The risk you’re taking on, however, is MUCH greater than if you were at home and put in the same situation. 

There are 2 MOST IMPORTANT things you need to know about Travel Insurance: 

1. How to claim: know before you go. Your policy might require you get certain Doctor’s notes or Xray photos that will be hard to get once you’re back home. 
2. You’ll probably have to pay the cost up front. Most often, you’ll have to pay the Dentist/Doctor/ Pharmacy bill before you leave their office. You’ll submit the receipt to the Travel Insurance company when you’re back home to be reimbursed. Make sure you have some emergency cash! 

Looking for a travel insurance? Give us a call!

Happy Travels 💃🕺