Travel Planning in 2023: What’s the Deal with Insurance?
So, you’re getting ready for a trip? That’s awesome! But let’s talk about something that might not be at the top of your checklist: travel insurance. It’s time to face the music—insurance is more important than ever, especially with the way premiums are soaring. It’s reported that medical travel insurance for Canadians has seen an average hike of 8%, and some providers are even hitting a whopping 12%. What’s the cause? Mainly sky-high hospital costs in the good ol’ U.S.A.
Now, if you’re one of those folks avoiding the States, you might find a silver lining. Insuring your trips elsewhere could save you some cash, thanks to preferred premiums. But, if you’re still heading south, maybe it’s worth checking out your credit cards or plans that offer better protection against delays and disruptions. It’s a wild world out there—here’s what you absolutely need to know about travel insurance these days.
How Geopolitical Events Are Shaking Up Travel Planning
You ever felt like the world is just a bit too chaotic? Well, you wouldn’t be wrong. A trade war, crazy exchange rates, and stricter travel rules have made many Canadians rethink their trips to the U.S. Take a look at a recent survey by the Travel Health Insurance Association of Canada—61% of Canadians are feeling the itch to travel this year, but a whopping 70% say they’re keeping their sights set elsewhere other than the U.S.
It’s a bit painful as a Canadian who loved weekend trips to New York or Florida. But there are other gems out there: Canada’s backyard has some incredible spots. From the stunning views of Banff to the vibrant streets of Montreal, you can have all the adventures without the hefty insurance premium that U.S. visits often bring. And yes, you can find cheaper insurance if you’re flying to places like Mexico, Japan, or Europe.
What You Might Not Know About U.S. Medical Costs
Now let’s get into the nitty-gritty. If you’ve ever been to a U.S. hospital, you probably know it’s like stepping right into a money trap. I remember a trip where my buddy had a pretty mild fall during a hike. Just three days later in the hospital, the bill was more than we’d spent on the whole trip! Martin Firestone, a travel insurance guru, mentions it’s not unusual to rack up hospital costs of around US$175,000 for just three days in observation.
So if you’re going to brave the U.S., you definitely need enough coverage. Mr. Donnelly throws out some serious numbers, saying that even coverage of $2 million isn’t always enough anymore. I mean, getting hit with a claim of $2.4 million? Yikes! This should make you second-guess that trip to the States. But travelling somewhere else? You might just save yourself a pretty penny on premiums.
Credit Card Coverage: Worth It or Not?
Let’s chat about credit cards because they’re everywhere. Many Canadians under 65 can breathe easy with the coverage that comes with certain cards. That said, geopolitical tensions can create hiccups, and the last thing you want is to be stuck in a mess without enough coverage. A good travel card is like finding solid gold these days. If you’ve got a Scotiabank Passport Visa Infinite or a National Bank World Elite Mastercard, you’re looking at some robust coverage options.
I remember using my credit card insurance when a last-minute flight cancellation turned my planned Caribbean getaway into a weekend at home. Talk about a bummer! Luckily, I had that credit card coverage that saved my rear when all the cancellations started piling up. So yeah, it pays (literally) to do a bit of research before you hit the “Book Now” button on that flight.
FAQ: Your Travel Insurance Questions Answered
Do I really need travel insurance for short trips within Canada?
Good question! Though provincial insurance like OHIP covers a lot, there are two huge caveats to consider. Picture this: you’re road-tripping across Alberta, and bam! A serious car accident happens. That ambulance ride? Yeah, you’re stuck paying for it—along with the hospital fees. Think about it. If you lose any meds while traveling, you’ll likely eat those costs too.
What about travelling during a political crisis?
If Canada issues a Level 3 travel advisory for a destination, you might have some cancellation coverage, but keep in mind that credit cards often cap compensation at around $5,000. That could leave you in a tough spot if something goes south. For solid peace of mind, an individual policy is where it’s at and should be tailored to cover all those “what ifs.”
Are all travel insurances the same?
Not even close! It’s super important to carefully read the fine print. Some policies might leave out crucial coverage like accidents stemming from high-risk activities or injuries from having a bit too much fun. Always check for exclusions—doing your due diligence could save you a heap of trouble down the road.
How Much Does Travel Insurance Actually Cost?
So, wondering how much it’ll set you back? Mr. Donnelly lays out the details for us: a 100-day plan for a healthy 73-year-old can cost around $1,200. Compare that to a healthy 67-year-old at about $850. But wait—if either of them has a serious health condition, those rates could skyrocket. No one wants to get hit with a bill that’s double or triple what they expected.
Depending on how active you are, those insurance rates can shift. Say you plan to scuba dive or do any extreme sports—that could also ramp up your costs. Fun fact: if you’re planning a longer trip, just a one-hour stop back in Canada can sometimes reset the fees. Seriously! All it takes is an hour to make a big difference. Go figure, right?
Smart Ways to Save on Travel Insurance
But hey, before you roll your eyes at the costs, there are ways to save! Frequent flyers should check into multi-trip annual plans. It’s like a buffet of coverage—you can take multiple trips throughout the year, all covered for as much as 35 days. Sweet deal! Plus, if you bounce back to Canada between trips, many policies reset, and you save a chunk that way.
Don’t forget, raising your deductible can save you a ton—sometimes up to 15%. Just don’t end up in a situation where you’d regularly need to claim. Definitely not the kind of stress you want pre–vacation. It’s about balance: finding the right coverage at the best cost.
Final Thoughts: Don’t Skip the Insurance!
In a nutshell, if you’re traveling this year, don’t skip out on the travel insurance. It’s more relevant than ever with climbing costs and unpredictable events. As someone who once packed my bags for the dreamiest vacation only to be turned around by a last-minute flight cancellation, I can tell you—having that safety net is totally worth it. So do your homework, compare your options, and give yourself—and your wallet—a little peace of mind. Safe travels!
