Travel Insurance: What’s Going On in 2023?
Alright, let’s get real—travel insurance isn’t the most thrilling topic on the planet, but if you’re planning a trip, it’s something you gotta think about, especially this year. As Canadians start swapping their winter coats for summer shorts, many are also reconsidering their travel plans—and insurance is definitely part of that mix.
This year, the average cost of medical travel insurance has bumped up significantly, with premiums rising around 8% overall and even a shocking 12% among certain providers. Dan Donnelly, the travel insurance guru over at Travel Insurance Office Inc. in Markham, Ontario, says it all boils down to skyrocketing hospital costs south of the border. Who knew health care could be so pricey?
So, what’s a savvy traveler like yourself to do? If you’re ditching the U.S. for somewhere sunny, you might just score some savings through lower premiums. But if you’re one of those folks still flocking to Florida, be sure to explore credit cards that offer better protection against all those pesky trip delays. And let’s be honest, with the way life’s been throwing curveballs, who couldn’t use a little extra coverage?
Geopolitical Events: The Elephant in the Room
Let’s take a step back and talk about what’s been happening. If you’ve been paying attention, you probably know the world is kinda messy right now. A trade war, crazy exchange rates, and tighter travel regulations have caused many Canadians to think twice about visiting the U.S. Whether it’s the politics or just the discomfort of conspiracy theories floating around, it’s enough to make anyone wary.
In a survey conducted back in April by the Travel Health Insurance Association of Canada, a startling 70% of Canadians admitted they weren’t keen on visiting our neighbors down south. That’s a huge number! When I look back on some trips I took to the U.S., like that wild road trip to California, I can’t help but wonder if I’d have the same energy for it now. What if I face a situation where I wouldn’t feel safe or welcomed? The thought alone feels like a buzzkill.
Now, with so many Canadians planning trips to other parts of the world, like Mexico, Japan, and Europe, insurance for those travels usually comes cheaper. It’s all about those U.S. hospital costs that get factored into premiums. I still remember a friend of mine who had a health scare on a trip to San Diego, and let’s just say, those hospital bills could give anyone nightmares—talk about expensive!
Is Credit Card Travel Insurance Enough?
So, you’ve got a credit card with travel insurance. Awesome! But is that really enough? Odds are, if you’re under 65 and fit as a fiddle, you’re probably in the clear. Most Canadians don’t run into issues with their card’s coverage. However, geopolitical tensions can lead to all sorts of unexpected travel misadventures, so it’s wise to double-check the type of credit card you’ve got. You definitely want one that covers trip delays and cancellations, especially in today’s world.
Remember that time Sunwing thought it’d be a good idea to cancel bookings last minute because they couldn’t fill flights from Halifax to Florida? Trust me, you wanna be prepared for situations like that. So, if you’re holding a card like the Scotiabank Passport Visa Infinite or the National Bank World Elite Mastercard, you’re in luck. Those cards are known for their solid insurance options, which can cover everything from medical mishaps to lost luggage. I can’t even tell you how often I’ve seen folks panic when their bag went missing. Pro tip: keep that keychain close; you never know!
FAQ: Will My Credit Card Cover Me Adequately?
Can I get travel insurance if I have pre-existing conditions?
Yep, but these may be trickier. Be sure to read the detailed fine print because some policies have exclusions for, say, a broken leg after a mountain hiking trip if that part of your health is something you’ve struggled with before.
If I’m injured participating in extreme sports, am I covered?
Not necessarily! Most standard travel insurance doesn’t cover activities like scuba diving or skydiving. If you’re a thrill-seeker, consider additional insurance tailored to those high-adrenaline activities.
What happens if I travel somewhere with a Level 3 Advisory?
You might have the option to cancel through your travel insurance, but those protections can depend on whether you’re using a credit card or a separate policy. It’s vital to check the specifics!
Work Insurance: Should You Rely on It?
Hey, work policies can be a lifesaver, right? And honestly, for the average traveler, they’re often more than adequate. But Mr. Donnelly (yes, I’m on a first-name basis now!) suggests you should still check the fine print. There could be hidden landmines, especially if you’ve got health issues or are planning to do something a little dicey like bungee jumping.
I learned that the hard way on a recent trip. I thought I was covered under my work insurance until I read the tiny font and realized my coverage didn’t extend to activities that could land me in the ER. When you’re planning on pushing your limits, assume zero coverage and prepare accordingly. The last thing you want is to face a mountain of medical bills because you assumed something was fine.
Political Turmoil: Am I Covered?
Now let’s address the elephant in the room: dangerous political situations. It’s a bit of a minefield out there, isn’t it? Depending on whether you’re holding an individual policy or a credit card-based plan, you might get some level of cancellation coverage if Canada places a Level 3 travel advisory on your chosen destination.
When in doubt, dig deep into the details. If you’re going somewhere a tad risky, consider that credit cards often cap coverage at a specific amount, say $5,000. This brings me back to an unforgettable backpacking trip I did where one of my friends fell ill in a politically unstable area—he was lucky enough to have robust coverage and was evacuated safely. That kind of peace of mind? Priceless.
Staying Within Canada: Is Insurance Necessary?
Now, let’s talk about traveling within our beautiful country. I mean, it’s gorgeous, right? But even if provincial insurance like OHIP covers most health costs, it’s not a blanket cover. There are two crucial caveats you can’t ignore.
Think about it this way: you’re cruising through Alberta, and BAM! An accident happens. No worries; the hospital takes you in, but guess what? You’ll get hit with an ambulance bill. If you’re airlifted during a camping escapade, that’ll cost you even more—thousands, in fact. Ouch! Trust me; it is better to be cautious than to get caught in that sort of pickle. My cousin learned the hard way while hiking in the Rockies last summer, and let’s just say no one wants to face those kinds of bills on top of everything else!
What’s It Gonna Cost You?
Alright, so let’s get to the nitty-gritty: how much is it gonna cost? According to Mr. Donnelly (seriously, I need a tribute to this guy), a healthy 73-year-old traveler could be looking at around $1,200 for a 100-day policy. Meanwhile, a sprightly 67-year-old would pay about $850. But hold up! If either of them has any serious health conditions—yikes!—the rates could easily double. Who wants that?
Even more fascinating? Depending on your activities and how long you’re planning on being away, the costs can definitely vary. Imagine you’re planning a two-week trip versus an extended stay. You’ll find that the daily rate can change. The last time I booked an extended trip, I learned that the longer I stayed, the more the rates jumped. It was a real head-scratcher. Just make sure to double-check when you’re booking! You’ll thank me later.
Saving on Travel Insurance: Clever Tricks
Finally, you made it to the gold! Who doesn’t want to save some cash? (I mean, am I right?) Frequent travelers can totally score with multi-trip annual plans. You can take multiple trips each year, with each one covered for up to 35 days. It’s like finding a golden ticket!
But here’s a crafty hack for you: returning to Canada briefly between trips can refresh your policy. Seriously, even an hour spent back home can reset the clock with some insurers. Isn’t that mind-blowing? My friend did this when he decided to backpack between Europe and Asia. He found out just in time, and that little trick saved him a boatload!
And another money-saving tip? Consider raising your deductible. You can cut costs by as much as 15 percent that way. It’s a win-win. Just make sure you’re comfortable with that amount because nobody wants to deal with a nasty surprise. Travel smart, save smart!
