Insurance for the Cautious Traveller

You’ve picked your destination and it’s not in Ontario or even Canada for that matter.  Everything is within your budget: flight, hotel, transfers, and meals. There’s one thing you’ve forgotten and it’s important.

Travel Insurance

Your credit card may say it includes travel insurance.  Please check the fine print.  Does it cover a pre-existing condition such as diabetes or asthma?  Chances are it doesn’t.  These plans MAY only be useful if you are in perfect health and within a certain age group.  You may have travel insurance through your work.  Again, check the fine print and the coverage.

Medical Insurance: Essential

Travel insurance companies would like your health to be perfect and/or stable.  Stable usually means that there have been no trips to the hospital emergency or changes in your medication or general health 6 months before you depart.  Again, you must also check the fine print of any travel insurance policy you intend to purchase because the terms of medical coverage may vary.  If your doctor advises you not to travel, then don’t – unless you are prepared to cover the expenses yourself, should you become ill or injured.  Work on recovery or stabilization with your doctor.  I’ve heard too many horror stories from people who travel without medical insurance. I do not recommend jeopardizing your financial future by travelling without medical insurance.  This is not the path chosen by the cautious traveller.

The cost of health insurance will vary so be sure to seek estimates from two or three reputable insurance companies.  I’ve purchased insurance from my bank, the Canadian Automobile Association, and Blue Cross.  I stick to well-known agencies and I am always honest.  NEVER lie about your health when purchasing travel health insurance.  If you are in perfect health and under 60, your insurance will not be too expensive.  My husband and I are in our early 60’s and we both have stable pre-existing conditions.  Our last medical insurance for travelling in Mexico cost about $260 CDN total, $130 each.  Not so shabby.

Cancellation and Luggage Insurance

Cancellation and luggage insurance plans are expensive and there are specific conditions that you can recover the cost of your vacation in the event of an emergency or if the airline loses your luggage.  I tend to avoid this insurance, because of the ominous fine print.

Some airlines now will allow you to change your flight up to 24 hours or so before your flight.  It’s different with each airline and not all off this feature.  I tend to use airlines that have this feature, even if I have to pay a bit more for my ticket.  For instance, my parents and I purchased tickets to fly to Vancouver from Toronto.  My father suffered a heart attack (from which he recovered) and we had to cancel the trip.  We were not able to receive a refund, but we could re-schedule the trip and could change the travellers.  My father didn’t want to travel so 6 months later my husband, my mother, & I flew to Vancouver with those tickets. 

Here are the questions to ask the airline:

Can I cancel or reschedule my trip? 

What is the additional cost?

If I chose to re-schedule, can I change transfer the credit to a family member or a friend?

What is the cost?

These questions can be answered in two ways – on the airline website and by calling a customer service representative.  I recommend using both.  Check. Double Check.

And then check the fine print on your documents.

I don’t purchase luggage insurance because I don’t travel with expensive clothes, jewelry, or luggage.  I carry my camera, phone, tablet, and medication in my carry-on luggage or purse.  I always bring one change of clothing and my bathing suit in my carry-on luggage, and I wear my walking shoes/sandals on the plane.  If the airline loses my luggage I can still head to the beach and have fresh clothes for the next day.  Usually the airline will locate your luggage and if not, well, I’ll buy some new clothes.  That’s a risk I can handle, unlike a medical emergency.

Being a cautious traveller, I’ve only had to claim once for medical treatment during our honeymoon in the Dominican Republic.  We were fully refunded by my work insurance and the additional health insurance I purchased.

I’d love to hear about your experiences with travel insurance.