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Guest article by Rhonda Martin, Plan For Wealth
Travel insurance can be seen by many as an unnecessary additional cost to a vacation – until something goes wrong. While some travellers rely on ‘credit card’ travel coverages, others purchase their own policies to be sure they are covered.
But are they?
In this article, we are debunking the top 5 myths regarding travel insurance so that you spend wisely and are well informed before booking your next holiday.
Myth #1: “My Credit Card Covers Everything”
Reality: Most credit cards provide “light” coverage for medical emergencies while other cards, such as the TD Platinum Travel Visa covers many travel related costs but NOT emergency medical insurance. Be sure to know exactly what is and is not covered!
- While they might cover flight delays or lost luggage, credit cards often have low limits for emergency medical care or medical evacuation, which can cost upwards of $100,000 in some countries.
- Most credit cards only cover a small number of days per trip, and even less after certain ages, such as age 65. Don’t assume your credit card coverages: we recommend calling to confirm.
- Often, paying 100% of your trip cost is a requirement to having coverage through your card.
Myth #2: “I Can Cancel for Any Reason”
Reality: Standard policies only cover “named perils” (specific reasons) like a sudden illness, a death in the family, or a natural disaster.
- If you want the freedom to cancel because you changed your mind or are “fearful to travel,” you will need to purchase a Cancel For Any Reason (CFAR) rider, which costs more and only reimburses a certain percentage of your costs.
Myth #3: “Pre-existing Conditions are Never Covered”
Reality: Many people think a chronic illness makes them uninsurable. In fact, most insurers will cover pre-existing conditions if they have been “stable” for a specific period (usually 90 to 180 days) before you bought the policy.
- Look for a “Pre-existing Condition Waiver,” or “unstable pre-existing conditions” riders which some companies offer. These may be well worth the spend to guarantee your protection.
Myth #4: “I’m Covered for Every Activity”
Reality: Standard travel insurance is designed for “sightseeing,” not adrenaline.
Many policies explicitly exclude “high-risk activities” like:
- Skydiving or bungee jumping
- Scuba diving (unless certified or below a certain depth)
- Skiing “off-piste” (outside of marked trails)
- Riding a moped/scooter (especially without a valid licence)
If you are planning to do any of these kinds of sports, ask about an Adventure Sports rider, for example, as only some companies offer this protection. We also recommend you ask for a copy of the policy wording before you confirm your purchase, to be sure you know what is (and is not) covered.
Myth #5: “I Don’t Need Insurance for Short or Domestic Trips”
Reality: Misfortune doesn’t have a minimum mileage requirement.
- Travel within Canada: Even if you have health insurance, your local plan might not cover an ambulance ride or a medical flight home from a different or province
- Also, OHIP doesn’t cover accident or illness outside of Ontario
- If you have an annual travel insurance plan, this covers travel within Canada too
- Short Trips: A two-day trip can be ruined by a $400 flight cancellation just as easily as a two-week one
Final Advice — Travel Advisories
Be sure to check the Government of Canada website for travel advisories: Travel advice and advisories – Travel.gc.ca
Important Note: Advisories from the government can invalidate your travel coverage in most cases.
The truth of most denied travel claims is that these often happen because the traveler didn’t read the exclusions section of their policy — don’t let this be you and ruin your long-awaited holiday. “ The devil is in the details” as they say – so ask to review coverage details and speak with a licensed travel insurance professional before you purchase.
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