Travel insurance: What's covered when a trip goes wrong
Travel insurance feels optional until the moment it is not. A broken ankle abroad, a missed connection, a stolen bag — each carries a very different bill depending on the fine print you read first.
Emergency medical coverage
Provincial health plans cover only a sliver of medical costs abroad — almost nothing for ambulance transport or evacuation. Emergency medical coverage pays hospital and treatment costs, and can arrange medical repatriation, which alone can cost six figures.
Trip cancellation and interruption
- Trip cancellation reimburses prepaid, non-refundable costs if you cancel before departure for a covered reason — illness, a death in the family, or job loss under some plans
- Trip interruption covers the unused remainder of a cut-short trip plus a last-minute flight home
- Timing matters: the strongest benefits apply only if you buy within days of your first deposit
Baggage and personal effects
Lost, stolen, or damaged luggage is typically covered up to a per-trip limit, with lower sub-limits for valuables. Delay benefits reimburse essentials bought while your suitcase takes the scenic route.
Exclusions that catch travellers out
- Pre-existing conditions. Complications from a condition that was unstable pre-departure are excluded unless a stability waiver applies
- High-risk activities — off-piste skiing, deep scuba diving, amateur racing
- Ignoring travel advisories for your destination
- Overstaying the maximum trip length — some plans simply lapse
Complaint bodies and card coverage
The Commission for Complaints for Airline Passengers handles airline disputes, but it is not insurance. Credit card and standalone protection can layer on top — verify what each actually pays before assuming double coverage.
Tip: Buy travel insurance the same week you book — the best cancellation benefits, including stability waivers, are tied to early purchase, not the night before departure.
The bottom line
Travel insurance turns a costly emergency into a claim form. Match coverage to the trip — medical, cancellation, baggage — read the exclusions, and buy early.
This article is for informational purposes only and does not constitute financial advice. Rates and product details change frequently — always compare current offers before making a decision.
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