What do the top travel insurance companies in Canada cover?

If there is one thing that Canadian travellers have learned from the COVID-19 pandemic, it is how a single event can prove costly and disruptive to their travel plans.

With the coronavirus outbreak forcing governments worldwide to suddenly shut down borders, the country’s travel sector was among the industries to bear the brunt of the impact. At the height of the pandemic in 2020, travel insurers across the nation paid out $950 million in claims, according to figures gathered by the Canadian Life & Health Insurance Association (CLHIA). 

The association added that these almost billion dollars in reimbursements covered largely trip cancellations, which included flights and hotel room bookings. Sadly, for the large number of Canadians who opted not to take out travel coverage, they lost thousands of their hard-earned money.

So, it is not surprising that in a recent poll by travel insurance specialist Generali Global Assistance (GGA), the majority of Canadian respondents (60%) said that they were likely to purchase coverage for their upcoming trips.

The insurer’s 2022 holiday barometer survey – conducted between April and May and participated in by a national representative sample of 1,000 Canadians – also revealed that summer travel is close to returning to pre-pandemic levels, with 61% of respondents indicating plans to go on a trip, either domestically or overseas.

Read more: Travel insurance industry tested by disruption from coronavirus

How did the pandemic change how Canadians plan their travels?

Earlier this year, the government began easing border restrictions, triggering a surge not only in travel-thirsty Canadians heading abroad but also in the sales of travel insurance, which is designed to keep them protected during their trips.

A recent analysis of comparison website RATESDOTCA of insurance quotes from the first quarter of 2021 to the same period this year has shown a significant year-on-year rise in interest across all types of travel insurance plans.

Annual travel insurance plans posted the biggest increase at a whopping 1,229%, followed by trip cancellation policies at 1,175%. All-inclusive coverage, the most comprehensive plan type, also registered a massive spike in interest, with inquiries climbing 1,032% year-on-year.

“While travel intent may be up, the COVID-19 virus remains active – and many Canadians have the foresight to consider travel insurance to mitigate risks,” the site noted. “As Canadians plot their next getaway or travel to see family overseas, they’ll want to ensure they protect themselves financially if there are cancellations or travel guidelines change.”

Read more: Airport delays prompt Canadians to consider travel insurance – survey

How does travel insurance work in Canada?

Most travel insurance policies in Canada are designed to cover costs incurred from health-related emergencies and disruptions to the travel itinerary. Here are the common types of plans Canadian travellers can access, along with their corresponding features and benefits, according to RATESDOTCA.

1. Single-trip emergency medical travel insurance or single-trip travel insurance

• Covers emergency medical expenses that may arise during the trip
• Coverage for a single trip can last up to 365 days
• Provides up to $10 million in emergency medical benefits
• Travellers may need to complete a health questionnaire to qualify for the policy depending on their age

2. Annual emergency medical travel insurance or multi-trip travel insurance

• Covers all trips taken over the course of a year
• Best travel insurance for people who take multiple trips in a year, and those who travel frequently for business

3. Trip cancellation and interruption insurance

• Covers the full cost of the trip if cancelled, delayed, or interrupted for reasons beyond the traveller’s control
• Trip cancellation and trip interruption coverage are similar insurance types, but the difference is that cancellation applies before the trip, while the latter comes into play once travellers already left
• Best for travellers who have medical coverage through their employer’s health benefits or credit card

4. Top-up travel insurance

• Optional insurance coverage for travellers who already have coverage through an employer or a credit card but who are not covered for the entire length of the trip, or do not have enough coverage
• Ensures travellers get extended coverage for the full length of the trip

5. All-inclusive travel insurance

• Bundles common travel coverages, including unexpected medical emergency, loss of baggage, and trip delay, cancellation, and interruption insurance into a single policy
• Most expensive option, but also offers the best protection

Read more: Nine simple ways Canadian travellers can save on insurance costs

What types of COVID-19-related coverage are available for Canadian travellers?

The good news is unlike at the onset of the pandemic when COVID-19 cover was uncommon, travel insurance providers have since stepped up their game and have started offering protection against disruptions related to the coronavirus.

Tourists, however, also need to consider a few points before purchasing travel insurance policies. These are:

• Coverage may be “explicitly excluded” if the destination countries are under an “avoid non-essential travel” (Level 3) or “avoid all travel” (Level 4) advisory at the time of purchase.
• COVID-19 vaccination status may also affect coverage – those unvaccinated by choice may have their claims declared ineligible by their insurers.

RATESDOTCA also listed the common COVID-19 protections the top travel insurance companies offer as part of, or as an add-on for, emergency medical travel insurance. Their plans typically include:

• Emergency medical costs – including intensive care, medical tests, and medications – for up to $1 million per insured
• Non-COVID-19 emergency medical coverage for physical injury and illness for up to $5 million per insured
• Quarantine-related costs – including meals and accommodation – for up to $2,000 per insured
• Ambulance transportation costs
• Air evacuation from destination to Canada, including a one-way economy ticket for the insured, and may also cover passage for dependents and travelling companions
• Repatriation costs up to $5,000 per insured in the event of death

Read more: What COVID-19-related cover do Canada's top travel insurers provide?

What do the best travel insurers in Canada cover?

There is no single travel insurance policy that can cater to the varying needs of every traveller. Different insurers offer varying levels of protection and often the best travel coverage is the one that fits the unique requirements of each trip.

A basic plan covering flight cancellation, for example, would suffice if a person already has supplemental individual medical coverage and is going on a trip within Canada. On the other hand, adventure travel enthusiasts planning a hiking trip to Alaska would benefit from a comprehensive plan with emergency medical care and evacuation back home in the event of an accident.

Here are some of the key coverages the best travel insurance providers in Canada offer.

1. 21st Century

Policy name: Medicare International Travel Insurance – All-Inclusive Plan

2. Allianz Global Assistance

Policy name: Medical + Cancellation Plan

3. BMO

Policy name: Single Trip Premium Travel Plan

4. CIBC

Policy name: Comprehensive Travel Insurance

5. Desjardins

Policy name: Travel Insurance

6. Goose Insurance

Policy name: Single Trip Worldwide

7. Johnson Insurance

Policy name: MEDOC Travel Insurance

8. Manulife

Policy name: CoverMe Single-Trip All-Inclusive Plan

9. Medipac

Policy name: MedipacMAX

10. RBC

Policy name: Classic Medical Single-Trip Plan

11. Scotiabank

Policy name: Scotiabank Travel Insurance – Out of Province (Single-Trip All-Inclusive Plan)

12. TD Insurance

Policy name: Travel Medical Insurance Single-Trip Plan

13. World Nomads

Policy name: Travel Insurance Standard Plan