Is Domestic Travel Insurance Really Necessary?
A car accident in Las Vegas, an allergic reaction in Johannesburg, being airlifted off a cruise in the middle of the ocean. Nightmare stories of emergencies and astronomical medical expenses are enough to scare lots of travellers into making the prudent choice of buying insurance for their international trips.
What many Canadians don’t do is buy insurance for domestic trips. A travel survey conducted for CAA reveals that four in ten Ontarians (41 percent) travelled outside their home province without travel insurance during their last trip. Some believed it was unnecessary (43 percent), others worried about the cost (24 percent), and 20 percent took their chances, hoping nothing would go wrong.
“Many Canadians assume they’re fully protected when travelling within the country, but that’s simply not the case,” says Kaitlynn Furse, Director Corporate Communications, CAA South Central Ontario (SCO). “A minor mishap can become a major expense, whether a broken ankle on a hike or a last-minute interruption.”
Data from Manulife, Canada’s largest travel insurance provider, reveals that its “Travel within Canada” products represent only approximately 10 per cent of travel insurance sales. Domestic travel is surging — 77 percent of us are planning to stay here this year, according to Leger — so the misconception that Canadians don’t need travel insurance for interprovincial travel needs to be corrected.
Related: TTAND Agent Julie Gillen is Proof Travel Insurance Works
“As Canadians explore our own backyard, it’s important to make travel insurance part of trip planning,” says Pamela Wong, Head of Travel Insurance and General Manager, Affinity at Manulife Canada. “Many people assume they are covered everywhere in Canada, but there are limitations. Travel insurance covers unexpected costs, ensuring you can focus solely on enjoying experiences and making core memories.”
While provincial healthcare covers some out-of-province medical costs, it doesn’t cover all of them. Generally, things that are covered in your home province are covered elsewhere in Canada under a reciprocal billing agreement (Quebec operates differently). So doctor’s visits or emergency room treatments shouldn’t incur a charge, although you may have to pay up front and apply for reimbursement from your home province.
Things that aren’t covered by the province, notably air and ground ambulance and prescriptions, are not covered when you travel either, and your regular private insurance benefits may or may not cover you when you are out of your province of residence.
Some insurance companies offer domestic travel insurance products. Depending on coverage needs and trip specifics, they can be significantly less expensive than international travel coverage. Another option for frequent travellers is an annual plan that covers both domestic and international travel. Your clients may also be interested in non-medical or all-inclusive protection that covers their belongings and the cost of their trip.
“No matter where a Canadian is travelling to, they need to protect themselves, their families and the value of the trip they’ve purchased,” says Jennifer Waver, Head of Travel Distribution at Manulife Canada. “As people gear up to enjoy their summer vacations, it’s an important message to keep in mind.”
Related: Why Travellers Should Purchase Cruise Protection
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