Deborah Kearns
Kurt Woock
Many travel and premium credit cards offer travel insurance that includes emergency medical coverage — if you paid for your trip with that card.
About one in four Canadians say their credit card includes this coverage, according to a recent TD Insurance survey.
Having travel coverage can be a lifesaver, even if you’re staying in Canada. That’s because your provincial health plan might not transfer to other parts of the country for certain services like an air ambulance, explains Pamela Wong, head of affinity Canada for Manulife, a global travel insurance provider based in Toronto.
But relying on a credit card for emergency medical insurance while travelling may not be the best choice for every traveller.
Common credit card coverage gaps
Understanding if your credit card’s travel insurance policy works for you depends on the fine print.
For example, the Scotiabank Passport Visa Infinite Card provides coverage for 25 days for cardmembers 64 and under, but just three days for those 65 and older.
If you’re a relatively healthy person younger than age 65 and you’re taking a standard vacation in a popular tourist destination for a few weeks, your credit card’s emergency medical travel policy may be sufficient.
In addition to age-related limitations, watch out for these coverage gaps:
- Pre-existing health conditions. Credit card policies typically exclude coverage for many pre-existing conditions, such as pregnancy or chronic illness. Some direct-to-consumer policies offer coverage for existing health conditions.
- Trip length. If you’re spending a summer abroad, your card’s coverage might lapse before you return home.
- Coverage amounts. Credit card policies have lower coverage amounts than what you might be able to buy directly through an insurance carrier. For instance, the Scotiabank card is capped at $2 million for emergency medical expenses, but direct-to-consumer policies from Manulife and World Nomads offer similar coverage up to $5 million and $10 million, respectively.
- How you paid for the trip. If you don’t pay for the trip with your card, medical care won’t be covered.
- An itinerary with risky activities. If you’re going skydiving or scuba diving, for example, check your plan’s policy first.
Travel medical insurance options, compared
Before you travel, consider what will happen if you need emergency medical care. Remember: What worked well for someone else may not work for you.
“People have to realize that there’s no such thing as a vanilla plan that’s going to be a great fit/bullseye for everybody and every traveller,” says Christina Tunnah, general manager of global marketing and brands with World Nomads, a direct-to-consumer travel insurance carrier.
Credit card coverage
Best for: Relatively healthy travellers under age 65 who have access to a travel or premium credit card with travel emergency medical coverage.
If your credit card offers travel emergency medical coverage, read the fine print to understand what’s included (and what isn’t) to decide whether or not the policy is enough — or if you need supplemental coverage. You won’t pay extra for this coverage, but your card may have hefty annual fees.
Looking for a travel rewards credit card?
We compared the best options so you can get away in style.
Direct-to-consumer insurance providers
Best for: Travellers over 65, those with stable pre-existing medical conditions, long-term travellers and those without access to credit card emergency medical coverage.
Companies like Manulife and World Nomads offer comprehensive travel medical policies you can tailor to your trip needs and purchase directly from the carriers. Budget 4% to 12% of your trip cost for travel insurance, advises Canadian L.I.C. Insurance.
When purchasing through a direct provider, you can choose from single-trip or annual policies. For frequent travellers who take two or three trips per year, annual policies usually offer a better bang for your buck than buying one-off trip coverage, Wong says.
Banks
Best for: Travellers with access to bank-provided travel emergency medical policies and those who don’t have a travel or premium credit card.
Many banks offer travel insurance to premium members, and some of these policies may be more flexible in their guidelines. For example, CIBC’s Comprehensive Travel Insurance policy covers travellers who are 15 days up to 89 years old and goes up to $10 million in emergency medical coverage.
Pro tips for smart insurance shopping
Don’t wait until you’re at the airport to think about coverage because, by then, it’s too late. “It’s really important to actually make travel insurance part of your trip planning, and part of your trip budget,” Wong says.
Here are some quick tips on how to shop smart.
- Use the cooling-off period: Many policies offer a “free look” period (usually 10 days) where you can read the policy and get a full refund of your premium if you change your mind.
- Call customer service: Ask specific questions about how claims work and common reasons a claim might be denied before purchasing.
- Check online reviews: Read what other travellers have to say about different insurance providers and, especially, how their claims were handled.
- Consider benefits across policies: Understand how multiple policies (via your credit card or bank, or directly through an insurer) might work together.
About the Author
Cash or Card: What’s the Better Way to Pay While Travelling?
Cash and credit cards both have pros and cons as payment methods for travellers; here are some things to consider as you decide between them.
Hannah Logan
How to Choose a Travel Credit Card
With so many cards, rewards programs and benefits available, choosing the right travel credit card can be overwhelming. However, once you’ve got one in your wallet, you can reap the rewards on your next trip.
Barry Choi
Shannon Terrell
6 Simple Ways to Save on Your Next Family Vacation
Travelling off-season, booking early and redeeming credit card points are simple ways to vacation smart and save big.
Is House Sitting Your Ticket to Cheap Summer Travel?
House sitting gigs let you travel while eliminating your nightly accommodation costs. Just be sure you have a clear agreement and understand any visa requirements.
Clay Jarvis