Insurance for domestic travel advised
The gaps in coverage across Canada could cost you thousands of dollars
Horror stories about hospital stays outside of the country — especially in the United States — resulting in medical bills in the hundreds of thousands of dollars should drive any Canadian to purchase some type of travel insurance that includes medical coverage for travel abroad. But what if your travels are taking you to another part of the country, instead of out of it?
Travel within Canada is on the rise because of the low loonie and that situation is likely not going to change as we head into the winter months. An expedia.ca survey in the spring found that 48 per cent of Canadians will visit some province other than their own this summer.
Here’s the truth about the need for travel insurance if you’re not leaving Canada: It’s worthwhile to have, but maybe not a catastrophic financial event if you get sick and even hospitalized out of province without it.
Nonetheless, Canadian insurers have been pressing the panic button on the need for coverage even within the country — despite the Canada Health Act, a federal regulation that ensures health coverage across the country because it forces most provinces and territories to provide health insurance in order to receive transfer payments from Ottawa.
Generally, a provincial or territorial plan will cover the cost of health care you receive out-ofjurisdiction, but only based on what the care would cost in your home jurisdiction — the gap is your problem. Visit a doctor on vacation, within Canada, and you might have to pay up front and provide receipts to be reimbursed later.
Insurance is all about mitigating major risk. The gap in costs across Canada is not as large as the gap with the U.S., but there’s nothing to say you couldn’t be stuck with a bill in the tens of thousands of dollars.
Anita Mukherjee, head of travel for RBC Insurance, points out that special-care needs like ground or air ambulance, crutches and emergency dental treatment are not covered by your local health plan. “Any provincial plan has certain limits. It’s not just about shortfall but other things,” she says, noting an air ambulance could cost you up to $20,000. Travel insurance will also include trip cancellation or trip interruption, and would cover you if you get sick before or during your trip.
The Conference Board of Canada says 19 per cent of Canadians were not covered for their last outbound trip from their province, says Mukerjee. “And that’s scary,” she says.
If you have no plans to leave Canada you can buy a cheaper domestic plan.
Rhonda Podger, manager of Special Benefits Insurance Services, said a 65-year-old can buy a Canada plan for $2.05/day with zero deductible and up to $5 million in coverage, which compares with $6.81 a day for a visit to the U.S. with the same coverage.