Credit Card Travel Insurance In Canada – Am I Covered?

Credit Card Travel Insurance In Canada Introduction

Credit card travel insurance in Canada. What a horrible, but necessary, conversation. My attitude on insurance is simple: I get it for things that matter, and really hope I never have to use it. It seems like every aspect of life comes with the chance to insure against every peril imaginable. I recently purchased some furniture and the sales associated offered purchase protection (which I declined by the way). She warned of a scenario where I sat down on my new sofa with a pen sticking out of my pocket and I puncture the upholstery, forever ruining my new investment. What a scary, horrible and unrealistic scenario.

Even more recently, I purchased a new car. During the dreaded closing ceremony, the business manager offered an extended warranty that seemingly covered everything, from blown out tires to keys that go through the dishwasher. However, I rarely keep vehicles beyond the factory warranty period, so again, this was an easy one to decline.

Two places I don’t mess around though. Home and travel. Last year I watched my neighbouring apartment building burn down two weeks before Christmas. That was frightening to say the least, and I will never complain about paying my home insurance premiums as long as I remember that day.

Travel insurance is equally important, and unfortunately something many younger travellers don’t think about. We’ve all heard the stories of the naive Canadian going to Seattle for the day, only to get struck by a terrible accident and hospitalized. Without travel insurance, the poor Canadian is stuck with all the medical bills, which can easily be hundreds of thousands of dollars, depending on the severity of the accident. I’ve heard personal accounts of people who’ve been in mild accidents only to drive home in excruciating pain to avoid medical services while being uninsured out of the country.

While I hope I never have to make a serious claim, travel insurance can provide important protection against unexpected costs while travelling. Many premium credit cards in Canada include varying levels of travel insurance, but the coverage, eligibility requirements, exclusions and claim limits can differ significantly between cards.

This guide provides a general overview of common credit card travel insurance benefits. Always read the current Certificate of Insurance for your specific card before relying on it for a trip. The Certificate of Insurance governs your actual coverage.

Credit Card Travel Insurance In Canada Categories

Credit card travel insurance in Canada can be a bit confusing. The difference between out of province/country medical coverage and emergency medical assistance is unclear, and the verbiage used in describing these coverages can be misleading. I once heard someone say that in order to fully understand travel insurance you would need to be a travel expert and lawyer, which I’ve come to agree with. Let me try to break down the differences from the travel experts perspective.

Out Of Province/Canada Medical Insurance

Emergency medical insurance is one of the most important travel insurance benefits to check before leaving your home province or Canada.

Your provincial or territorial health plan may cover only a small portion of medical expenses outside Canada, or none at all. Travel medical insurance can help cover eligible emergency medical expenses while you’re travelling, subject to the terms, conditions and exclusions of your policy.

It’s also important to distinguish emergency medical insurance from emergency assistance services. Having access to a telephone service that can provide medical or legal referrals does not necessarily mean the card includes insurance that pays eligible medical expenses.

For example, the American Express Platinum Card currently includes the following emergency medical coverage:

Stay protected with up to $5,000,000 in emergency medical coverage for eligible expenses when traveling outside your province or country. Coverage applies for the first 15 days of each trip (for insured persons under 65).

American Express separately describes its travel emergency assistance benefit as:

Get peace of mind with 24/7 access to emergency medical and legal referrals when you’re out of town. Connect by phone anytime, day or night, for assistance wherever you are.

These are different benefits, so always confirm that your card includes actual emergency medical insurance rather than assuming emergency assistance provides medical expense coverage.

Does My Credit Card Include Emergency Medical Insurance?

Don’t assume a card includes emergency medical insurance simply because it’s marketed as a travel card.

For example, the American Express Platinum Card and Gold Rewards Card currently include:

Stay protected with up to $5,000,000 in emergency medical coverage for eligible expenses when traveling outside your province or country. Coverage applies for the first 15 days of each trip (for insured persons under 65).

Coverage periods, age restrictions, maximums and exclusions vary by card, so check the current Certificate of Insurance before every trip.

Trip Cancellation Insurance

 Trip cancellation insurance can help protect prepaid, non-refundable travel expenses if you need to cancel your trip for a covered reason before departure.

The important phrase is “covered reason.” Trip cancellation insurance doesn’t generally allow you to cancel simply because you changed your mind or no longer want to travel.

Coverage amounts and eligible reasons vary by card. For example, the American Express Platinum Card currently includes:

Get up to $2,500 per person (maximum $5,000 per trip) reimbursed for non-refundable travel expenses if you need to cancel for a covered reason, as long as you charged the costs to your card before departure.

The American Express Gold Rewards Card currently includes:

Get up to $1,500 per person (maximum $3,000 per trip) reimbursed for non-refundable travel expenses if you need to cancel for a covered reason, as long as you charged the costs to your card before departure.

Always check your card’s Certificate of Insurance for the covered reasons, payment requirements, exclusions and maximum reimbursement before relying on this benefit.

The following are other types of travel insurance you may find on Canadian credit cards. Not every travel card includes every type of coverage, and the eligibility requirements and limits can vary significantly between cards.

Trip Interruption Insurance

Replace the entire body of that section with:

Trip cancellation and trip interruption sound similar, but the timing is different:

Trip cancellation applies before your trip starts.

Trip interruption applies after your trip has started.

Flight delay insurance applies to eligible delays while you’re travelling by air.

Trip interruption insurance can reimburse eligible non-refundable, unused travel expenses when your trip is interrupted or delayed for a covered reason.

For example, the American Express Platinum Card currently includes:

Receive up to $2,500 per person (up to $6,000 total per trip) for non-refundable, unused travel expenses if your trip is interrupted or delayed for a covered reason, as long as you booked with your card.

The exact covered reasons and payment requirements are defined by the Certificate of Insurance, so check your policy rather than assuming every unexpected interruption will qualify.

Flight Delay Insurance

Flight delay insurance can help cover eligible out-of-pocket expenses when a flight is delayed for long enough to meet your card’s coverage requirements.

The required delay period, eligible expenses, payment requirements and reimbursement limits vary by card.

For example, the American Express Platinum Card currently includes:

If your flight is delayed by four hours or more, enjoy up to $1,000 in coverage for essential expenses like lodging, meals, and sundry items. Simply charge your airline ticket to your card to activate this benefit. Conditions apply.

Before making purchases during a delay, check your Certificate of Insurance and keep your receipts and documentation.

Your credit card insurance is also separate from your rights under Canada’s Air Passenger Protection Regulations. Depending on the cause and length of the disruption, an airline may have obligations to provide food, drinks, communication, accommodation or transportation.

If a delay is expected to extend overnight and qualifies for assistance under the regulations, the airline may be required to provide hotel or comparable accommodation and transportation to and from the accommodation.

That means your first step during a major delay should be to determine what the airline is required to provide before assuming the expense needs to be claimed through your credit card insurance.

Lost or Delayed Baggage Insurance

Some credit cards provide separate coverage for delayed baggage and lost or stolen baggage.

Baggage delay insurance generally helps reimburse eligible emergency purchases when your checked baggage is delayed for a specified period. Lost or stolen baggage insurance can provide separate coverage when baggage or personal belongings are lost or damaged while in transit.

For example, the American Express Platinum Card currently includes:

Get up to $1,000 in coverage for emergency purchases of essential items if your checked baggage is delayed by six or more hours on your outbound trip. Just book your flight with your card, and shop worry-free for what you need. Conditions apply.

It also includes:

Protect your belongings with coverage of up to $1,000 per trip for lost or damaged checked and carry-on baggage when you charge your airline tickets to your card. Enjoy peace of mind knowing your personal items are covered while you’re in transit. Conditions apply.

Credit card insurance isn’t necessarily your only recourse. Airlines also have obligations relating to lost, damaged and delayed baggage.

Report missing or damaged baggage to the airline promptly and keep receipts for reasonable replacement expenses. Depending on the circumstances, you may need to make a claim with both the airline and your credit card insurer.

Always check the applicable deadlines for submitting a baggage claim.

Car Rental Insurance

Anyone who has rented a car knows how quickly optional insurance at the rental counter can increase the total cost.

Credit card rental car insurance can be valuable, but it’s important to understand exactly what it covers before declining insurance from the rental company.

For example, the American Express Platinum Card currently includes:

Enjoy automatic coverage for car rental theft and damage when you charge your rental to your card and decline the rental company’s insurance. With protection for vehicles valued up to $85,000, you can save $16–$23 daily on insurance fees while traveling. Conditions apply.

Rental car theft and damage coverage should not automatically be treated as complete rental car insurance. Third-party liability is a separate consideration, and coverage varies by credit card, rental agreement and your own auto insurance.

In British Columbia, ICBC currently includes Rental Vehicle coverage with its RoadStar and Roadside Plus packages. ICBC advises drivers to check the limits and eligibility of their coverage before renting.

Before declining any rental company coverage:

• Read your credit card’s Certificate of Insurance
• Check the maximum eligible vehicle value and excluded vehicle types
• Confirm how the rental must be paid for
• Confirm whether you’re required to decline the rental company’s collision damage waiver
• Determine separately how you’re covered for third-party liability
• Check whether your personal auto policy provides additional rental vehicle coverage

Don’t assume that paying with a premium credit card automatically means every rental-related risk is covered.

Travel Accident Insurance

Travel accident insurance can provide accidental death and dismemberment coverage when travelling on an eligible common carrier, subject to the card’s coverage requirements.

Coverage amounts vary by card, and you may need to charge the eligible fare to the card for coverage to apply.

For example, the American Express Platinum Card currently includes:

Travel with confidence knowing you’re covered by up to $500,000 in Accidental Death and Dismemberment insurance when you charge your fare on a common carrier to your card. Coverage extends to you, your spouse, dependent children under 23, and even supplementary cardholders and their families. Conditions apply.

Check your Certificate of Insurance for the exact definition of an insured person, common carrier and eligible trip.

Credit Card Travel Insurance In Canada Considerations

Credit card travel insurance can be complicated because each type of coverage has its own definitions, eligibility requirements, exclusions and maximums.

The most important thing you can do before travelling is read the current Certificate of Insurance for your card. Don’t rely solely on a card comparison, marketing page or an article like this one when deciding whether you have sufficient coverage for a specific trip.

Pay particular attention to how the trip must be paid for, who qualifies as an insured person, the maximum number of covered travel days, age restrictions, pre-existing medical condition clauses, claim deadlines and coverage limits.

• Payment requirements: Some benefits require eligible travel costs to be charged to the card. The exact requirement varies by benefit and card.
• Reward travel: Don’t assume an award booking is automatically covered or excluded. Check how your Certificate of Insurance defines an eligible trip and what portion of the fare, taxes or fees must be charged to the card.
• Emergency medical coverage: Confirm whether your card includes actual emergency medical insurance, how many consecutive days are covered and whether age restrictions apply.
• Who is insured: Coverage may extend beyond the primary Cardmember, but definitions for spouses, dependent children, supplementary Cardmembers and travelling companions vary.
• Pre-existing medical conditions: Read the definition and stability requirements carefully. The Government of Canada specifically recommends asking your insurer to explain limitations or restrictions relating to pre-existing conditions before travelling.
• Trip length: Make sure your entire trip falls within the maximum number of consecutive covered days.
• Coverage limits: Check both per-person and per-trip limits where applicable.
• Claim procedures: Keep receipts, tickets, itineraries, airline notices and other documentation that could be required if you need to make a claim.
• Other insurance: Your credit card coverage may overlap with airline obligations, employer insurance, provincial coverage, personal travel insurance or auto insurance. Understand which coverage applies before relying on one policy alone.

Credit Card Insurance In Canada: Bottom Line

Don’t assume you’re insured just because you have a premium travel credit card.

Credit card travel insurance can provide valuable emergency medical, trip cancellation, trip interruption, flight delay, baggage and rental car coverage, but every card has its own limits, eligibility requirements and exclusions.

Before travelling, read the current Certificate of Insurance for your card and make sure the coverage is appropriate for your destination, trip length, age, health circumstances and travel arrangements.

The Government of Canada recommends having travel health insurance before leaving Canada because provincial and territorial health plans may cover only a small portion of medical expenses abroad, or none at all.

If your credit card coverage leaves gaps, consider supplementary travel insurance before you leave.