This article has been updated from a previous version.
Trips aren’t cheap. According to a recent study by Allianz Global Assistance Canada , anticipated vacation spending is expected to clock in at an average of $4,012 per Canadian household in 2025.
If you’ve got a big expensive getaway in the plans, the last thing you want is to have to shell out more — especially if you’ve already purchased travel insurance. However, claims can be denied over a misunderstanding with your policy. Know before you go: Here are some of the most common reasons for denied claims and how you can prevent an out-of-pocket expense.
1. Routine and preventative healthcare
Most travel insurance plans are designed to cover sudden emergencies like broken bones or sudden illnesses. However, routine healthcare — like a standard checkup — is excluded. If you have an upcoming routine medical checkup, schedule your appointment before or after your vacation.
For those with a pre-existing medical condition that resulted in a doctor’s visit or procedure prior to your trip, make sure you declare these when you apply for travel insurance. Failing to disclose accurate health details can result in claim denials.
Related: Does your car insurance cover you when travelling out of province?
2. Cancelling your trip for an uninsured reason
Travel insurance policies typically have a list of reimbursable reasons for cancelling your trip, such as death or severe illness.
However, if you end up cancelling for other reasons, such as a sudden job interview, your travel insurance may not cover your cancellation costs. If flexibility is essential to you, seek out “cancel for any reason” (CFAR) coverage. While CFAR comes at a slightly higher premium, it offers unparalleled freedom to cancel your plans with fewer restrictions.
3. Claims made outside listed dates and locations
When purchasing a travel insurance policy, you will need to provide the specific dates and countries you plan on visiting. If you become injured or ill before or after the dates listed on your policy, your travel insurance company will likely deny your claim.
The same is true if you are travelling within a country you failed to mention in your policy application. When signing up for travel insurance, be sure to provide all the requested travel information accurately.
4. Injuries occurring while intoxicated
Having a few drinks can be a fun way to kick off your vacation, but make sure to maintain self-control. Many travel insurance policies have an "alcohol exclusion," where the provider can deny claims for injuries that took place while the insured person was intoxicated.
So, if you have a few drinks and then slip while lounging around the pool, you might have to pay the hospital bill out of pocket. Stay mindful of your limits to avoid both safety hazards and coverage complications.
Related: Insurance considerations when travelling with friends
5. Late or improper claim filing
Travel insurance policies typically have specific claims requirements. You'll need to provide all the necessary paperwork within the time period listed on your policy. If you wait too long to file a claim or don't have documents to support it, the travel insurance provider may decide to deny you coverage.
If you have lost baggage, significantly delayed flights, or an unexpected trip to the emergency room, be sure to collect documents as evidence. You don't want the insurance company to deny your claim just because you forgot to compile the paperwork.
6. High-risk activities without extra coverage
If you're planning to go on excursions like mountain climbing, bungee jumping, or deep-sea diving, any resulting injuries might be excluded from your travel insurance policy. Most travel plans specifically exclude high-risk activities from their coverage.
Consider buying additional high-risk coverage if you plan to take part in extreme sports. Sure, you'll have to pay a bit more, but it’s well worth it for the peace of mind.
Since health care costs can skyrocket outside Canada – particularly in the U.S. – purchasing travel medical insurance will minimize your financial risk. Even a minor ailment can result in thousands of dollars in bills. For international travelers, trip interruption and cancellation insurance can safeguard against disruptions.
Travel insurance policies and credit cards with travel insurance have a wide range of coverage options at affordable rates. Before you take off, be sure you understand what your policy covers and excludes so you can have a worry-free vacation.
Read next: Will travel insurance cover a trip that was booked with rewards points?
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