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A cup of coffee a day? Your travel insurance might be cheaper

May 15, 2023
4 mins
Friends hanging out at the park and sitting on the swings

Planning a trip can be expensive – there’s flights, hotels, meals, and excursions that need to be budgeted for.  And don’t forget your travel insurance!

Travel insurance protects you from all sorts of unfortunate surprises that could ruin your trip, and possibly even your financial future.

It can help defer the costs of missing connecting flights, lost baggage, and theft. Without travel insurance, you could be out of pocket for anywhere between a few hundred to thousands of dollars.

Moreover, in the event of a medical emergency, the price tag could skyrocket. RATESDOTCA insurance data from 2019 highlighted that insurance providers paid out a cool $33,000 for an emergency – a broken arm – to a customer vacationing in Mexico.

Needless to say, with more severe accidents or prognosis, the bill would only get higher.

Any of these situations would put a damper on your holiday, but having travel insurance could ease some of the stress, emotional distress, and financial burden.

As per a RATESDOTCA study,  a 30-year-old woman with no pre-existing medical conditions can get a month-long $50,000 travel insurance coverage for as low as $43 CAD. (Quotes are subject to change and may vary depending on your personal details.)

Here's a list of everyday items that can easily cost more than travel insurance.

Five things that are more expensive than travel insurance

With a generous budget of $50, here are five things that you spend more money on annually than travel insurance:

  1. Your daily caffeine fix: At roughly $4 for a medium drip coffee, a daily coffee habit will add up to more than the cost of travel insurance after just 11 cups. And we’re not even talking about lattes or cappuccinos.
  2. Subscriptions: Most of us have subscriptions to music and media streaming, meal plans, or gym memberships. Pausing these services for a month may be enough to cover the cost of your travel insurance.
  3. Delivery fees: The convenience of ordering food to your front door comes at a cost of around three dollars per transaction. Ordering food once a week for four months, give or take, would cost you around $50 in delivery charges alone. May we suggest walking over to pick up your order during the nicer months?
  4. Parking at event venues: Parking rates at sporting events or concert venues can be ridiculously expensive. Take public transit to go to and from events and save your money, as well as your rage from having to circle the lot for an empty spot.
  5. A 3D movie: As of writing, a pair of tickets to a 3D movie costs $42.96 total — exactly as much as insurance premium for our example traveler. Throw in a medium popcorn and a soft drink, and your date night could cost you much more than a month of travel insurance coverage.

Consider cutting back on a few of these small luxuries and use your savings to purchase travel insurance instead. Afterall, no one likes being stuck with a gigantic medical bill.

Choosing the right travel insurance

When selecting a travel insurance policy, it is very important to consider the nature of your trip. If you’re considering excursions during your trip, you should note that some activities such as parasailing and scuba diving may be excluded. It is best to check with the insurance provider before completing your purchase.

However, while selecting a policy, you should ask yourself the following questions:

  • Where are you travelling?
  • How long will you be travelling for?
  • Will you be travelling again within the same year (should you opt for multiple trips or a year-round policy)?
  • Are you leaving for a season or longer?
  • Will you need a trip cancellation policy?
  • Are you renting a car?
  • Is there a risk of severe weather (hurricane season, typhoons etc.)?
  • Do you have any pre-existing medical conditions that you should be declaring to the insurance provider?
  • Will you be partaking in adventure activities?

Compare rates and choose the policy that best suits the type of trip you’re taking. Some features to look for are trip protection, trip cancellation, medical coverage, and phone support. Some providers offer a 24/7 helpline in case you aren’t sure what to do in the event of an emergency while in a foreign country.

Submitting an insurance claim

If you find yourself having to file a claim, the process is usually straightforward. Collect, and make copies of all receipts, reports, and other documentation supporting your claim. Then, call the insurance provider's support line or fill out the forms online.

Submit your claim with all supporting material, which may include a statement issued by the airline as proof of lost luggage, a police report, or medical bills. The claim form should list the documentation that is required.

Once your form is returned to the insurance provider, they will assess your claim or request additional information. After their investigation concludes, you should be issued a reimbursement within a few weeks, however, each situation is unique.

Compare rates

Willing to spend a date night in or give up a few lattes in exchange for some peace of mind?

A couple of dollars a day could end up saving you hundreds, if not thousands of dollars in the event of an emergency. With RATESDOTCA you can compare cheap travel insurance quotes and be prepared for your next trip.

Bon voyage!

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Don't waste time calling around for travel insurance

Use RATESDOTCA to shop around, and compare multiple quotes at the same time.

Finding the best travel insurance coverage has never been so easy!

Hayley Osmond

Hayley Osmond is an editor and writer in the personal finance space, where she uses her eight years of media and marketing experience to bring content to life. She specializes in money products, including mortgages, home and auto insurance, and credit cards. Hayley holds a Broadcast Journalism diploma from Sheridan College and was awarded the Shaw Media Journalism and Media Award for graduating at the top of her class. Her work has appeared in Global News and diverse digital corporate training materials behind the scenes.

Hayley is passionate about making complex subjects, such as home buying and financial literacy, concise and intriguing. Her work has garnered media coverage from The Globe and Mail, blogTO, Yahoo! News, and CityNews 680 and has been syndicated across other publications.

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