Survey results: How does travel insurance shape trip plans for Canadians?
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Alyssa Prizzon, Content Marketing Strategist
Travelling is an exciting time for many Canadians. Choosing a destination, planning activities and booking flights are all part of preparing to go abroad. Securing the right travel insurance coverage is another essential step when planning a trip, but not all travellers give it the attention and consideration it deserves. Some rely on credit card coverage, while others skip a policy altogether.
To understand how travel insurance factors into Canadians’ trip planning decisions in 2026, Ratehub partnered with SoNomad to conduct a travel survey. The data revealed that Canadians are inconsistent with their purchasing behaviour, but medical coverage is the number one reason Canadians choose to buy travel insurance. 44% of travellers have experienced a travel emergency or disruption on a trip, with nearly half of those (49%) being a medical emergency or illness. Let’s break down the key survey findings for how Canadians plan to include travel insurance in their 2026 plans.
Key takeaways
- Ratehub surveyed more than 200 Canadians to understand the role that travel insurance plays in trip planning.
- The majority of Canadians (61%) purchase travel policies for medical coverage, although it depends on the trip destination, cost, and the traveller’s health status.
- Many survey respondents believe standard travel policies include more coverage than they do, and most opt out of purchasing coverage if they have insurance through credit cards.
- 44% of respondents have experienced a medical emergency abroad. While the majority were insured (68%), those without coverage (32%) had to pay out of pocket, in some cases up to $10,000. 35% paid less than $500 out of pocket.
- For the most part, past travel experiences have not influenced the way Canadians buy insurance. However, some respondents (48%) say they now read their policies in more depth, and 52% say they now compare options before buying a policy.
- With more education about what travel insurance includes, it’s likely that securing coverage will become a standard practice for Canadians.
How often do Canadians purchase travel insurance?
The survey findings show that the majority of Canadians, 41%, only purchase travel insurance sometimes, depending on the destination of their trip and the total trip cost. 35% always make it a point to buy insurance, and 24% never do.
Do Canadians buy insurance for domestic trips?
When travelling within the country, travel insurance is often skipped. Just 25% of respondents say they buy insurance when travelling in Canada, the other 75% do not.
Opting to pass on travel insurance for domestic trips is fairly common for a few reasons. The primary one is that as long as you have a health card in your home province, you will get medically necessary care anywhere across Canada. This is often reason enough to skip paying for additional coverage. However, it’s essential to remember that some services, like ambulance rides, won’t be covered out of province. Secondly, many Canadians have other forms of coverage, like trip cancellation insurance through their credit card. But coverage is limited, so it’s important to make sure you have enough to cover your entire trip. The bigger and more expensive your trip is, the more likely it is that your credit card coverage will not be enough.
Also read: Do you need travel insurance within Canada?
What is the primary reason Canadians buy travel insurance?
61% of respondents listed coverage for medical emergencies while travelling as the primary motivator for buying a travel policy. 22% cited peace of mind and reduced stress, 8% said protection against trip cancellations or delays, 4% said protection for non-refundable expenses, including flights, hotels and activities, while 1% cited reimbursement for lost luggage. The remaining 4% cited other reasons, such as topping up coverage beyond credit card limits.
What factors influence Canadians’ decisions to buy insurance?
When it comes to what influences Canadians travellers to buy protection, 65% said the trip destination, 49% said their age or health status, 37% said the length of the trip, 30% said the cost, 17% said past travel experiences, 16% said the activities planned for the trip and 8% said recommendations from a travel agent or booking site.
Which coverages do Canadians expect to be part of a standard travel policy?
Respondents answered they expect the following coverage options to be included in a standard policy: emergency medical expenses abroad (92%), trip cancellation for any reason (64%), lost or delayed baggage (60%), flight cancellation due to an airline strike (55%), pre-existing medical conditions (45%) and rental car damage (36%).
Generally, pre-existing conditions and rental car insurance are not included in standard travel insurance policies. Instead, travellers would need to purchase additional coverage to be protected. Medical expenses, lost baggage, and trip cancellations typically are included in standard coverage plans. However, limitations may apply. For example, trip cancellation insurance is usually included only in comprehensive travel policies, and flight cancellations due to an airline strike are generally covered only if the policy was purchased before the strike was announced.
Your credit card may provide rental car coverage, but it is often recommended when travelling internationally to purchase coverage directly from the rental company to avoid any logistical headaches in the event of a claim.
Which coverage options are most important to Canadians?
When asked to rank travel insurance coverage from most to least important, Canadians ranked rental car coverage the highest, with baggage protection, trip cancellation and travel accident insurance not far behind. Trip interruption insurance and the ability to cancel for any reason were ranked as less important.
Have Canadians ever regretted not getting coverage?
Surprisingly, 53% of Canadians say they have never regretted not purchasing travel insurance. Only 11% said they regretted not getting coverage, and it cost them money out of pocket. 36% said they always purchase coverage and have no regrets.
Also read: Is travel insurance worth it?
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Have Canadians ever experienced a travel emergency or disruption while travelling?
Yes, 44% of respondents said they have experienced a travel emergency, with 56% citing no such event. When asked what the primary issue they faced was, 49% said it was a medical emergency or illness, 28% said flight cancellations or delays, 9% said natural disasters or weather events, 1% said lost or stolen baggage, and 13% cited other reasons, including stolen passports and rental car damage.
When asked if they had insurance at the time of the incident, 68% said yes and 32% said no. For respondents without insurance, most indicated they paid out of pocket to cover the losses. Here is how those payouts broke down:
- 35% were required to pay less than $500 out of pocket
- 25% resolved the issue without cost
- 23% paid between $500 and $1,000
- 12% between $1,000 and $5,000
- 6% between $5,000 and $10,000 out of pocket
What’s the primary reason why Canadians would skip buying coverage?
The vast majority (73%) cited having travel coverage through their credit cards as the primary reason why they don’t buy insurance, with 16% saying they don’t see the value in travel insurance, 6% saying it’s too expensive, and 4% being unsure where to buy it.
When asked whether they believe credit card coverage offers the same level of protection as standalone travel insurance, 54% said credit cards are more limited, 23% don’t know the difference, 15% said they provide identical coverage, and 8% don’t know if their credit card includes travel protection.
While many credit cards have built-in travel insurance, coverage is often limited. Purchasing a separate policy ensures you have added protection that fills coverage gaps.
Have past travel experiences shaped how Canadians approach travel insurance?
More than two-thirds of respondents (69%) answered no to this question, with just 31% saying yes. When asked how their approach has changed, 52% said they’re more price-conscious and will compare options before buying a policy, 48% said they read policy details more carefully, 28% said they buy more comprehensive policies, 25% said they buy coverage for every trip, and 13% responded with other approaches, including upgrading credit cards to increase coverage.
If you’re planning your next trip, it’s always worthwhile to compare travel insurance quotes to not only find your lowest rate, but to ensure you find a policy that offers the coverage you need. Spending time to research before purchasing coverage ensures you’re adequately protected while on your vacation, and it’s often more affordable than you might think.
The bottom line
The survey found that most Canadians will purchase travel insurance for its medical coverage. However, decisions to buy a policy depend on factors such as the trip destination and cost. We found that respondents assume standard travel insurance covers more than it does, and will opt out of a policy if they have protection through credit cards. For travellers who experienced an emergency while abroad, most had coverage, though those without coverage needed to pay out-of-pocket in some cases up to $10,000. While most respondents say their past experiences have not shaped their future approach to travel insurance, some said they are now more price-conscious and will read their policy details more closely.
Travel insurance plays a small role in how Canadians plan their trips. With more education about which coverages are included and excluded from policies, it’s likely insurance will become non-negotiable when travelling abroad. Especially with the ongoing challenges and disruptions the travel industry continues to face. You can learn more about your travel insurance options today on Ratehub.ca.