What factors affect the cost of travel insurance?

Whether you're travelling internationally or to another province or territory within Canada, travel insurance can help protect you financially in case of eligible unexpected events. With the right travel insurance plan, you could be financially protected against eligible events that your employer, credit card, or provincial health plan may not fully cover. These can include:

• Unexpected medical emergencies while travelling
• Trip cancellations
• Trip interruptions 
• Damaged or lost baggage
• Baggage delays

Plan type: 

Travel insurance plans vary in price. The more comprehensive your travel insurance plan is, the more it will likely cost. When considering a travel insurance plan for your upcoming travels, it's important to find a plan that meets your travel needs. Some insurers offer features such as coverage for pre-existing medical conditions or trip cancellation and interruption coverage, which can typically increase the cost. You can also consider a single-trip plan for a one-time trip or a multi-trip plan if you plan to take more than one trip within a year.

Trip duration: 

The length of a trip is one of the main factors that can affect the cost of travel insurance. Shorter duration plans are often less expensive and are designed for vacations or short business trips. Longer duration plans (several weeks or months) are typically more expensive. The reason for this is because the insurance company is providing coverage for a greater period, which increases the likelihood that there may be a claim. Insurance companies calculate risk based on the amount of time they are responsible for providing coverage. Thus, the longer you're away, the more you'll likely pay.

Coverage level: 

Your existing travel insurance may cover fewer things than a comprehensive plan. Usually, the more coverage you want, the more you'll pay because the plan includes more features and a higher level of protection.   

Number of travellers: 

The number of people on your travel insurance policy can influence the total cost of coverage. While travelling solo may cost less, many insurance providers like TD Insurance Travel Insurance offer discounts for couples and families. It's worth comparing individual and group travel insurance plan options to find the best value for your travels.

Pre-existing medical conditions: 

If you have a medical condition, it can affect the cost of your travel insurance as your premiums are based on the likelihood of you needing care during your trip. While certain conditions may increase your premium, some conditions may also require additional medical information.

Your destination: 

Some insurers factor in your travel destination when calculating the cost of coverage. However, TD Insurance does not. Whether you’re travelling domestically or internationally does not impact the cost of travel insurance. 

That said, if you are heading to a country where the Government of Canada has issued an advisory—either "avoid non-essential travel" (level 3) or "avoid all travel" (level 4)—your travel insurance may not cover you or may be limited for any medical or non-medical claims. The only exception would be if the advisory is issued after your effective date as indicated in your confirmation of insurance, which can vary depending on your coverage.

Travel insurance plan add-ons: 

Many travel insurers also offer additional coverage options that can be added to your existing travel insurance plans. These could be additional coverage days (for a trip where you are away for a longer period of time than what your existing plan covers), lost or damaged baggage, or trip interruption or trip cancellation coverage. Selecting an add-on or top-up will increase the cost of your overall coverage.