Survey reveals what Canadians get wrong about travel insurance

New survey data suggests many Canadians are travelling with a false sense of security about their medical and trip protection, revealing widespread confusion about when travel insurance is needed and what it actually covers.

Surveys show confidence, but limited understanding

Recent polling of Canadian travellers points to a striking gap between confidence and comprehension when it comes to travel insurance. Research released by regional automobile associations and financial institutions indicates that while a clear majority of Canadians describe travel insurance as “essential,” far fewer can accurately explain what is included in a typical policy or say they always buy coverage for their own trips.

One consumer survey cited by CAA North & East Ontario reported that more than 70 per cent of respondents did not fully understand how travel insurance works, even as most agreed it was important to have. Yet a significant share said they still skipped coverage, particularly for short breaks or trips within Canada, treating insurance as an optional add-on rather than part of the basic cost of travel.

Similar findings emerged from polls commissioned by major insurers, including TD Insurance, which reported in 2024 that only about one third of Canadians planning to travel intended to purchase both emergency medical coverage and trip cancellation or interruption protection. The rest either relied solely on one type of coverage, assumed they were covered through another source, or did not plan to buy travel insurance at all.

Industry-sponsored travel studies for 2025 and 2026 further suggest that economic pressure and rising travel costs are prompting some Canadians to trim or drop insurance in order to keep trips affordable. Analysts say that tension is encouraging riskier choices just as healthcare and disruption-related expenses remain high in many destinations.

Domestic travel emerges as a blind spot

While many Canadians recognize the need for coverage when travelling abroad, survey data shows a different mindset for trips closer to home. Polling conducted on behalf of banks and insurers indicates that less than half of travellers planning domestic journeys outside their home province intend to buy dedicated travel medical insurance.

Reports summarizing those surveys point to a widespread belief that a provincial health plan will cover most medical expenses anywhere in Canada. Earlier research by organizations such as the Travel Health Insurance Association has found that a large share of Canadians either never buy travel insurance for out-of-province trips or do so only occasionally, often citing confidence in public health coverage as the reason.

In practice, publicly available information from health authorities and consumer groups notes that provincial plans typically cover only a portion of emergency medical costs incurred outside a traveller’s home province, and rarely cover related expenses such as ground or air ambulance, prescription drugs, or medical repatriation. Those gaps can leave travellers facing substantial bills even after basic hospital care is reimbursed at interprovincial rates.

Insurance and consumer advocates say the combination of short trip durations, familiarity with domestic destinations and assumptions about universal healthcare contributes to a pattern of underinsurance for weekend getaways, road trips and interprovincial visits. Surveys suggest many travellers only discover the limits of their coverage after an unexpected illness or accident.

Credit card and workplace coverage often misunderstood

Another recurring theme in survey findings is confusion about secondary sources of protection. Polling conducted on behalf of financial institutions indicates that many Canadians believe credit cards or employer benefit plans provide comprehensive travel insurance, when in reality these products often come with strict conditions and caps.

Consumer-facing explainers from banks and industry groups highlight several common misconceptions. Some credit cards provide only limited emergency medical coverage, or require that the entire trip be charged to the card before benefits apply. Others offer trip cancellation and interruption insurance but not medical protection, or restrict eligibility based on age, length of trip or pre-existing medical conditions.

Employer-sponsored health benefits can also create a false sense of security. Surveys of plan members have found that relatively few can identify the maximum payout for out-of-country care or the duration limits on travel medical coverage. Publicly available plan documentation frequently lists maximums that could quickly be exceeded in a serious medical emergency in high-cost destinations such as the United States.

Advisers who analyze these products note that credit cards and workplace plans can be helpful pieces of the protection puzzle, but usually do not replace a dedicated travel insurance policy tailored to the specifics of a trip. Survey data suggests that many Canadian travellers are not aware of those nuances when deciding whether additional coverage is necessary.

Short trips and cost-cutting drive risky decisions

Polls conducted since 2024 also point to a behavioural pattern: the shorter the trip, the less likely Canadians are to insure it. Surveys commissioned by associations and insurers report lower purchase intentions for weekend city breaks, cross-border shopping excursions and brief domestic holidays compared with longer international vacations.

Respondents commonly cited cost-cutting as the reason for skipping or downgrading coverage, particularly in an environment of higher airfares, hotel rates and everyday expenses. Some survey commentary notes that travellers appear to be trading off perceived low probability of an emergency against the immediate, visible cost of a policy, especially for trips lasting only a few days.

Researchers who study consumer behaviour around insurance suggest this pattern is consistent with broader findings that people tend to underinsure against low-probability, high-impact events. In travel, that can translate into uncovered medical bills, non-refundable reservations or emergency transport costs that far exceed the price of a policy.

Industry data also indicates that even on short trips, claims can quickly become expensive, particularly when they involve emergency care, hospitalization or evacuation from remote regions. For Canadian travellers visiting the United States, where healthcare prices are among the highest in the world, the potential financial exposure is significantly larger than many survey respondents estimate.

Knowledge gaps shape the travel season ahead

As Canadians plan trips for late 2025 and into 2026, survey results suggest that attitudes toward risk and coverage will continue to influence travel behaviour. Vacation intention indexes compiled by research firms such as Ipsos on behalf of global insurers show that many households are adjusting itineraries and budgets, but remain reluctant to forego travel entirely.

Within that context, analysts say the persistent misunderstandings around travel insurance could have real consequences. Reports summarizing recent polling emphasize that large portions of the travelling public either underestimate potential costs, overestimate the protection provided by public health plans and credit cards, or assume that domestic trips are effectively risk-free from an insurance standpoint.

Consumer organizations and industry groups have responded by publishing more detailed guidance on what standard policies do and do not cover, along with checklists that encourage travellers to review existing benefits before they leave home. Whether those efforts will significantly shift behaviour is not yet clear, but the latest surveys indicate that many Canadians still have more to learn about how travel insurance fits into their overall trip planning.