Travel insurance — do you really need it?

July 21, 2025 | 3-minute read

Whether it’s a weekend getaway by yourself or a six-week sojourn with your family, travel is something to look forward to. But it can also be costly. You might even be wondering whether the added expense of travel insurance is worth it. After all, why spend money on coverage that may go unused? 

To help answer that question, let’s look at the expenses that travel insurance is designed to cover and the potential cost of not having coverage. 

Accidents and illness can affect anyone anytime, even individuals who are young and healthy or experienced travellers. Canadian residents are covered for certain medical expenses by their provincial government’s health plan. However, it's a different story once you leave the country or your province. Most hospitals around the world charge foreigners for unexpected medical and dental treatments, and if you need hospitalization while you’re travelling, you can get stuck with a steep bill.

How steep? According to MIT Health, a three-night stay in a U.S. hospital averages US$30,000.¹

Emergency medical travel insurance helps to cover not only the cost of an unexpected hospital stay but also may cover visits to a doctor, transportation by ambulance, emergency dental care, x-rays, medication and more, all of which can add up quickly.

Picture this scenario: Your flight is booked, your hotel room reserved and your itinerary set. Everything is paid for, and now you’re just looking forward to your departure. But what if a family emergency comes up and you have to cancel your trip? You could lose all the money you’ve already invested in your vacation. 

Trip cancellation helps to protect you from situations like the above. If you need to cancel your trip because of illness or injury, a death in the family, a visa delay or any other covered reason, your coverage will refund some or all of your prepaid non-refundable costs.

Trip interruption insurance helps to protect you if you have to cut your trip short for similar reasons. It may cover not only your prepaid non-refundable expenditures but also the cost of a last-minute flight home. 

We’ve all been there. You arrive at your destination ready to hit the beach, but your baggage — including your swim trunks — is nowhere to be found. Losing your baggage can be not only stressful but also costly, especially if you’re travelling with high-end sporting equipment or medical devices.

Travelling with kids? It’s a wonderful family adventure, but if you land in the hospital unexpectedly it can be challenging to find someone to care for them when you’re far from home.

Coverage for dependent care helps ease the burden, providing funds for caregiving while you’re laid up. Some plans even provide coverage for pets!

So is travel insurance worth it? It may seem like an unnecessary expense, but trip coverage is really just a modest investment that shields you from the financial repercussions of medical emergencies and other unexpected events. The true worth lies not in its price but in knowing you have support to help you get through a stressful situation in a foreign land.

¹ Healthcare in the United States: The top five things you need to know | MIT Health