While preparing a budget for trips, one cost you should always factor in, as someone who resides in Toronto, is travel insurance. The importance and usefulness of travel insurance often fly under the radar. Insurance prepares you for the unknown and nothing creates unknown like travel.
One thing you should know is that there is no fixed benchmark for travel insurance pricing in Toronto. The cost you incur for travel insurance may be different from that of your neighbour. Also, there are some factors that will influence pricing. In this article, we will take a closer look at what travel insurance is, and how much it will cost you in Toronto. More importantly, we will explain the factors that determine the cost of travel insurance in Toronto and the GTA.
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What Is Travel Insurance?
Travel insurance is a type of insurance coverage that is designed to help cover the costs of unplanned expenses on a trip. Any unforeseen loss suffered while travelling is covered by travel insurance. Also, you should know that travel insurance can be put into two broad categories.
Travel cancellation insurance
This is an insurance coverage plan that caters to your losses when your travel plans get cancelled. Under this plan, there are underlying elements, which include:
- Trip cancellation: This insurance is activated in the case where you need to cancel a pre-paid trip. A portion of the money you paid is returned.
- Trip interruption: This kicks in if while on a trip, there is an emergency you need to tend to, causing you to return home early. For instance, if there is a fire outbreak in your home, or there is a flood.
- Baggage: Some companies provide insurance against the loss of luggage or coverage in the case where your bags are delayed. In these cases, you may be reimbursed or compensated for the loss of your baggage.
- Emergency Medical Evacuation: There are several reasons why one can get sick. The trip cancellation insurance will cover your transport to a treatment center and back home.
Travel Medical Insurance
In Toronto, travel medical insurance covers the cost of health treatments incurred during a trip. In fact, it provides a more extensive cover for your health than the emergency medical evacuation insurance. The benefits of this insurance also transcend the needs of emergencies.
What Is The Cost Of Travel Insurance In Toronto?
Typically, the cost of travel insurance is about 4 -10% of the total amount you pay for the trip. For instance, if your trip costs you about $5000, your travel insurance policy will cost you between $250 – $500, in Toronto.
Travel insurance prices vary from place to place, but the influencing factors are the same. Primarily, your insurance pricing is a function of the cost of your travel. However, there are other factors insurance providers consider when determining insurance pricing.
This is a very critical factor when it comes to travel insurance pricing in Toronto. The higher the age of the person wanting to get the insurance policy, the more it will cost. For instance, if you are over 65, you can expect that your insurance rates would be higher than that of a 50-year old. Some insurance companies may allow you to have minors on your plan at no extra cost to you. For some companies, the rate for minors is reduced.
Number of Travellers
Basically, the higher the number of people travelling as well as the duration of travel, the pricier the travel insurance plan becomes. This is because with this increase comes a commensurate increase in the risk of unforeseen events cropping up. Travel insurance for someone travelling for just five days would surely cost less than for someone travelling for ten days.
Type of Coverage
There are several types of insurance coverage you can choose from. These different coverage plans are designed to cover different types of travel losses. Typically, there is a basic plan, which, as expected, costs less than other plans. Other higher scale plans cover benefits like the collision of rented cars.
Covering the cost of travel insurance in Toronto can protect you from having to cover unexpected expenses. As such, it is important that you include it in your plans when budgeting for your travel plans. Are you looking for reliable travel insurance coverage in Canada? Our experts will discuss your needs and provide you with adequate coverage. Contact us today!
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