How to Switch Travel Insurance Policies Before Your Trip as a Canadian

arafaaFebruary 7, 2025

0 124 4 minutes read

Travel insurance is an essential safeguard for Canadian travelers, protecting against unforeseen events like medical emergencies, trip cancellations, or lost luggage. However, circumstances can change before your trip—whether it’s discovering a better policy, changes in your health, or adjustments to your travel plans. If you find yourself needing to switch travel insurance policies before your departure, it’s crucial to do so carefully to avoid gaps in coverage or financial penalties. This guide will walk you through the steps to switch travel insurance policies seamlessly and ensure you’re fully protected.

Why Consider Switching Travel Insurance Policies?

Before diving into the process, it’s important to understand why you might want to switch policies:

Better Coverage: You may have found a policy with more comprehensive benefits, such as higher medical coverage limits or additional perks like rental car protection.
Lower Premiums: A different provider might offer similar coverage at a lower cost.
Health Changes: If your health status has changed since purchasing the original policy, you may need a plan that accommodates pre-existing conditions.
Extended or Altered Travel Plans: Changes in your itinerary, such as adding destinations or extending your trip, may require updated coverage.
Unforeseen Discounts: You might discover group discounts, loyalty programs, or promotions from another insurer.

Step 1: Review Your Current Policy

The first step is to thoroughly review your existing travel insurance policy. Pay close attention to:

Coverage Details: What is included (e.g., medical emergencies, trip cancellation, baggage loss)?
Exclusions: Are there any limitations or scenarios not covered?
Cancellation Terms: Check whether your policy allows cancellations and under what conditions.
Refund Policy: Determine if you’re eligible for a refund if you cancel before your trip.
Effective Dates: Ensure you know when your current coverage begins and ends.

If anything is unclear, contact your insurer’s customer service for clarification.

Step 2: Research New Policies

Once you’ve assessed your current policy, explore alternative options that better meet your needs. Here’s how to approach this step:

Compare Providers: Use online comparison tools like RATESDOTCA, InsureMyTrip, or Kanetix to evaluate multiple insurers.
Assess Coverage Levels: Look for policies that align with your travel plans, including:
- Medical coverage limits (aim for at least $5 million for international travel).
- Trip cancellation and interruption coverage.
- Emergency evacuation and repatriation.
- Coverage for adventure activities or high-risk sports.
Check for Pre-Existing Conditions: Ensure the new policy covers any pre-existing medical conditions.
Read Reviews: Research customer feedback and ratings to gauge the insurer’s reliability and claims process.
Look for Discounts: Some insurers offer discounts for seniors, families, or frequent travelers.

Step 3: Avoid Gaps in Coverage

One of the biggest risks when switching policies is leaving yourself uninsured during the transition. To prevent this:

Apply for the New Policy First: Secure approval for the new policy before canceling your old one.
Ensure Overlap: Keep both policies active for a short period to ensure continuous coverage until the new policy is confirmed.
Verify Activation Dates: Double-check that the new policy’s effective dates align with your travel plans.

Step 4: Cancel Your Old Policy Properly

Once you’re confident in your new policy, take the following steps to cancel your old one:

Review the Cancellation Policy: Check your current policy for terms regarding refunds and cancellations. Some insurers may offer partial refunds if canceled before the trip.
Submit a Written Request: Contact your current insurer and formally request cancellation. Keep a copy of all correspondence for your records.
Stop Automatic Payments: If you set up automatic payments, cancel them to avoid being charged for a policy you no longer need.
Request a Refund (if applicable): If eligible, ask for a refund of unused premiums. Be aware that some insurers charge administrative fees for cancellations.
Confirm Cancellation: Obtain written confirmation that your policy has been terminated.

Step 5: Disclose Changes Honestly

When applying for a new policy, be transparent about any changes in your health, travel plans, or other factors that could affect coverage. Failing to disclose relevant information could result in denied claims later. For example:

Inform the insurer if you’ve developed a new medical condition.
Update your itinerary if you’ve added destinations or extended your trip.
Declare any high-risk activities you plan to engage in (e.g., scuba diving, skiing).

Step 6: Understand the Fine Print of the New Policy

Before finalizing the switch, carefully read the terms and conditions of the new policy. Pay attention to:

Pre-Existing Condition Clauses: Some policies exclude coverage for conditions diagnosed within a specific timeframe before purchase.
Coverage Limits: Ensure the policy provides adequate protection for your needs, especially for medical emergencies abroad.
Exclusions: Understand what isn’t covered, such as certain countries, activities, or incidents related to alcohol or drug use.
Claim Process: Familiarize yourself with how to file a claim and what documentation is required.

Tips for a Smooth Transition

Act Early: Don’t wait until the last minute to switch policies. Give yourself ample time to research, apply, and confirm the new coverage.
Work with a Broker: An independent insurance broker can help you compare policies and navigate the switching process.
Keep Records: Save copies of all correspondence, policy documents, and receipts related to both your old and new policies.
Check Provincial Programs: Some provinces, like Ontario, offer basic out-of-country medical coverage. While these programs are limited, they can complement private travel insurance.
Consider Single-Trip vs. Multi-Trip Policies: If you travel frequently, a multi-trip policy may offer better value than purchasing single-trip coverage each time.

Common Mistakes to Avoid

Switching Without Confirmation: Never cancel your old policy until the new one is fully activated and confirmed.
Overlooking Exclusions: Failing to read the fine print can lead to unpleasant surprises during a claim.
Underestimating Coverage Needs: Opting for the cheapest policy may leave you underinsured in critical areas like medical emergencies.
Ignoring Refund Policies: Not understanding your current policy’s refund terms could result in unnecessary losses.