Do Canadians Need Travel Insurance? Here's What Happens Without It

If you're a Canadian planning a trip to the United States, you might ask yourself: do I really need travel insurance? It's a fair question. After all, you're just going next door, and back home in Canada, you never worry about healthcare costs.

The reality is more nuanced than a simple yes or no. While travel insurance isn't legally required to enter the US, understanding what happens without it can help you make an informed decision about whether it's worth the investment for your trip.

Does Canadian Health Insurance Cover Me in the US?

Here's what most Canadians don't realize: your provincial health insurance provides extremely limited coverage when you travel outside Canada. And by limited, we mean it barely scratches the surface of what you risk if something happens while you’re in the United States.

Let's break down what your provincial plan actually covers:

Ontario (OHIP): As of January 1, 2020, OHIP eliminated coverage for out-of-country emergency care entirely. If you're traveling to the US from Ontario, your provincial plan provides zero coverage for medical expenses.

British Columbia (MSP): Provides up to $75 CAD per day for emergency hospital care outside Canada. In a US hospital where a single night can cost $10,000-$15,000 USD, that's less than 1% of actual costs.

Alberta (AHCIP): Covers up to $100 CAD per day for inpatient hospital services and $50 CAD per day for outpatient services outside Canada. Again, this barely makes a dent in US medical bills.

Quebec (RAMQ): Covers up to $100 CAD per day for hospital services and $50 CAD per day for outpatient services outside Canada. While slightly better than some provinces, this still covers only a tiny fraction of US healthcare costs.

Your provincial plan might help with a minor clinic visit if you're from BC, Alberta, or Quebec (Ontario provides no coverage at all), but for anything serious, you're essentially uninsured. The large coverage gap between what your province pays and what US hospitals charge is where travel medical insurance saves you from financial setbacks.

What Actually Happens Without Travel Insurance in the US

Let's walk through real scenarios that commonly happen to travelers to the US every year.

Scenario 1: A Simple Fall

You’re taking your family to New York for a week-long trip. Everything’s going great. As you’re sight seeing, you slip on ice and suspect you've broken your wrist. You head to an emergency room.

Without insurance:

• Emergency room visit: $2,500
• X-rays: $800
• Splint and wrap: $400
• Pain medication: $150
• Follow-up instructions: $200
• Total: $4,050 USD

If it covers anything, your provincial plan might cover $50-$400 of this. Unfortunately, that means you could be paying at least $3,650 out of pocket.

With travel insurance: You pay the deductible amount you chose when you bought your policy, and your insurance covers the rest. Plus, with the help of your insurance’s 24/7 assistance, you were directed to an in-network facility with pre-negotiated rates, potentially saving you money even before insurance kicks in.

Scenario 2: A Snowbird's Heart Pain

Imagine you're a 68-year-old Canadian spending winter in Florida. You experience chest pain and call 911.

Typical costs without insurance:

• Ambulance: $3,500
• Emergency room: $8,000
• Cardiac catheterization: $35,000
• Two-night hospital stay: $25,000
• Medications and supplies: $4,000
• Cardiologist fees: $5,500
• Total: $81,000 USD

After provincial reimbursement of approximately $1,000 CAD, you could face $80,000 in medical debt. This level of unexpected expense has forced some Canadians to deplete retirement savings, take loans against their homes, or sell property to pay medical bills.

With travel insurance: After meeting your chosen deductible, comprehensive coverage will handle the rest of the bill. Medical evacuation back to Canada (if medically advisable) is also covered, which alone can cost $50,000+. When purchasing your policy, simply enter your full travel dates (whether that's weeks or months), and you'll be covered for your entire stay.

Scenario 3: A Fun Getaway to Florida

You and your friends decided to get away and have a fun 5-day trip to Florida. You ate something wrong and now you realize you have food poisoning requiring IV fluids and anti-nausea medication.

Typical costs without insurance:

• Urgent care visit: $500
• IV fluids and treatment: $800
• Medications: $200
• Total: $1,500 USD

For a quick trip that was supposed to be some fun, an unexpected $1,500 medical bill is a significant hit. Your provincial plan might cover a little, or even nothing, depending on your province. That's potentially your entire weekend budget gone on a medical bill instead of enjoying your time with friends.

With travel insurance: A five-day policy for a 35-year-old costs approximately $6-$12. For the price of a coffee or two, you're protected from unexpected expenses that could derail your trip and budget, and you can go back to your trip like nothing happened.

The Hidden Costs That Catch Canadians Off Guard

Medical bills aren't the only expenses you face without coverage. Here's what else happens:

Upfront payment requirements

Many US hospitals require deposits before treatment for non-emergency care. Without insurance, you might need to provide $5,000-$10,000 upfront via credit card just to be seen.

Collection agencies and legal action

US hospitals will pursue unpaid bills aggressively. They can send your debt to collections, which affects your credit score in both the US and Canada, and may pursue legal action.

Travel disruptions & medical transportation home

If you're too ill to travel home as planned but can't afford continued medical care or a medical escort, you're stuck. Commercial airlines won't let you fly if you're too sick, and medical transport can cost $25,000-$100,000.

Family expenses

When someone needs to come down from Canada to help you, their travel, accommodation, and lost work time all add to the financial burden.

Lost trip costs

If you had to cut your trip short or couldn't participate in prepaid activities, those costs are gone without the trip interruption coverage that comes with many travel medical plans.

But Is Travel Insurance Really Worth It for Canadians?

This is the practical question most Canadians are really asking. Let's look at it from a value perspective rather than just a fear-based one.

The Math Makes Sense

Consider this breakdown for a two-week US vacation:

How much does travel insurance cost:

• Age 35: $35-$50
• Age 55: $60-$90
• Age 70: $150-$200

Cost of one emergency room visit: $2,000-$5,000+

Cost of hospitalization: $10,000+ per day

When Travel Insurance Makes the Most Sense

Travel insurance for Canadians is particularly valuable if:

• You're over 60: Health risks increase with age, and insurance becomes more cost-effective relative to potential medical costs.
• You have pre-existing conditions: Even if stable, the acute onset of conditions like diabetes, heart disease, or asthma can happen. Look for policies covering acute onset of pre-existing conditions.
• You're traveling for an extended period: Snowbirds spending months in the US face much higher statistical odds of needing medical care simply due to the extended time period. The longer you're away, the more likely it is that you'll need some form of medical attention. When getting a quote, simply enter your complete travel dates (whether it's 3 weeks or 6 months), and the policy will cover your entire stay. A policy covering several months typically costs $600-$2,000 depending on age and coverage level, which breaks down to just a few dollars per day for complete protection.
• You're doing physical activities: Skiing, hiking, cycling, or water sports increase injury risk. Some policies require adventure sports riders, but the coverage is worth it.
• You have family responsibilities: If a medical emergency would financially impact your children, spouse, or other dependents, insurance protects them too.
• You don’t want to fund a major, surprise expense: If an unexpected medical bill would require you to go into debt, pull from retirement savings, or cause financial hardship, don’t risk it.

When You Might Consider Going Without

To be completely honest, there are limited situations where you might not need travel insurance for your visit to America:

• Very short trips with minimal activity: A day trip across the border for gas and groceries carries minimal risk.
• You have substantial emergency savings: If you have $50,000+ liquid funds you can access immediately and are comfortable risking it, you're essentially self-insuring.
• You have comprehensive existing coverage: Some Canadians have extended health benefits through work, premium credit cards, or private health insurance that provides adequate US coverage. Verify this carefully before assuming you're covered.

Where to Get the Best Travel Insurance For Your Trip

The decision to get travel insurance is ultimately personal. Assess your own situation, risk tolerance, and financial capacity. If you decide insurance makes sense for your trip, make sure to compare multiple travel insurance plans designed specifically for visitors to the US and find coverage that fits both your trip and your budget.

Not sure where to start or still have questions? Our team of licensed insurance experts is here to help. We'll walk you through your options, answer your questions honestly, and help you find a plan that makes sense for your specific situation.

Frequently Asked Questions (FAQs)