Travel Insurance

What Is a Deductible?

CAA Travel Insurance¹ now offers deductibles on most policies we issue. A deductible is a specified amount of money that you (the insured) agree to pay (in USD) should you have to make a claim due to something unexpected happening during your travels. Once you pay that amount, the travel insurance company will cover the remaining costs for all eligible claims.

You choose the amount of your deductible depending on what is convenient for you. By choosing to pay for a deductible, your travel insurance premium will be reduced. The amount of reduction depends on what level of deductible you select. A higher deductible means greater savings.

How Do Deductibles Work?

Here are some guidelines when considering adding a deductible to your travel insurance policy.

Eligible travel insurance policies are allowed one deductible. That deductible applies to each person insured under the policy, per event that takes place.

If you opted for a $500 deductible and both of the people you are travelling with had a claim during your vacation, they would each need to pay the $500 deductible.

If you and the others you are travelling with want different deductible amounts, you will each need your own insurance policy.

The amount of your deductible will determine how much money you will save on your premium.

A $300 deductible results in a 10% reduction of your premium, and a $1,000 deductible leads to a 20% reduction of your premium.

If the value of your claim is less than the amount of your deductible, you are responsible for the entire payment.

If you have a $500 deductible and you break your $300 prescription sunglasses, you will pay the $300 to have them replaced.

If you opt to add additional coverage to your plan, such as our Vacation Package, the deductible applies to all the products covered by the Vacation Package:

  • Emergency Medical Insurance
  • Trip Cancellation & Interruption
  • Baggage
  • Travel Accident

Our deductibles are charged in US dollars since the majority of our claims are paid in that currency. This means greater reductions in your premium when you select a deductible.

If you are a visitor to Canada or are purchasing a travel insurance policy for someone coming to Canada, note that our plans for visitors have a default deductible of $50. However, you can choose to increase the deductible.

How Do You Choose a Deductible?

Deductibles are not mandatory to buy travel insurance, but having one can lower the cost of your policy. When choosing a deductible, opt for one that you are comfortable paying for should the need arise.

What Are the Benefits of a Deductible?

By choosing a deductible, you can lower the cost of your travel insurance premium.

By paying for some of your insurance costs in an event of a claim, if and when you make a claim, you save more money up front when you buy your insurance policy.