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Credit Card Insurance Explained in Canada in 2026

Updated

Types of Credit Card Insurance

Insurance TypeWhat It CoversTypical CoverageFound On
Purchase protectionTheft or damage to new purchases90 days, $500–$1,500/itemMost cards
Extended warrantyDoubles manufacturer warranty+1 year (up to original warranty length)Most cards
Travel emergency medicalHospital, doctor, ambulance while travelling$500,000–$5,000,000Travel and premium cards
Trip cancellationNon-refundable travel costs if you can’t go$1,500–$5,000/tripMid-tier and premium cards
Trip interruptionCosts to return home early from a trip$3,000–$5,000Mid-tier and premium cards
Flight delayMeals, hotel if flight delayed 4–12+ hours$300–$500Mid-tier and premium cards
Baggage delayEssential purchases if bags are delayed 4–6+ hours$300–$500Mid-tier and premium cards
Lost/stolen baggageReplacement costs for lost luggage$500–$1,000Premium cards
Rental car CDWDamage to rental vehicleFull CDW coverageMost cards
Price protectionRefund difference if price drops60 days, $100–$500/itemSelect premium cards
Mobile device insuranceCovers phone damage/theft$600–$1,000/claimVery few cards

Travel Insurance by Card Tier

CoverageNo-Fee CardsMid-Tier ($120–$160/yr)Premium ($250–$799/yr)
Emergency medical$0–$500,000$1,000,000–$2,000,000$2,000,000–$5,000,000
Coverage period0–15 days15–21 days15–25 days
Trip cancellationNone$1,500–$2,500$3,000–$5,000
Trip interruptionNone$3,000–$5,000$5,000
Flight delayNone$300–$500$500
Baggage delayNone$300$500
Rental car CDWSomeYesYes
Concierge assistanceNoNoYes (premium)

How to Use Credit Card Insurance

StepWhat to Do
1. Pay with the right cardBook and pay for the full trip with the card that has the best insurance
2. Know your coverage before you goRead the insurance certificate (available online from your card issuer)
3. Keep all receiptsFor any expenses you may need to claim
4. Call the insurer immediatelyWithin 24–48 hours of an incident (number on back of card or in policy)
5. File a police reportRequired for theft claims (purchase protection and baggage)
6. Submit claim within time limitUsually 30–90 days after the incident
7. Provide documentationMedical records, receipts, police report, proof of purchase

Common Exclusions and Limitations

ExclusionDetails
Pre-existing medical conditionsConditions treated or changed in the 90–180 days before travel may not be covered
Age restrictionsSome cards reduce or exclude medical coverage for travellers 65+
Trip length limitsCoverage typically ends after 15–25 days (varies by card)
Extreme sportsSkydiving, bungee jumping, etc. may not be covered
Rental car exclusionsTrucks, SUVs, luxury vehicles, or rentals over 48 days
War and terrorismUsually excluded
IntoxicationIncidents related to alcohol or drug use may not be covered
Non-refundable conditionTrip cancellation only covers non-refundable portions
Business tripsSome policies only cover personal travel

Rental Car Insurance: What You Need to Know

FeatureCredit Card CDWRental Agency CDWRental Agency LDW
What it coversDamage to the rental carDamage to the rental carDamage + theft
Liability (injury to others)NoNoNo
CostFree (included with card)$15–$30/day$20–$40/day
Deductible$0 (usually)$500–$1,000$0
Exotic/luxury vehiclesUsually excludedCoveredCovered
SUVs and trucksCheck policy (often excluded)CoveredCovered
Rental period limit48 days (most cards)No limitNo limit
How to activatePay for rental with your card; decline agency CDWPurchase at counterPurchase at counter

Best Cards for Insurance Value

CardAnnual FeeBest Insurance Perks
Amex Platinum$799$5M medical, 15-day trip, $5K cancellation, unlimited lounges
Scotiabank Passport Visa Infinite$150$2M medical, 25-day trip, no FX fee, rental CDW
TD First Class Visa Infinite$139$1M medical, 21-day trip, rental CDW
CIBC Aventura Visa Infinite$139$2M medical, 15-day trip, rental CDW
BMO Eclipse Visa Infinite Privilege$250$2M medical, 21-day trip, rental CDW, no FX fee