Travel Insurance For A Mexico Vacation

It’s widely known that Mexico is a place for joyous festivities such as Día de los Muertos, or Day of the Dead, but like any other destination, common sense will play a role in remaining safe.

“Although Mexico is rich and diverse in so many ways, certain areas have a reputation for crime. Robberies, pickpocketing and carjackings can happen, even with a police presence around,” says Christina Tunnah, General Manager of Marketing and Brands with World Nomads, a travel insurance provider. “When you’re out late at night, whether it is a bar, club or nocturnal festival, it’s important to use common sense and take safety precautions.”

Tunnah also warns that alcohol poisoning and drink-spiking can occur, which is why it’s important to be extra careful when out and about.

Before booking their flights and hotel accommodations, savvy travellers know to check for any existing travel advisories that will alert visitors to any potential threats. The Government of Canada currently lists Mexico at a level 2 travel advisory, or  exercise a high degree of caution. There is also a level 3 travel advisory, or avoid all non-essential travel, for certain regions due to high levels of criminal activity and kidnapping.

Although Mexico is a popular draw for all-inclusive resorts and cruises, there is no shortage of ways to explore Mexico independently.

“You can ride the waves in the sleepy surf towns of Northern Baja or go scuba diving in the Yucatan’s cenotes (limestone sinkholes). For whatever you choose to do and however you choose to do it, you’ll want to make sure that your travel insurance plan covers adventure sports and activities,” says Tunnah.

Be aware that not all travel insurance plans automatically cover high-risk travel or adventure and extreme sports. You may have to purchase an upgrade or look for a policy that covers the adventure activities you have planned. For example, TuGo Travel Insurance offers a Sports & Activities Coverage add-on that covers up to $10 million for eight listed activities, mountaineering or rock climbing, and up to $500,000 for higher risk activities, including scuba diving over 40 metres or free diving.

Mexico, like other regions, is prone to hurricanes and tropical storms so it’s smart to buy coverage for trip cancellation and trip delay.

Trip cancellation insurance: If you’ve paid for excursions, hotel rooms or other non-refundable expenses, trip cancellation insurance will work in your favour. For example, if a storm hits your Mexico destination and forces you to cancel the trip, a travel insurance plan can cover 100% of the non-refundable trip expenses that you prepaid.

If you want to cancel a trip due to fear of a current storm (that may be in the vicinity but not projected to hit your destination), that cancellation likely would not be covered under a travel insurance plan. Check the fine print to see what is and is not covered.

In such a case, having optional “cancel for any reason” (CFAR) coverage might be beneficial. This upgrade will allow you to make a trip cancellation claim for any reason not listed in the base policy. Reimbursement is usually 50% or 75% under a CFAR claim.

Trip delay insurance: If your flights are delayed because an incoming flight is cancelled, for example, trip delay insurance can reimburse you for the costs of meals, personal care items, and transportation and hotel accommodations during an unexpected delay. Inclement weather or mechanical issues are usually covered for a travel delay claim.

It’s important to know that a travel insurance policy has a specific time frame of delay before you’re eligible to make a travel delay claim, which is typically three to 12 hours.

Trip interruption coverage: Comprehensive travel insurance plans include trip interruption insurance in case you need to cut your trip short and return home. These benefits apply if you or a travelling companion become ill or injured during a trip, for example.

In addition, you can be covered if a family emergency requires you to return home. For example, if you are in Cancun and your two children are staying with your in-laws, and one of the kids becomes extremely ill, that scenario would be covered under trip interruption benefits. The benefits would not only reimburse you for the cost of changing your flights or booking a new flight, but also reimburse you for any pre-paid and non-refundable costs for parts of the trip you didn’t use.

Your provincial or territorial health plan may provide zero or very little coverage outside Canada. This is why travel medical insurance is so vital for emergency medical expenses.

In Mexico you could encounter mosquito-borne illnesses such as dengue fever and malaria, or traveller’s diarrhea (also known as Montezuma’s Revenge). To help combat such illnesses, Canadian Travel Clinics provides a list of vaccinations that you should consider getting before you leave on your Mexico trip.

Still, not every illness or accident can be avoided. Whether you need an overnight hospital stay or simply a visit to the local clinic, you can use emergency medical coverage. A travel insurance plan will also offer a 24/7 emergency travel assistance provider. This emergency assistance team can help out with the logistics of finding and getting you to a medical facility and, once you’re there, monitoring your care.

You can find emergency medical plans starting at $1 million in coverage and up.

Depending on the specific region of Mexico that you’re visiting, the distance to the nearest medical facility that’s well-equipped to treat severe illnesses or injuries could vary.

For this reason, it’s important to have a good level of coverage for emergency medical evacuation that pays to get you to the nearest adequate medical facility. If your condition warrants it, the coverage could also pay for your repatriation, or your return to Canada, for treatment.

Emergency medical evacuation coverage may be included in the overall emergency medical benefit limit or have its own limit, such as $500,000.

If you are taking in the city at a bazaar, or dining in an authentic street-side eatery, be sure to keep track of your personal belongings. If you do have your camera stolen, for example, this is where baggage insurance in a travel insurance plan can help.

Be sure to report the theft to local law enforcement and contact your travel insurance company to submit a claim. (Some plans require that home insurance pays out first.) This would fall under coverage for baggage and personal effects.

If your wallet or purse is swiped, you can also call your travel insurance company’s 24/7 emergency assistance hotline for help with replacing your ID and getting your credit cards replaced.

The Bottom Line

Mexico is a relatively cheap country to visit famous for its incredible food, stunning beaches, rich culture and friendly people. Just don’t make the mistake of skimping out on adequate travel insurance because if a travel emergency strikes, your so-called “budget vacation” could quickly drain your bank account.