The deductible is the amount you pay yourself when you claim. Choosing $1,000 instead of $0 lowers the premium, sometimes appreciably. But you still have to be able to pay that amount on the day an emergency happens.
Per policy or per claim: the distinction that matters
Two contracts can both say “$500 deductible” and not mean the same thing.
Per-policy deductible. You pay $500 once for the entire term of the contract, no matter how many claims you make. This is the better arrangement.
Per-claim deductible. You pay $500 for each separate event. Two unrelated health problems during the stay, and your out-of-pocket cost doubles.
The difference is rarely highlighted in comparison tables. It sits in the contract conditions, under “deductible”. Ask before you buy, especially for a stay of several months where the chance of multiple claims goes up.
What the deductible actually saves you
The effect on the premium is not linear. The first steps have the biggest impact, then the returns shrink.
As a guide, for standard visitor coverage:
- going from $0 to a $250 deductible is the step that lightens the premium most;
- moving to $500 adds a smaller gain;
- moving to $1,000 is still worthwhile for many profiles;
- past $1,000, the extra saving becomes marginal relative to the risk you take on.
How wide these gaps run varies by insurer, by the age of the insured person and by the coverage amount. The gap is usually wider for older profiles, whose base premium is higher.
How to choose based on your profile
A high deductible makes sense when:
- you have an accessible emergency fund that covers the amount, in Canadian dollars;
- the stay is short, which limits the chance of multiple claims;
- the insured person is in good health and takes no regular medications;
- the premium gap is genuinely significant, not a few dollars.
A low or zero deductible makes sense when:
- an unexpected $1,000 expense would strain the budget;
- the insured person is over 65 or lives with a known medical condition;
- the stay runs several months;
- the deductible applies per claim rather than per policy.
The reasoning is the same as for any insurance: the deductible shifts risk from the insurer to you, in exchange for a lower premium. The right question is not “which deductible is cheapest”, but “what amount can I pay without difficulty on the day I need to”.
Two common mistakes
Confusing the deductible with coinsurance. Some policies add, after the deductible, a percentage of the remaining bill that stays with you. A $0 deductible with 20% coinsurance costs you more at claim time than a $500 deductible reimbursed at 100%.
Choosing the deductible before the coverage amount. The logical order is the reverse. Set an adequate maximum first, often $100,000 at minimum and more for an older visitor, then adjust the deductible to reach your budget. Cutting the maximum to avoid a deductible is a bad trade: the maximum is what protects you in the worst case.
In short
Check whether the deductible applies per policy or per claim, compare the real premium gap between two levels rather than assuming, and never lower the coverage amount to fund a smaller deductible.
Our advisors compare these parameters across insurers for the same profile. See our visitor insurance for Canada plans, or read how much visitor insurance costs to understand what sets the premium. Get your price in a few minutes, with no obligation.