Canadians Aren’t Packing Travel Insurance

In a new survey, TD Insurance found that most Canadians planning to travel don’t intend to purchase travel insurance, even though over half of Canadians can’t afford an out-of-pocket expense exceeding $5,000.

While the majority of Canadians (65%) plan on taking a trip in the near future, only 36% of those planning to travel, intend to purchase both medical and cancellation travel insurance.

Among Canadians overall, 54% say they have the financial means to cover some out-of-pocket expenses, but most would only be able to cover less than $5,000. And three-in-ten Canadians responded that they wouldn’t be able to cover any out-of-pocket expenses above $300 should something unexpected happen.

Those are some of the findings of a new TD Insurance survey, conducted by Leger, that found most Canadians may not be prioritizing insurance in their travel plans. Among those likely to travel in the next year, younger Canadians between the ages of 18 and 34, appear least likely to purchase travel insurance with only 27% saying they intend to buy cancellation and travel medical coverage, compared to 39% of those over the age of 35.

Kamana Tripathi, Associate Vice President of Travel Insurance, said that: “From unexpected medical emergencies to cancelled flights, even the best-laid travel plans can go awry. Travel medical or trip cancellation coverage can help protect you and your family from unforeseen, and often costly, expenses when you’re away,”

Despite the protection travel insurance could provide, many Canadians are underestimating the potential costs of being unprotected when they could be travelling with confidence.

According to the survey:

• If something were to happen while travelling, over half of Canadians (54%) have the financial means to cover some out-of-pocket expenses, however of those who can cover expenses, four in ten (41%) are only able to cover less than $5,000.
• Three-in-ten Canadians (31%) wouldn’t be able to cover any out-of-pocket expenses above $300.
• Three-in-ten (29%) Canadians aged 18-34 believe that travelling with insurance isn’t necessary.
• Why aren’t Canadians purchasing insurance? A third of Canadians who will not be purchasing insurance for their upcoming trip believe that travel insurance is too expensive (cited by 33% of those who won’t purchase medical travel insurance and 35% of those who won’t purchase cancellation travel insurance).

Kamana said: “The cost of medical bills or expenses incurred as a result of travel interruptions or cancellations can outweigh the cost of travel insurance.”

And Kamana continued: “Customers have options when it comes to travel coverage and can select a plan that best fits their personal needs. With so many Canadians eager to travel again, it’s important they do their research to understand what they are covered for if the unexpected happens, either before or while they are away. You can check what insurance coverage options you might need to consider via online travel insurance needs assessment tool.”