Convincing a client to add insurance to their booking may be getting harder, according to a new survey from TD Insurance, which reveals that nearly a third of Canadians are who are planning to travel in the next 12 months say they will trim their trip safety net as part of a strategy to forgo non-essential costs without giving up going altogether.
The survey, conducted by Maru Public Opinion, says 68% of Canadians are still planning to travel for pleasure in the next year, but 78% of those intend to make other cutbacks, due to rising economic pressures, at the same time fitting the growing desire to prioritize experiences over material goods.
Anong the most common cutbacks are:
- Dining out (63%)
- Buying new clothes (60%), and,
- Travel insurance (68%)
In fact, only 32% of Canadians surveyed planning to travel intend to purchase both emergency travel medical and trip cancellation and interruption insurance.
Yet 40% of Canadians surveyed who plan to travel do not feel they have the financial means to cover unexpected out-of-pocket costs: 15% could only cover up to $300 of out-of-pocket expenses and one in four Canadians surveyed would not be able to manage any unanticipated expenses without assistance if something were to happen.
“It’s easy to understand why skipping travel insurance is tempting for those looking to find ways to cut costs, but that could pose risks,” said Annie Campoli, VP, Distribution, Life and Health, TD Insurance.
But she adds, “No matter how diligent we are when it comes to planning our trips, from checking the weather, to ensuring we have all the necessary documents, to creating a list of things to do and see, unplanned cancellations or medical emergencies while travelling can happen and can be out of our control.”
For example, according to the survey, more than half of Gen Zers (53%) and 38% of Millennials surveyed who travel have experienced a disrupted trip, having to either shorten or cancel a trip, or manage a serious injury that required medical attention. Further, 32% of Canadians surveyed who have experienced these travel disruptions, incurred unexpected expenses averaging over $2,600.
To that end, Compolli says insurance should be seen as an integral part of any travel package.
“If you have the right policy in place to meet your needs, travel insurance can help financially should the unforeseen happen – from emergency medical bills to expenses like travel interruptions and cancellations due to an unexpected event that’s covered by your policy,” she says.
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