TD Insurance survey reveals 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.
According to the survey, conducted by Leger, the majority of Canadians (65%) plan on taking a trip in the near future, but 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-10 Canadians responded that they wouldn’t be able to cover any out-of-pocket expenses above $300 should something unexpected happen.
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.
Despite the protection travel insurance could provide, many Canadians are underestimating the potential costs of being unprotected, notes Kamana Tripathi, Associate VP of Travel Insurance at TD.
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 10 (41%)) are only able to cover less than $5,000.
• Three-in-10 Canadians (31%) wouldn’t be able to cover any out-of-pocket expenses above $300.
• Three-in-10 (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).
“The cost of medical bills or expenses incurred as a result of travel interruptions or cancellations can outweigh the cost of travel insurance,” said Kamana. “Customers have options when it comes to travel coverage and can select a plan that best fits their personal needs.
She notes that an online assessment tool is available to help determine the right coverage.
And for travel professionals, of course, adding insurance to a package can mean more commission.