Canadians surveyed are keen to travel with their families, explore places they’ve never been, and venture somewhere fun over the next year—but many won’t be packing travel insurance, according to a new survey from TD Insurance.
Even amidst rising costs of living, 68% of Canadians surveyed are still planning to travel for pleasure in the next 12 months. However, only 32% of Canadians surveyed who said they are planning to travel intend to purchase both emergency travel medical as well as trip cancellation and interruption insurance, according to the survey findings.
Among those who don’t intend to buy travel medical insurance, 36% of Gen Z and 16% of Millennials surveyed say it’s too expensive. What’s more, 15% of Canadian respondents say they could only cover up to $300 of out-of-pocket expenses, and 25% wouldn’t be able to handle any unanticipated expenses without assistance.
“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, Vice President, Distribution, Life and Health, TD Insurance.
Even the most well-planned trips can hit unexpected turbulence, from lost luggage and flight cancellations to illness or injury. Having the right travel insurance policy in place to meet your needs can help financially if an unforeseen event, that is covered by travel insurance, were to occur.
Canadians are finding creative ways to save for travel
With Canadians paying more today than they were just a few years ago on essentials like groceries and gas, many Canadians surveyed said they are focused on saving, with 78% reporting they are reducing or cutting back on non-essential spending. However, 54% of Canadian respondents said they prefer to spend their money on experiences rather than material goods.
To make these experiences happen, Canadians surveyed who plan to travel said they would give up dining out (63%) and buying new clothes (60%) to save more toward their travel plans.
While those Canadians surveyed said they are prepared to make sacrifices to stretch their travel budget, many still aren’t financially prepared to cover all the costs of a getaway. Nearly 30% of survey respondents say they are struggling to meet the financial needs of their trip, with 21% feeling they will be on a tight budget when they travel.
Don’t forget about adding travel insurance to your packing list
Even for Canadians who are finding creative ways to save money for – or on – a trip, Campoli says it’s important for travellers to understand what travel insurance covers, and understand what it could mean to travel home without it.
More than half of Gen Zers (53%) and 38% of Millennials surveyed have experienced disrupted travel plans, 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 travel disruptions incurred out-of-pocket expenses averaging over $2,600.
“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,” Campoli said.
“Travel insurance can help cover eligible expenses, such as emergency medical bills or non-medical expenses like travel interruptions and cancellations due to a covered event.”
“We encourage Canadians to take an active role in finding the right travel insurance plan that best meets their needs so they can focus on how much fun they’re going to have on their trip,” Campoli said.