Travel insurance isn't on most Canadians' packing list, according to new survey

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 $5K

TORONTO, March 28, 2023 /CNW/ - Whether it's exploring a new destination, sightseeing with friends, or taking a family vacation, the majority of Canadians (65 per cent) plan on taking a trip in the near future. However, only 36 per cent of those planning to travel, intend to purchase both medical and cancellation travel insurance.

Among Canadians overall, 54 per cent 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.

That's according to 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 per cent saying they intend to buy cancellation and travel medical coverage, compared to 39 per cent of those over the age of 35.

"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," said Kamana Tripathi, Associate Vice President of Travel Insurance

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 per cent) have the financial means to cover some out-of-pocket expenses, however of those who can cover expenses, four in ten (41 per cent)) are only able to cover less than $5,000.
• Three-in-ten Canadians (31 per cent) wouldn't be able to cover any out-of-pocket expenses above $300.
  • Three-in-ten (29 per cent) 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 per cent of those who won't purchase medical travel insurance and 35 per cent 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. 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."

The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the fifth largest bank in North America by assets and serves over 27 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America's Most Convenient Bank^®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in The Charles Schwab Corporation; Wealth Management and Insurance, including TD Wealth (Canada), TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities. TD also ranks among the world's leading online financial services firms, with more than 15 million active online and mobile customers. TD had $1.9 trillion in assets on January 31, 2023. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.

SOURCE TD Bank Group