Canadians willing to risk not being covered by travel insurance, survey finds

Even though Canadians are facing higher cost pressures every day, they have no plans to slow down on vacations. But the budget cuts they are making might put them at risk during their trip, a new survey by TD Insurance finds. 

A full 68% of Canadians are still planning to vacation in the nest twelve months, but one-third are not planning on buying travel insurance for their trip, the survey, conducted by Maru Public Opinion, shows. 

Nearly 30% of respondents say they are struggling to meet the financial needs of their trip, and that includes budgeting enough in expenses to cover the unexpected.  

“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, TD Insurance’s president of distribution, life and health.  

“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.” 

Take, for example, Hurricane Helene, which is set to intensify this week, reaching the Caribbean, including parts of western Cuba, the eastern Gulf of Mexico, and portions of Florida and some further inland U.S. states. 

Anyone with a planned tropical vacation would benefit from trip cancellation and interruption coverage in case of a storm intensifying, (though it’s only available if policyholders purchased before the storm was named). 

However, only 32% of Canadians surveyed planning to travel intend to purchase both emergency travel medical and trip cancellation & interruption insurance. 

Yet, a further 40% don’t 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 25% would not be able to manage any unanticipated expenses without assistance).  

While Canadians are still prioritizing vacations, many are finding other ways to cut costs. A full 63% say they’re forgoing dining out, buying new clothes (60%). 

Yet many young Canadians say they’re experienced a situation where they’ve had their trip distrupted, shortened, cancelled, or have had to contend with a serious injury. That’s 58% of Gen Z’s and 38% of Millennials. 

A further, 32% of those surveyed who’ve experienced these travel disruptions said it cost them over $2,600 to recoup. 

Feature image by iStock/Prathaan

Alyssa DiSabatino

Alyssa Di Sabatino has been a reporter for Canadian Underwriter since 2021, covering industry trends, market developments, and emerging risks.