Most Canadians with plans to travel do not intend to purchase travel insurance, even as a significant portion say they cannot afford an out-of-pocket expense exceeding $5,000.
This is according to a recent survey by TD Insurance, which found that 65% of Canadians are planning to go on a trip in the near future.
Among those with travel plans, only 36% said they would purchase both medical and cancellation travel insurance.
While 54% said they have the financial means to cover some out-of-pocket expenses, 41% of those that do have the means said they can only cover less than $5,000 and 31% said they wouldn’t be able to afford out-of-pocket expenses that go over $300.
Survey respondents cited the cost of travel insurance as a major reason behind their decision to not purchase it. However, Kamana Tripathi, associate vice president of Travel Insurance, warned that expenses incurred from medical bills and travel interruptions can easily outweigh this initial cost.
“From unexpected medical emergencies to cancelled flights, even the best-laid travel plans can go awry,” Tripathi said. “Travel medical or trip cancellation coverage can help protect you and your family from unforeseen, and often costly, expenses when you're away.”
The survey also found that younger Canadians between the ages of 18 and 34 are the least likely to purchase travel insurance, with only 27% saying they plan to buy cancellation and medical coverage, compared to 39% of Canadians over the age of 35.
“Customers have options when it comes to travel coverage and can select a plan that best fits their personal needs,” Tripathi said further. “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.”
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