Most Canadians are planning to book vacations for next year, but a new survey reveals they’re turning to a risky plan to save money — not getting travel insurance.
A new survey by TD Insurance, conducted by Maru Public Opinion, shows that despite rising costs and economic pressures, the majority of Canadians surveyed (68 per cent) still plan to travel for pleasure in the next 12 months.
But one-third of them will not purchase travel insurance for their trip.
According to the survey, 78 per cent of people said they plan to cut down on non-essential expenses on trips. 63 per cent of the respondents said they are cutting down on fine dining and 60 per cent said they will avoid buying clothes on trips.
Nearly 30 per cent said they were struggling to meet the financial needs for their travel, including covering expenses in case an unexpected event occurs.
Only 32 per cent of Canadians surveyed who are planning to travel intend to purchase emergency travel medical and trip cancellation and interruption insurance.
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“It’s easy to understand why not having travel insurance is tempting for those looking for ways to cut costs, but that can also come with risks,” said Anne Campoli, vice president of distribution, life and health at TD Insurance.
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“If you have the right policy to meet your needs, travel insurance can help financially when the unexpected happens — from emergency medical bills to expenses like trip interruption and trip cancellation due to force majeure, which are covered by your policy,” Campoli said.
Disruptions, whether caused by labour action or delays at the airport, have become so common that some customers no longer have confidence their insurance will cover their costs, said John Gradek, an aviation management expert at McGill University.
He said the insurance industry was still trying to deal with the disruptions faced by the tourism industry.
He said, “The passengers want to say that if we do not get compensation for this, then we will not pay anything for the insurance also.”
The survey said 32 per cent of respondents have faced disruptions to their travel, including either a trip being cut short or cancelled or a serious injury requiring medical attention.
They incurred disruption costs of more than $2,600 on average.
Gradek cautioned against not having insurance.
“The only way to protect yourself from travel disruption is insurance,” he said.
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Campoli said having travel insurance can help travelers focus on enjoying their vacation rather than worrying about disruptions.
“No matter how diligent we are in planning our trip, from checking the weather to making sure we have all the necessary documentation to making a list of things to do and see, unplanned cancellations or medical emergencies can happen while traveling and are out of our control,” Campoli said.
Gradek said travelers can save money if they learn about the right type of insurance before their trip.
“There are different levels of insurance and you can get them at different premium levels,” he said, adding that these range from airfare insurance to all-risk insurance packages.
“In my view, medical insurance is something that is not optional,” he said.
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