Most Canadians are planning to book vacations over the next year but a new survey shows that they are adopting a risky plan to save money — skipping travel insurance.
A new survey from TD Insurance, conducted by Maru Public Opinion, reveals that despite rising costs and economic pressures, most Canadians surveyed (68 per cent) are still planning to travel for pleasure in the next 12 months.
But a third of them will not be purchasing travel insurance for their trip.
According to the survey, 78 per cent said they are planning to cut back on non-essential spending on trips. Of the respondents, 63 per cent said they are cutting back on fine dining and 60 per cent said they will hold back on buying clothes on trips.
Nearly 30 per cent said they are struggling to meet the financial needs of their trip, and that includes covering expenses in case the unexpected happens.
Only 32 per cent of Canadians surveyed who are planning to travel intend to purchase both emergency travel medical and trip cancellation and interruption insurance.
“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 of Distribution, Life and Health at TD Insurance.
“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,” Campoli said.
John Gradek, aviation management expert at McGill University, said interruptions, whether from labour action or airport delays, have become so common that some customers have little faith that their insurance will cover their cost.
The insurance industry, he said, was still playing catch-up with the disruptions in the travel industry.
“Passengers are looking to say, well, if we’re not going to get compensation for it, I’m not going to pay anything for insurance,” he said.
The survey said 32 per cent of respondents have had to experience a disrupted trip, which includes having to either shorten or cancel a trip or manage a serious injury that required medical attention.
They incurred an average disruption cost of over $2,600.
Gradek cautioned against skipping insurance.
“The only way that you can protect yourself (from travel disruptions) is with insurance,” he said.
Campoli said getting travel insurance can also help travellers focus on enjoying their vacation, instead of worrying about interruptions.
“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.
Gradek said travellers can still save money, if they take the time to research the right kind of insurance before their trip.
“There are different levels of insurance and you can get them at varying levels of premiums,” he said, adding that they range from airfare insurance to all-risk insurance packages.
“I think medical insurance is something that, in my opinion, is not optional,” he said.