A costly cut: Many Canadians plan to travel on tight budgets that won't include travel insurance, according to new survey

TD Insurance survey reveals a third of Canadians surveyed who plan to travel for pleasure in the next 12 months, won't be packing travel insurance that covers them completely.

TORONTO, Sept. 24, 2024 /CNW/ - As Canadians start planning their holiday and winter vacations, a new survey from TD Insurance, conducted by Maru Public Opinion, reveals that despite rising costs and economic pressures, many Canadians surveyed (68%) are still planning to travel for pleasure in the next twelve months, but a third of them are not purchasing travel insurance for their trip.

To cope with rising costs, many Canadians are focused on saving, with 78 per cent of Canadians surveyed prioritizing reducing or cutting back on non-essential spending. Having said that, fifty-four per cent of survey respondents prefer to spend their money on experiences rather than material goods. From Gen Z'ers wanting to travel with family (38%), to Boomers planning to visit somewhere they haven't seen before (31%), to Millennials looking to travel with their kids (34%), it's clear Canadians surveyed who plan to travel are keen to explore the world – but travel budgets are still tight.

While Canadians surveyed are finding creative ways to save for upcoming trips, like foregoing dining out (63%) and buying new clothes (60%), nearly 30 per cent of respondents say they are struggling to meet the financial needs of their trip, and that includes covering expenses in case the unexpected happens.

In fact, only 32 per cent of Canadians surveyed planning to travel intend to purchase both emergency travel medical and trip cancellation & interruption insurance,  yet 40 per cent of Canadians surveyed who plan to travel, do not feel they have the financial means to cover unexpected out-of-pocket costs: 15 per cent could only cover up to $300 of out-of-pocket expenses and one in four Canadians surveyed would not be able to manage any unanticipated expenses without assistance if something were to happen.

"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, Distribution, Life and Health, 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."

For Canadians planning to travel for pleasure or business in the next 12 months, there are many instances where you may need to rely on travel insurance. More than half of Gen Zers (53%) and 38 per cent of Millennials surveyed who travel, have experienced a disrupted trip, having to either shorten or cancel a trip, or manage a serious injury that required medical attention. Further, 32 per cent of Canadians surveyed who have experienced these travel disruptions, incurred unexpected expenses averaging over $2,600.

"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. Having the right emergency travel medical and trip cancellation & interruption insurance can help you travel with confidence and focus on how much fun you're going to have on your trip," said Campoli.

To learn more about travel insurance plans, visit the TD website. 

About TD Bank Group 

The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in North America by assets and serves over 27.5 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 and TD Cowen. TD also ranks among the world's leading online financial services firms, with more than 17 million active online and mobile customers. TD had $1.97 trillion in assets on July 31, 2024. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.

About the Survey 

This Maru Public Opinion survey conducted on behalf of TD Insurance was undertaken by the sample and data collection experts at Maru/Blue. 1,520 randomly selected Canadian adults who are Maru Voice Canada online panelists were surveyed from July 29^th to July 30^th 2024. The results of this study have been weighted by education, age, gender and region (and in Quebec, language) to match the population, according to Census data. This is to ensure the sample is representative of the entire adult population of Canada. For comparison purposes, a probability sample of this size has an estimated margin of error (which measures sampling variability) of +/- 2.5%, 19 times out of 20. Discrepancies in or between totals when compared to the data tables are due to rounding.

SOURCE TD Bank Group

Alison Ford, Corporate & Public Affairs, TD, [email protected]