- Many Canadians planning to travel in the next year are cutting costs such as foregoing the purchase of travel insurance, according to a new survey.
- Maru Public Opinion conducted the survey on behalf of TD Bank’s (TSX:TD; NYSE:TD) insurance subsidiary.
- Just 32 per cent of those planning to travel intend to purchase emergency travel medical and trip cancellation and interruption insurance.
- Shares of Toronto-Dominion Bank are down 0.39 per cent, trading at C$85.97 as of 12:05 pm ET.
Many Canadians planning to travel in the next year are taking measures to cut costs, including foregoing the purchase of travel insurance, according to a new survey commissioned by TD Insurance.
Maru Public Opinion conducted the survey on behalf of TD Bank’s (TSX:TD; NYSE:TD) insurance subsidiary and revealed Tuesday that 78 per cent of Canadians polled were prioritizing reducing or cutting back on non-essential spending because of rising costs.
TD Insurance and Maru Public Opinion found that 68 per cent of Canadians surveyed are planning to travel for pleasure in the next 12 months, and just 32 per cent of those planning to travel intend to purchase emergency travel medical and trip cancellation and interruption insurance.
Nearly 30 per cent of respondents said they are struggling to meet the financial needs of their trip, including covering expenses in case something unexpected happens. The survey noted that Canadians are saving for trips by foregoing dining out (63 per cent) and buying new clothes (60 per cent).
Of the Canadians surveyed who plan to travel, 40 per cent do not believe 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 25 per cent 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,” Annie Campoli, vice president, distribution, life and health at TD Insurance, said in a statement. “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.”
Other highlights from the survey include:
- 54 per cent of survey respondents prefer to spend their money on experiences rather than material goods
- 38 per cent of Generation Z respondents want to travel with family
- 31 per cent of Baby Boomers plan to visit somewhere they haven’t seen before
- 34 per cent of Millennials are looking to travel with their children
- 53 per cent of Gen Zers and 38 per cent of Millennials who travel have experienced a disrupted trip, having to either shorten or cancel a trip or manage a serious injury that required medical attention
- 32 per cent of Canadians surveyed who have experienced these travel disruptions, incurred unexpected expenses averaging over $2,600
About the survey
The Maru Public Opinion on behalf of TD Insurance surveyed 1,520 randomly selected Canadian adults who are Maru Voice Canada online panelists from July 29-30, 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 because of rounding.
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group. TD is the sixth largest bank in North America by assets and serves more than 27.5 million customers. TD had $1.97 trillion in assets on April 30, 2024.
Shares of Toronto-Dominion Bank (TSX:TD) are down 0.39 per cent, trading at C$85.97 as of 12:05 pm ET.
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