Young Canadians spurn travel insurance
A significant number of young Canadian travellers are not purchasing travel insurance or are not taking the time to understand their policy. James Wallis reports on new research that highlights this worrying trend As Canadians travel south of the border, almost half (44 per cent) between the ages of 18 and 34 say they rarely or never purchase travel insurance when travelling to the US, according to a recent RBC Insurance survey conducted by Ipsos Reid. More than half (56 per cent) of young travellers don’t take the time to understand what their travel insurance covers before they leave on their trip. Tim Bzowey, vice-president of travel at RBC Insurance, explained: “Young travellers often forget about travel insurance in the excitement of planning a trip. Travelling without insurance can have some serious consequences, and since this age group tends to be more active when they travel, their chances of needing emergency medical care may be increased.” Among the misconceptions RBC Insurance found that young travellers have is the belief, held by more than a third (34 per cent) of young Canadians, that they don’t need travel insurance if they’re only travelling to the US because their provincial health plan will cover their medical costs. However, a two-day hospital stay for a broken leg in California, for example, can cost up to $8,000 per day and the average provincial health plan would pay only $200 daily, leaving the individual responsible for the $7,800 difference. In comparison, a 30-year-old holidaymaker travelling for eight days in the US could buy full emergency medical travel insurance for just $33. The survey also found that 84 per cent of young travellers believe that they don’t need to buy travel insurance if they are travelling to another province within Canada. However, government health insurance plans (GHIP) may limit the reimbursement of emergency medical expenses once travellers leave their home province. For example, an air ambulance with a full medical team travelling from Calgary to Toronto can cost $24,000 and is not covered by GHIP. Young Canadians also assume that they are covered through existing travel insurance plans, said RBC Insurance. Fifty-seven per cent believe that they don’t need to buy travel insurance because they have sufficient coverage through their work or credit card. These plans may have limits or restrictions on claim amounts, the number of travel days, age and certain types of medical emergencies. Bzowey added: “There is often confusion and misconceptions around the different types of insurance available. It’s important to understand what your needs are and the different types of travel insurance available to ensure financial protection against any unexpected travel situations.”
A significant number of young Canadian travellers are not purchasing travel insurance or are not taking the time to understand their policy. James Wallis reports on new research that highlights this worrying trend
As Canadians travel south of the border, almost half (44 per cent) between the ages of 18 and 34 say they rarely or never purchase travel insurance when travelling to the US, according to a recent RBC Insurance survey conducted by Ipsos Reid. More than half (56 per cent) of young travellers don’t take the time to understand what their travel insurance covers before they leave on their trip.
Tim Bzowey, vice-president of travel at RBC Insurance, explained: “Young travellers often forget about travel insurance in the excitement of planning a trip. Travelling without insurance can have some serious consequences, and since this age group tends to be more active when they travel, their chances of needing emergency medical care may be increased.”
Among the misconceptions RBC Insurance found that young travellers have is the belief, held by more than a third (34 per cent) of young Canadians, that they don’t need travel insurance if they’re only travelling to the US because their provincial health plan will cover their medical costs. However, a two-day hospital stay for a broken leg in California, for example, can cost up to $8,000 per day and the average provincial health plan would pay only $200 daily, leaving the individual responsible for the $7,800 difference. In comparison, a 30-year-old holidaymaker travelling for eight days in the US could buy full emergency medical travel insurance for just $33.
The survey also found that 84 per cent of young travellers believe that they don’t need to buy travel insurance if they are travelling to another province within Canada. However, government health insurance plans (GHIP) may limit the reimbursement of emergency medical expenses once travellers leave their home province. For example, an air ambulance with a full medical team travelling from Calgary to Toronto can cost $24,000 and is not covered by GHIP.
Young Canadians also assume that they are covered through existing travel insurance plans, said RBC Insurance. Fifty-seven per cent believe that they don’t need to buy travel insurance because they have sufficient coverage through their work or credit card. These plans may have limits or restrictions on claim amounts, the number of travel days, age and certain types of medical emergencies.
Bzowey added: “There is often confusion and misconceptions around the different types of insurance available. It’s important to understand what your needs are and the different types of travel insurance available to ensure financial protection against any unexpected travel situations.”