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Millennials who travel without insurance are playing a risky game

A new survey commissioned by Allianz Global Assistance suggests millennials are not buying travel insurance, claiming it unnecessary, too expensive or that their trip was too short to require insurance.

However, a visit to a US emergency room can start t $4,000. Being admitted to hospital for a two days can run up to $7,500. The average three-day hospital stay in the U.S. is $30,000.

These trends are significant as Dan Keon, senior director, market management, Allianz Global Assistance states, “Millennials are the fastest growing travel segment here in Canada”.

Ontario close to approving rules to reduce auto insurance by 15%

Ontario is looking to approve the use of in-vehicle monitors to allow insurance companies to charge based on driving habits and distance traveled. In contrast to current models that charge based on past driving records, the usage-model will consider risky behaviours such as rapid accelerations and hard braking.

However, by providing insurance companies with a wealth of data, the usage model brings with it substantial privacy issues. It opens up the possibility of many other factors being considered such as time of day, weather conditions and traffic flow. Indeed, many driver's may not be comfortable being tracked, so educated consent will have to be addressed by companies. However, this concern may be moot in the near future as many municipalities are already tracking licenses of every car entering their jurisdiction.

Still, for driver's that have short commutes or parents looking for cheaper rates for their children, these usage-based plans may be a viable option.

Costs of Hurricane Sandy in Canada

In the wake of Hurricane Sandy, costs of damage have topped an estimated $100 million in Canada.

Canadians not always aware of medical costs when travelling: BMO survey

Canadian Press

MONTREAL - Only about 50 per cent of Canadians know they are mainly responsible for any medical costs when travelling outside the country, according to a BMO insurance survey.

In addition, some Canadians don't understand that their provincial health insurance doesn't automatically provide coverage for all medical costs even for travel in other provinces and territories.

And that's a concern because the survey found that six in 10 Canadians don't regularly buy travel insurance, said Julie Barker-Merz, vice-president and chief operating officer of BMO Insurance.

That despite the survey's finding that 40 per cent of respondents reported that either they or a travel companion have required medical attention while on vacation.

The cost of medical treatment in the United States is "always shocking," Barker-Merz said.

For example, the cost of treating a broken leg in the United States can run up to US$20,000 for Canadians and an air ambulance trip from Florida to Ontario can be up to US$15,000, according to the survey released Thursday.

Medical coverage elsewhere can also be expensive, Barker-Merz said, including up to US$40,000 for decompression treatment in Thailand.

"A lot of Canadians think they're covered in areas where they're not, or they think that they're covered through their credit cards or through their employee benefits" when sometimes they are not, she said.

"So certain things won't be covered and we will be out of pocket."

Barker-Merz said when buying travel insurance it's important to understand what is covered and read the fine print.

"There can't be anything more frustrating than having coverage for 10 days and on your 12th day something happens and you're out of pocket and you have to pay for it."

The survey also found that over the last 12 months that 67 per cent of Canadians surveyed reported travelling either within Canada or to the U.S., and 43 per cent travelled overseas.

"With the value of our dollar we have more people leaving the country and putting themselves at risk," she said.

The online survey was conducted by market research firm Pollara with 1,000 Canadians over age 18 between June 14 and 18.

New insurers pool will cover large claims

Canadian insurance companies plan to start pooling resources to protect access to expensive drugs... Read full article here.

New Brunswick Consumer advocate report

Ronald Godin has released his report on insurance rates in the province of New Brunswick. The average price for annual auto insurance dropped for the seventh straight year to $731. The report also notes that provisions to limit the use of credit scores in any insurance underwriting have yet to be enforced.

Online Peer Comparison Tool from ING

Try the Insurance Peer Comparison Tool to see how your auto insurance costs comapre with your peers. The new tool allows users to compare their financial status with others over a number of saving, spending, investing, debt and personal finance matters.