Significant Increase in Travel Insurance Claims and Payouts in 2024 Amid Rising Costs
In 2024, travelers faced unprecedented increases in travel costs, which led many to reconsider the importance of travel insurance. As a result, there was an impressive 18% rise in claims paid out, alongside a striking 37% rise in average payout amounts. This surge brought the average payout to approximately $2,609, a significant increase from the previous year. According to data from Squaremouth.com, the leading travel insurance marketplace, the patterns seen in claims and payouts reflect a broader shift in traveler behavior as protection becomes a priority.
One of the most noteworthy trends in claims was the dominance of Emergency Medical claims for the first time in over a decade. This category accounted for 27% of all claims submitted, reflecting the growing recognition of health-related costs while traveling. The average payout for these claims rose by 14%, increasing from $1,456 to $1,654. This change is particularly significant as it highlights travelers' increasing awareness of potential medical emergencies during their trips.
Concurrently, cancellation-related claims accounted for over 40% of the total paid claims in 2024. This category includes Trip Cancellation, Trip Interruption, and Cancel For Any Reason benefits, demonstrating that unexpected circumstances can prompt last-minute changes to travel plans. Notably, the Trip Cancellation benefit alone represented a significant portion of the claims, with average payouts following suit.
Additionally, travel delays remained an ongoing challenge for many vacationers, despite new pledges from the Department of Transportation (DOT) aimed at reducing inconveniences caused by delayed and canceled flights. There was a 15% increase in claims related to travel delays in 2024, with an average payout rising 8% from the previous year, indicating that travelers are increasingly turning to insurance as a fallback against the unpredictable nature of air travel.
According to Squaremouth, most travel insurance plans are designed to be comprehensive, covering a wide range of potential issues travelers might face on their journeys. This year, as travelers look to purchase policies for their 2025 trips, it’s crucial for them to shop around to find the best coverage that meets their specific needs while remaining budget-friendly.
The methodology behind these insights came from a thorough analysis of claims data sourced from Tin Leg, a travel insurance provider and part of The Squaremouth Group, focusing on claims filed between January 1 and December 31, 2024. This data comparison allowed for an accurate assessment of the changing landscape in travel insurance trends.
Squaremouth.com has secured coverage for over 3 million travelers. The site’s user-friendly quoting and comparison features, along with its award-winning customer support and verified reviews, have enabled travelers to find suitable insurance options that align with their travel plans. As we head into a new year, understanding these trends will be critical for travelers aiming to safeguard their adventures.
One of the most noteworthy trends in claims was the dominance of Emergency Medical claims for the first time in over a decade. This category accounted for 27% of all claims submitted, reflecting the growing recognition of health-related costs while traveling. The average payout for these claims rose by 14%, increasing from $1,456 to $1,654. This change is particularly significant as it highlights travelers' increasing awareness of potential medical emergencies during their trips.
Concurrently, cancellation-related claims accounted for over 40% of the total paid claims in 2024. This category includes Trip Cancellation, Trip Interruption, and Cancel For Any Reason benefits, demonstrating that unexpected circumstances can prompt last-minute changes to travel plans. Notably, the Trip Cancellation benefit alone represented a significant portion of the claims, with average payouts following suit.
Additionally, travel delays remained an ongoing challenge for many vacationers, despite new pledges from the Department of Transportation (DOT) aimed at reducing inconveniences caused by delayed and canceled flights. There was a 15% increase in claims related to travel delays in 2024, with an average payout rising 8% from the previous year, indicating that travelers are increasingly turning to insurance as a fallback against the unpredictable nature of air travel.
| Claim Type by Benefit | % of Claims | Avg. Claim | Highest Claim |
|---|---|---|---|
| ------ | --- | -- | --- |
| Emergency Medical | 27% | $1,654 | $61,976 |
| Trip Cancellation | 26% | $1,456 | $50,102 |
| Travel Delay | 15% | $370 | $2,655 |
| Trip Interruption | 11% | $2,631 | $30,968 |
| Missed Connection | 10% | $395 | $2,500 |
| Cancel For Any Reason | 6% | $2,092 | $18,375 |
| Baggage Loss | 4% | $174 | $1,000 |
| Baggage Delay | 4% | $210 | $600 |
| Medical Evacuation | <1% | $17,086 | $33,640 |
| Rental Car Damage | <1% | $1,209 | $1,987 |
According to Squaremouth, most travel insurance plans are designed to be comprehensive, covering a wide range of potential issues travelers might face on their journeys. This year, as travelers look to purchase policies for their 2025 trips, it’s crucial for them to shop around to find the best coverage that meets their specific needs while remaining budget-friendly.
The methodology behind these insights came from a thorough analysis of claims data sourced from Tin Leg, a travel insurance provider and part of The Squaremouth Group, focusing on claims filed between January 1 and December 31, 2024. This data comparison allowed for an accurate assessment of the changing landscape in travel insurance trends.
Squaremouth.com has secured coverage for over 3 million travelers. The site’s user-friendly quoting and comparison features, along with its award-winning customer support and verified reviews, have enabled travelers to find suitable insurance options that align with their travel plans. As we head into a new year, understanding these trends will be critical for travelers aiming to safeguard their adventures.
Topics Travel）
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