Subject: SVY
Travel Insurance Claims Paid Out 6X Policy Premium in 2023
ST. PETERSBURG, Fla., March 21, 2024 /PRNewswire/ -- New data reveals a 30% increase in paid travel insurance claims filed in 2023.
Squaremouth.com, the nation's leading travel insurance marketplace, reports that paid claims were at an all-time high in 2023. With an average pay out of $1,900 per claim, the average reimbursement exceeded the average travel insurance policy cost by 6-times.
Cancellation-Related Claims Account for Nearly Half of Paid Claims
Nearly half of all paid claims in 2023 were for trips that were canceled outright or cut short. This includes claims within the Trip Cancellation, Trip Interruption, and Cancel For Any Reason benefits.
Notable Stats:
- The most commonly paid out claim in 2023 was Trip Cancellation at 25%, with an average payment amount near $5,000
- Emergency Medical was the second most commonly paid claim, comprising 24% of all paid claims in 2023
- Nearly another quarter of paid claims were due to delays, including Travel Delays and Missed Connections
- Despite being the least common, Medical Evacuation claims were by far the most expensive, with an average payment amount over $10,000
Claim Type by Benefit | % of Claims | Highest Claim | Avg. Claim |
Trip Cancellation | 25 % | $49,427.92 | $4,854.22 |
Emergency Medical | 24 % | $48,380.33 | $1,456.24 |
Travel Delay | 14 % | $3,398.75 | $473.71 |
Trip Interruption | 13 % | $58,607.58 | $2,782.68 |
Missed Connection | 9 % | $2,168.26 | $471.69 |
Cancel For Any Reason | 6 % | $25,620.00 | $2,111.13 |
Baggage Loss | 5 % | $1,439.88 | $208.18 |
Baggage Delay | 4 % | $649.88 | $207.51 |
Medical Evacuation | <1% | $27,592.34 | $10,838.83 |
*Cost comparison chart image above available for view/download here.
Most travel insurance policies are comprehensive and include coverage for all of the benefits listed above. When considering travel insurance in 2024, travelers should take the time to compare their options to find the policy with the coverage they need for the best price.
The Number of Cancel For Any Reason Reimbursements Tripled in 2023
In 2023, paid claims for the Cancel For Any Reason benefit exceeded 2022 reimbursements 3-fold, making it one of the highest payout travel insurance benefits.
Notable Stats:
- Cancel For Any Reason claims reimbursed travelers an average of $2,111
- The highest paid claim for the CFAR benefit was more than $25,000, double the highest payout in 2022
Cancel For Any Reason is an optional upgrade that can be added to some policies. This benefit provides the most possible cancellation flexibility for travelers and can reimburse up to 75% of their trip cost.
Methodology: Squaremouth analytics compared travel insurance claims data from Tin Leg between January 1 and December 31 of 2023 to compare policy prices to claim payouts. Tin Leg is a travel insurance provider and member of The Squaremouth Group since 2014.
Notes to editors
Available Topic Expert: Jenna Hummer, is available for comment and interview. [email protected]
About Squaremouth: Squaremouth.com has insured over 3 million travelers. Using Squaremouth's intuitive quoting and comparison engine, award-winning support team, and veri?ed customer reviews, travelers can save time and money to ?nd the best travel insurance policy for their trip.
SOURCE Squaremouth
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