As travel costs rose in 2024, more travelers purchased travel insurance resulting in an 18% increase in paid claims compared with the previous year, according to data released by Squaremouth.
The increase in claims coincided with a 37% rise in payout amounts, which grew from an average of $1,900 to $2,609.
Squaremouth analytics compared travel insurance data from Tin Leg, a travel insurance provider, between January 1 and December 31, 2024.
According to Squaremouth, emergency medical claims became the highest-paid and most frequently claimed benefit for the first time in more than 10 years. Claims under this section represented 27% of all paid claims in 2024. The average payout for emergency medical claims rose 14% to $1,654 from $1,456.
Meanwhile, more than 40% of paid claims in 2024 were related to trips that were cancelled or shortened. This includes claims under the trip cancellation, trip interruption and cancel for any reason benefits.
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 |
Despite the Department of Transportation’s 2024 pledge to support travelers impacted by flight delays and cancelations, travelers still relied on travel insurance to mitigate the costs and inconvenience of delays. Paid claims for travel delays rose 15% in 2024, with average payouts increasing 8% compared with 2023, according to the report.
In 2023, the company said the travel insurance sector saw a 30% increase in the total value of claims paid out to policyholders, with payouts averaging $1,900 per claim. Trip cancelations constituted 25% of all claims, while emergency medical claims constituted 24% of all claims.