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Emergency Medical Claims Dominate in 2024, Surpassing Trip Cancellations – Image Credit Unsplash+
In 2024, the cost of travel rose significantly, leading to an 18% increase in travel insurance claims from the previous year. This coincided with a 37% increase in payout amounts, rising from an average of $1,900 to $2,609.
Squaremouth.com, a travel insurance marketplace, has reported on the most common claims and travel insurance benefits with the highest annual reimbursement payouts.
Emergency Medical claims were the most common and the highest paid for the first time in over a decade, accounting for 27% of all paid claims. The average payouts for these claims rose by 14%, from $1,456 to $1,654.
Claims related to trip cancellations accounted for over 40% of all paid claims. This included claims within the Trip Cancellation, Trip Interruption, and Cancel For Any Reason categories.
Despite the Department of Transportation’s 2024 pledge to support travelers affected by flight delays and cancellations, travel insurance remained a crucial resource for travelers. The number of paid claims for travel delays increased by 15% in 2024, with average payouts rising by 8% compared to 2023.
The following is the breakdown of claims by benefit in 2024:
|
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
|
