Rising travel costs led to a big shift in travel insurance payouts in 2024
US travel insurance comparison site Squaremouth has revealed the most common claims and the travel insurance benefits that saw the highest reimbursement payouts last year
As travel costs surged in 2024, more travellers sought protection through travel insurance, leading to an 18% increase in paid claims over the previous year, according to Squaremouth. This rise in claims coincided with a dramatic 37% spike in payout amounts, which grew from an average of US$1,900 to $2,609.
Emergency medical claims surpassed trip cancellation for first time in over a decade
For the first time in more than 10 years, emergency medical became the single highest-paid and most frequently claimed benefit, accounting for 27% of all paid claims in 2024. Average payouts for emergency medical claims increased 14%, rising from $1,456 to $1,654.
Cancellation-related claims account for majority of paid claims
Over 40% of paid claims in 2024 stemmed from trips that were either cancelled or cut short. This includes claims within the trip cancellation, trip interruption, and cancel for any reason benefits.
Travel delays continued to cause headaches
Despite the US Department of Transportation’s 2024 pledge to support travellers affected by flight delays and cancellations, travellers still relied heavily on travel insurance to make travel delays less expensive and more comfortable. Paid claims for travel delays increased 15% in 2024, with average payouts increasing 8% compared with 2023.
|
Claim type by benefit |
% of claims |
Average 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 |
The ITIJ team recently considered how the travel industry would progress in 2025.
Chloe Fox
Chloe Fox is an Editorial Assistant for Voyageur Group, joining in 2024. She writes for ITIJ and AirMed&Rescue, covering a range of topics including international travel and health insurance, medical assistance provision, and air medical transportation. Chloe holds a BA (Hons) in English and an MA in English Literature from the University of Bristol.