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- Business Insider conducted a travel insurance survey of 971 US adults in December 2023 through Momentive AI Audience.
- It found that most travelers who bought travel insurance were concerned about their travel provider or their health.
- The survey also uncovered that most travelers would be willing to pay for insurance in the future.
- Compare travel insurance coverage options and rates with SquareMouth.
Business Insider conducted a travel insurance survey of 971 US adults in December 2023 through Momentive AI Audience.
About 80% of those surveyed traveled for non-business reasons in the past year. Those travelers were most likely to travel internationally, by airplane (24%), or across state lines, by car (24%) or by airplane (18%). About 15% of respondents had traveled within their own state, by car. Of travelers surveyed, most (56%) paid $1,000 or less for their trip, while the vast majority (77%) paid $2,000 or less for their trip.
Among those travelers:
- The largest group of insured travelers (35%) bought insurance primarily because they feared issues like delayed flights or moved reservations, while about 29% were worried about a health emergency
- When researching travel insurance options, many buyers (28%) used suggestions and recommendations from family and friends
- The majority of insured travelers (55%) purchased their policy through a travel provider
- Of travelers who did not purchase insurance, 35% said their primary reason was because they'd never needed it on previous travels, and 19% said they didn't think their trip was expensive enough to insure
- Most people surveyed (68%) say they would be willing to pay some amount for travel insurance in the future
Why people buy travel insurance
Roughly 38% of surveyed travelers purchased insurance for their trip. About 13% of overall respondents purchased cancellation insurance, and 11% purchased cancel for any reason insurance (CFAR). Another 14% said they purchased travel insurance, but were unsure what kind. The average cost of travel insurance varies by trip cost, destination, and age, but typically falls between $80 and $160 for a $2,000 trip.
The largest group of travelers (35%) who bought insurance did so primarily because they were concerned about the travel provider they booked with, and feared issues like delayed flights or moved reservations. About 29% were worried about having a potential health issue, and about 18% found the value or overall price to be appealing. About 11% said they always buy travel insurance out of habit, and just 5% said a friend had recommended it.
However, the largest percentage (28%) of travelers who purchased insurance researched their options by asking a friend or family member, followed by a review site, blog, or social media influencer (24%). Another 22% of respondents researched their options through a travel agent, and about 19% said they didn't do research at all.
Where travelers purchase their policies
The majority of insured travelers (55%) purchased a policy through a travel provider such as a booking engine like Expedia, or through an airline, a cruise provider, a tour group, or similar. The next most common place to purchase insurance was a travel agent (17%), followed by an insurance marketplace (13%).
Of those who responded to the survey, about 18% had purchased travel insurance and made a claim, while 24% had not made a claim on their coverage. Of those who made a claim, about half were satisfied with the outcome, and half were not.
When asked if they use any travel insurance features from their credit card — like trip delay coverage, baggage delay coverage, or rental car coverage — 33% of overall respondents said they did. However, more than a third of respondents whose credit cards carry these features said they still purchased separate travel insurance. Another 33% didn't know whether their cards come with this type of coverage.
Many travelers still don't see the need for insurance
About 62% of travelers surveyed did not purchase travel insurance; of those travelers, 35% said their primary reason to forgo insurance was because they'd traveled before and never needed it. About 19% said they didn't think their trip was expensive enough for insurance, and about 14% said they were trying to save money. About 13% said travel insurance never occurred to them. Only about 5% said they get travel insurance elsewhere, like through a credit card.
Travelers whose trips went as planned were largely happy with their decision not to purchase travel insurance: Over 70% said they didn't regret their decision to pass on a policy because nothing went wrong on their trip. Another 24% said they don't regret their choice simply because they never thought about travel insurance. About 6% of respondents felt differently: Nearly 4% wish they had purchased insurance because it would have given them peace of mind, and 2% regret their choice because something went wrong on their trip.
Most travelers would be willing to pay for insurance in the future
This holiday season, thousands of travelers experienced cancellations and delays and were even stranded at airports when Southwest airlines canceled 60% of its flying schedule, leaving travelers with little recourse.
About 68% of travelers surveyed by Insider — both those who had and hadn't purchased travel insurance in the past year — said they'd be willing to pay for travel insurance in the future to protect a weeklong, non-business trip. Most (49%) were willing to pay up to $150 for coverage, and some (13%) were willing to pay up to $250. Only about 5% were willing to pay more than $250, and about 32% were not willing to pay at all.
As we continue to see travel delays and disruptions, travel insurance will become more important and will be viewed as a necessity and not just an expense. The cost of travel insurance is small relative to the trip costs you can protect.
Executive Editor, Personal Finance Insider
Libby Kane is a personal finance expert who has reported and edited stories about money for more than 10 years. She holds the Certified Financial Education Instructor (CFEI) certification issued by the National Financial Educators Council.ExperienceShe has written and edited articles on everything from investing tips to model budgets and has interviewed dozens of authors, financial planners, and early retirees to share their advice, experiences, and insights with a global audience.Before joining Business Insider in 2014, she was an associate editor at LearnVest, a personal finance site to help women learn about money. Her work has appeared on sites such as MSN, AOL, Forbes, Slate, and The Street.Her team at Business Insider has tackled projects including:• Women of Means, a series about women taking control of their finances• Inside the Racial Wealth Gap, an exploration of the causes, effects, and potential solutions of the racial wealth gap in the US (finalist, Drum Award, "Editorial Campaign of the Year," 2021)• Strings Attached, a series of essays from people who have left insulated communities and how that journey affected their relationship with money• Master Your Money, a year-long guide for millennials on how to take control of their finances (first runner up, Drum Award, "Best Use of Social Media," 2022)• The Road to Home, a comprehensive guide to buying your first house (silver award winner, National Association of Real Estate Editors, "Best Multi-Platform Package or Series – Real Estate," 2022)Libby believes in one universal truth about money: Advice is never for everyone. The best strategies, tools, and products depend on your preferences, financial situation, history with money, and goals.ExpertiseHer expertise includes:• Behavioral finance• Early retirement• Budgeting• Saving moneyEducationLibby holds a bachelor's degree from Wellesley College.Outside of personal finance, Libby enjoys reading, baking, and walking her dog.
Senior Personal Finance Reporter and Spokesperson
Jennifer Streaks is a Personal Finance Expert and Journalist who writes about credit and all things money for Business Insider. Committed to financial literacy and economic empowerment, she has covered financial topics for over a decade, writing about her own experiences and sharing her expertise to give consumers actionable financial advice.Along with exploring credit scores, credit reports, and how to build credit, Jennifer analyzes how current economic trends impact everyday people and offers her expert advice on budgeting, saving, and growing wealth in today’s economy. She regularly appears as an on-air financial commentator on programs like Good Morning America, Yahoo! Finance, CBS, and MSNBC.ExperienceBefore joining Business Insider, Jennifer was a financial contributor for CNBC and covered personal finance, entrepreneurship, tech, and the economy for Forbes. Her work has appeared in TheGrio, Black Enterprise, and USA Today.Jennifer is also the author of "Thrive! ... Affordably: Your Month-to-Month Guide to Living Your Best Life Without Breaking the Bank." The book offers advice, tips, and financial management lessons geared toward helping the reader highlight strengths, identify missteps, and take control of their finances.Jennifer’s most important financial advice to her friends is to always have an emergency fund.ExpertiseJennifer’s expertise includes:
- Credit scores
- Credit history
- Credit reports
- Budgeting
- Saving
- Housing
- Retirement
- The economy
- Financial trends
EducationJennifer earned an MBA from The Johns Hopkins University Carey School of Business and completed the Wharton Seminar for Business Journalists.Jennifer is based in New York City.
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