As travel costs rose in 2024, so, too, did travel insurance payouts.
According to insurance marketplace Squaremouth.com, 2024 saw an 18% increase in paid claims compared to the year prior, with payment amounts growing a whopping 37%, from an average of $1,900 to $2,609.
Squaremouth based its data on insurance claims data from the whole of 2024 from Tin Leg, a travel insurance provider.
Emergency medical claims were the most common type of claim filed in 2024, accounting for 27% of all claims, according to Squaremouth. The average claim paid out $1,654; the highest paid $61,976.
The next most common claims were trip cancellation at 26%, with an average claim of $1,456; travel delay at 15%, with an average claim of $370; trip interruption at 11%, with an average claim of $2,631; and missed connection at 10%, with an average claim of $395.
Cancel-for-any-reason claims accounted for 6% of claims, with an average claim of $2,092. Baggage loss and delay each accounted for 4% of claims, with average claims of $174 and $210, respectively.
Accounting for less than 1% of all claims were medical evacuation (average claim of $17,086) and rental car damage ($1,209).
Squaremouth said 2024 marked the first year in more than a decade that emergency medical benefits became the highest paid and most frequently claimed, surpassing trip cancellation.