45+ Interesting Travel Insurance Statistics in 2023

For a lot of people travel insurance is a vital factor in their vacation plans as it helps to put their mind at ease. Surprisingly, 41% of citizens do not purchase travel insurance when they go on their vacations. So why do people choose not to purchases travel insurance? Our travel insurance statistics below explore top statistics, travel insurance industry trends, demographic statistics, the costs that occur when you don’t purchase travel insurance, claim statistics, and coronavirus statistics concerning travel.

Read on for our Editor’s top picks!

• 5.5% of the total cost of trips is travel insurance.
• $3.8 billion was spent on all the different types of travel protection (America). In 2010 this was $1.8 billion so there has been a 111% increase.
• Shockingly 41% of US citizens do not purchase travel insurance when they go abroad.
• 12% of trips have been affected by some form of a natural disaster.
• 94% of travel policies in the US are accounted for by trip cancellation.
• In 2019, the global travel insurance market was valued at $19.2 billion this is expected to increase to $39.3 billion by 2027. A compound annual growth rate of 17.4%.
• In 2020, the market size of travel insurance in the U.S. is $2.5 billion.
• The average cost of travel insurance in the U.S. was $148.
• 29% of younger U.S. citizens and 25% of those earning over $50,000 are the most likely to purchase travel insurance.

The Coronavirus pandemic has massively impacted the travel insurance market, it has resulted in some record-high pay-outs. It has also shown how vital travel insurance is within vacation plans as a lot of unexpected risks can arise, unsurprisingly, 94% of travel policies in the U.S. are accounted for by trip cancellations. The travel insurance market is a multi-billion-dollar industry, and this is expected to continue to grow in the future.

40% of Americans stated that they would likely purchase travel insurance for their international trips in the future. However, shockingly 41% of U.S. citizens do not purchase travel insurance when they go abroad. Read on for more facts about travel insurance.

• 65.8 million were protected in 2018, by over 46.3 million plans.
• In 2016 consumers spent around $2.8 billion this increased to $3.8 billion in 2018.
• There was a 49.1% increase between 2016 and 2018 in the number of people covered by travel insurance and a 36.5% increase in the number of plans sold.
• Travel insurance statistics show that only 30% of all passengers buy travel insurance. This increased by 10% after the 2001 terrorist attack on the world trade center.
• Around 4-8% of the total trip away is the cost of travel insurance.
• 94% of policies sold in the U.S. cover trip cancellation.
• Travel insurance facts show that the main reasons why people buy travel insurance are: cost of the trip (70%), health concerns (69%), how far in advance the trip was booked (61%) and lastly, recommendations made by family or friends (57%).
• 7.8% of travel insurance plans are accounted for by Medical Evacuation.
• Natural disasters have affected 12% of all travelers.
• There has been a 51% increase in the cost of travel insurance between 2006-2012.

Travel insurance refers to the cover of expenses for trips and helps to minimize the risks during travel. Currently, the global travel insurance market size is valued at $19.2 billion this is expected to reach $39.3 billion by 2027. This is a growing CAGR between 2020 and 2027 of 17.3%.

• 3.1% is the average travel industry growth between 2015 and 2020 (slowing down during 2020 to 2021 because of Covid).
• The travel insurance market in the U.S. is $2.5 billion in 2020.
• In the UK the travel insurance market was valued at $658.53 million in 2018.
• Travel insurance market data shows that over 6,080 people are employed in this industry in the U.S. it also has 293 businesses.
• American International Group Inc. is the leading provider of travel insurance.
• During 2020-2027 the Annual Multi-Trip Travel Insurance segment exhibiting the highest CAGR (21%).
• $148 is the average cost of travel insurance.
• In 2019, 4% of the overall insurance market share was accounted for by travel insurers.
• Travel insurance market data shows that in 2020 there is expected to be a decline of -2.6% due to COVID-19 but this is expected to recover in the third quarter.

Research shows that those who buy travel insurance tend to be higher educated, earn a higher income, and travel more frequently than those who don’t. It also depends on the type of trip and destination as those traveling overseas are 3 times more likely to buy travel insurance.

• The percentage of Americans who use travel insurance is 38%.
• 29% of younger U.S. citizens and 25% of those earning over $50,000 are the most likely to purchase travel insurance.
• Facts about travel insurance show that only 25% of women insured all their trips in 2020, compared to 46% of men.
• 18-24-year-olds are the least likely to buy travel insurance as 40% travel without.
• Just behind is 25-34-year-olds, 38% travel without insurance.
• The percentage of both these age groups has increased by 31%.
• 25% of 35-44-year-olds and 23% of 45-54-year-olds travel without insurance.
• Travel insurance facts reveal that ages 55+ are the most cautious age group as only 14% go without travel insurance.
• The highest CAGR of 19.7% was exhibited by the Business Travelers segment.

Travel insurance is important and should be an essential part of your trip. It covers a variety of different risks such as unforeseen medical expenses and other travel-related emergencies like losing your passport or checked-in baggage.

The top reasons as to why people travel without insurance include:

• Too expensive (42%)
• Short vacation (28%)
• Forgot (25%)
• Did not think it was necessary (16%)
• Waste of money (8%)

• The average cost of a doctor’s visit without insurance is $1,295 whilst visiting abroad.
• 27% of British holidaymakers have risked invalidating their insurance. They have done this by not telling their insurance company about a pre-existing medical condition or participating in activities that weren’t covered.
• There are occasions where if you don’t have travel insurance your passport could be confiscated.

In the UK, there was a travel insurance claim every minute in 2020. Whereas in the U.S. around 20 people make a claim every minute. Read on for more travel claims facts and for information on what travelers are claiming for.

• In the UK in 2020, 568,000 individuals and families claimed travel insurance.
• In 2020, £465 million was paid out by travel insurers.
• Most of the claims made were for medical expenses (£238 million).
• £165 million was paid out for canceled holidays.
• £21 million was paid out to 86,000 travelers for lost money/baggage.
• 87.6% of claims are paid out.
• £1,300 is the average claim for medical expenses. This has increased by 40% since 2011.
• 3.8 million UK citizens visit the U.S. every year. The biggest claims made by Brits include:
  • Treatment for stroke and an air ambulance back to the UK was the biggest claim (£760,000)
  • A traveler failed to disclose their inhaler prescription and had their £300,000 medical claim denied.
  • The third biggest claim was for over £250,000. A Traveller fell off a bicycle and needed medical treatment for a broken shoulder and brain hemorrhage.

Unbelievably 25% of U.S. citizens have taken a vacation during the pandemic. A lot of people are opting for “staycations” or have outright canceled their travel plans (40%). Flying is not a popular form of transport as 72% of people are driving to their destination to avoid airplanes.

• 27% Of Americans Have Taken A Vacation During COVID-19
• 37% of people have put their travel plans on hold.
• 15% of people have taken a “staycation”.
• 40% of people have canceled their vacation and 23% have postponed it.
• 64% of people do not feel safe flying on a commercial plane now and 34% will wait until a vaccine before flying again.
• 28% of people took their vacation in March and 22% took it in June.
• Travel insurance and Covid-19 statistics show that 58% of people purchased travel insurance for their vacation.
• 52% of people drove to their destination and 72% drove to avoid taking a flight.
• 70% have said that their vacation destination changed due to the pandemic and 81% avoided large cities.
• 55% of people have said that their vacation was longer than it usually would be.
• 85% of people have used their vacation home to work remotely because of the virus.

Travel insurance is not purchased by everyone and is most popular amongst the older generation due to the added expense, ages 55+ are the most careful age group (only 14% go without travel insurance). The Coronavirus outbreak is likely to change people’s perception towards travel insurance as 58% of people have purchased travel insurance this year, travelers are likely to become more cautious. Similarly, to how there was a 10% increase in travel insurance purchases after the 2001 terrorist attack on the World Trade Centre.  Here at Jersey Island Holidays we’d always recommend buying travel insurance, especially when you travel to Jersey – see our guide on Jersey travel insurance