Probability of Filing a Travel Insurance Claim

Approximately 10% of travel insurance policyholders file a claim per trip, though this rate varies by destination, trip length, and coverage type. The most common claim types are trip cancellation/interruption (about 40% of claims), medical emergencies (about 25%), baggage delay or loss (about 15%), and travel delays (about 10%).

The average travel insurance claim is approximately $900-$1,500 for trip cancellation and $2,500-$5,000 for medical claims. International medical claims can be much higher, as medical costs abroad can be expensive and domestic health insurance often provides limited or no coverage overseas. Medical evacuation claims average $25,000-$50,000 and can exceed $100,000 for remote locations.

Despite the 10% claim rate, only about 30-40% of American travelers purchase travel insurance for any given trip. The travel insurance industry has grown significantly since the COVID-19 pandemic, which highlighted the financial risk of unexpected trip disruptions. Typical policies cost 4-12% of the total trip cost. When purchasing, it is important to read exclusions carefully, particularly regarding pre-existing medical conditions, political instability, and pandemic-related cancellations.