5 Reasons More People Are Investing in Travel Insurance
The economic slowdown has not stopped travelers. Instead of purchasing tangible goods, more people are choosing to spend money on experiences. For example, the travel industry remains resilient in 2023 despite rising costs and uncertainties around airlines. In fact, one survey reports that 61% of respondents plan to take more vacations—and longer ones, too.
We’re happy to hear that about 40% of travelers are safeguarding their trips by getting travel insurance—a percentage that’s nearly doubled since early 2020.
Is Travel Insurance Worth It?
Why are more people investing in trip protection? Let’s take a look at the ins and outs of this growing trend.
Trip Protection is in Demand Due to More Flight Cancellations
Travelers simply can’t depend on airlines to get them where they need to go. For example, in 2022, almost 3% of flights were canceled (the highest cancellation rate in a decade). More alarming, Forbes Advisor reported that airlines in the U.S. alone canceled 4,310 flights between April 2nd and April 9th in 2023.
With airline dependability worsening, more vacationers have prioritized purchasing travel insurance to have a reimbursement strategy to mitigate losses from last-minute cancellations and flight delays.
Complex Flight Routes Lead to More Problems
Airlines are attempting to maximize passenger loads by adding more stops that could cause travelers to miss connections or lose luggage. This is particularly problematic for folks traveling internationally or those with complex itineraries.
More people are hedging their bets by purchasing travel insurance to protect their belongings from mishaps caused by complicated itineraries.
There’s an Increasing Need to Insure Luggage
A recent Air Travel Consumer Report by the Office of Aviation Consumer Protection found that airlines mishandled 256,071 pieces of luggage in January 2023, an increase of over 5% compared to the year prior. Fortunately, The U.S. Department of Transportation has rules in place should an airline be liable for a damaged or lost bag.
However, the maximum reimbursement authorized by USDOT’s regulation is $3,800 per passenger. For international flights, reimbursement is less than half of that. In addition, an airline can also exclude items like fragile goods, cash, electronics, and other valuables from a claim, further burdening the traveler if a bag is lost or delayed.
Given the increase in damaged and lost luggage, more wayfarers are turning to travel insurance to increase their chances of financial reimbursement should baggage issues take flight.
Travelers Have More Insurance Options & Easier Access to Them
There are now a variety of travel insurance options easily available online. The options and accessibility allow travelers to find exactly what they need quickly and efficiently.
At JD Fulwiler & Company Insurance, we provide a variety of travel insurance policies that can be tailored to individual needs, including the following:
Single trip Travel Insurance: Coverage designed for those embarking on a one-off trip or who are visiting multiple destinations.
Annual Trip Insurance: Coverage made for those traveling and returning home multiple times annually. This option is particularly useful for business travelers.
HTH Travel Insurance & GeoBlue: Medical and international insurance plans that help global travelers get access to quality healthcare and coverage for medical bills should the need arise.
No matter where you’re headed in the world, we provide trip protection options designed for peace of mind. Contact us today to schedule a consultation.
Protecting a Trip Investment is the New Normal
More people value protecting their travel investments in case of the unknown. Others reasonably get insurance because they can’t afford to lose the money they used to fund their dream vacation.
So, what does travel trip insurance cover? While coverage depends on the policy and provider, a plan may offer reimbursement for the following reasons:
- Canceled flights or delays
- Medical emergencies, death, or illnesses
- Theft or fraud while on vacation
- Lost luggage
- And other unexpected circumstances that occur while traveling
The best way to find a policy suited to your unique needs is by talking to an insurance expert by contacting one directly.
How Do I Get Travel Insurance for My Trip?
We’re excited to see more vacationers protect their investments by enrolling in a travel insurance policy. Fortunately, accessing trip protection before boarding a plane is easier than ever.
Contact the experts at JD Fulwiler to discuss your travel plans and receive a custom quote.
