One-third of survey respondents (36 per cent) said they are more likely to purchase travel insurance now than before Covid-19 for a trip abroad; and 34 per cent said they are more likely to do so for a domestic trip.
It seems that the changing sentiment towards travel insurance may have come about as a result of increasing travel expenses related to changing travel restrictions. Indeed, battleface’s data highlights that almost half of Americans have faced fees or had to absorb the cost of losses when travelling without travel insurance – and it cites the most common charges as being cancellation fees (19 per cent), fees for changing travel dates (19 per cent), fees for changing travel times (14 per cent), and costs associated with baggage loss or delay (10 per cent).
Well then, this is great news for US travel insurers. Although, maybe not fantastic news, as the US has recently extended its travel ban to 80 per cent of global destinations. But, once travel opens back up a little more in the country, travel insurers will likely see a massive uptick in travel insurance policy sales.
Travellers want cancellation coverage
So, what should travel insurers look to include in cover to help cater to US travellers? battleface notes that when purchasing travel insurance, Americans say their top priorities are:
- Coverage for trip cancellations or delays (44 per cent)
- Coverage for medical expenses (other than Covid-19) while travelling (32 per cent)
- Coverage for personal accidents while travelling (31 per cent), delay or loss of luggage (30 per cent), and being returned home in the event of an emergency (26 per cent)
“As travel resumes and airlines and hotels bring back cancellation or change fees, it’s more crucial than ever to have travel insurance. If 2020 taught us anything, it is that plans can change and that the unexpected does happen,” Sasha Gainullin, CEO of battleface, said. “We are confident that Covid-19 has brought on a shift in the way Americans perceive travel insurance, and that soon purchasing insurance for any kind of trip will be as normal and ingrained in the traveller’s mind as selecting a seat for a flight. We would urge travellers to check international entry requirements, as many countries are now asking for proof of travel insurance upon entry.”