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Who Has Travel Insurance? And What Does Their Insurance Cover?
A recent report from YouGov showed 3% of Americans say they cover their trips with travel insurance policies. Among those individuals who have invested in travel insurance, 38% are Millennials, followed by Baby Boomers at 27%, Generation X at 18% and the Silent Generation at 15%. More specifically, travel insurance policy holders were proven to be more likely to come from households bringing in more than $60,000 a year, with 33% stating they are parents of children under the age of 18.
According to YouGov, among leisure travelers who took out travel insurance policies for their most recent trips, 52% chose policies that cover trip cancellations. 35% took out travel health insurance, while 30% chose accident insurance policies. An additional 22% took out curtailment policies, which reimburse travelers that have to cut their trips short, and 16% took third-party policies that covers liability.
Marketers Must Understand How And When Travelers Are Shopping For Insurance
Understanding the different deciding factors that consumers rely on before booking travel can significantly help travel insurance marketers reach new consumers and have the most success at winning them over. 8% of leisure travelers shared they plan to book their next vacations between April and August, with July coming in as the top month for booking travel. Leisure travelers are also more likely to discover travel insurance information through personal friends and family recommendations, visiting travel insurance websites they are familiar with or looking through the websites of financial advisors.
The Reasoning Behind Consumers Choice To Opt Out Of Travel Insurance
Equally as important as marketers understanding the reasoning behind consumers’ decisions to obtain travel insurance, is travelers’ reasoning behind not using travel insurance. According to YouGov’s survey, the majority of travelers (42%) did not consider travel insurance a necessity for the type of trips they were embarking on. 36% said they didn’t see any risks when going on vacation, while 30% of respondents believe travel insurance is too expensive. Among the other reasons for travelers choosing to travel without insurance is a lack of trust for the offering, the insurance policies did not meet the consumers’ expectations and a handful of travelers shared they were unaware that travel insurance options existed.
Today’s unpredictable world of events can drastically impact the travel industry — a fact that has become increasingly apparent in the wake of the virus known as COVID-19, which has disrupted plans for millions of travelers worldwide. And while not all travel insurance policies will cover cancellations, many businesses have had to adjust to the current circumstances, with companies offering “cancel for any reason” plans seeing a major spike in new customers. Just like any other evolving industry, travel insurance marketers will need to recognize new strategies to reach consumers and prove the benefits of purchasing insurance before traveling.
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