Do You Add Trip Protection or Travel Insurance to Your Reservation?
Ok, THIS post is ignited by my experience with an airline (after NOT taking the travel insurance), that made me think thoughts I hadn’t had since I last deployed. I was out and about in Vegas and headed to Houston on Frontier Airlines via a flight I’d booked weeks in advance…after four delays…a trip to the restroom only to return to get the announcement that my flight had been unceremoniously canceled and no they were not going to book me onto another flight and whatever my situation, I was going to have to pay for a brand new flight on another airline if I was to make my arrival deadline in Texas. I booked ANOTHER full-fare flight on a different airline and got where I needed to be. What really irritated me to no end was Frontier ONLY wanted to give me a $100 voucher and NOT reimburse me the maximum $1,200 I was entitled to. Not only didn’t I have time to go through all of the nonsense they wanted me to deal with to get squared away, but the attitude was funky as a Limburger cheese as well. And sooooooo…I still chastise myself for not adding the trip insurance as any reasonable person would these days.
As an exercise in not eviscerating Frontier Airlines, I decided to go into research mode and find out the percentage of people who like me, roll the dice and go without travel insurance versus those who take it during the booking process….I connected with a research partner who ran the percentages for me:
My assist came via the analytical team at CasinospotFR which conducted research and prepared information in tables that provide a comprehensive overview of the growth and regulatory evolution in the travel insurance market, reflecting how more and more people are opting for trip protection when making reservations.
Table 1: Travel Insurance Market Overview
|
Year
|
Total Spending on Travel Protection (USD)
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Number of Protected People
|
Number of Plans Sold
|
|
2021-2022
|
4.27 billion
|
77 million
|
49.3 million
|
Table 2: Types of Travel Insurance and Popularity
|
Type of Insurance
|
Percentage of Total Plans Sold
|
Description
|
|
Trip Cancellation/Interruption/Delay
|
89%
|
Covers expenses due to trip cancellation or delay, commonly due to illness or flight issues.
|
|
Baggage Loss/Delay
|
Secondary Coverage
|
Covers lost, stolen, or damaged baggage and personal items.
|
|
Travel Medical
|
Secondary Coverage
|
Provides health and accident insurance abroad.
|
|
Medical Evacuation
|
6.3%
|
Covers emergency transport to medical facilities.
|
|
Cancel For Any Reason(CFAR)
|
Not specified
|
Allows cancellation for any reason not covered in the original plan with a partial refund.
|
Table 3: Insurance Purchase Considerations and Costs
|
Consideration
|
Detail
|
|
Cost
|
Typically 4-8% of the total trip price, with CFAR adding close to 50% more to the total travel insurance cost.
|
|
Purchase Time Frame
|
CFAR policies usually require purchase within a specific time frame and full insuring of the trip cost.
|
|
Policy Exclusions
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Common exclusions include pre-existing health conditions, pandemics, civil unrest, pregnancy, childbirth, and risky activities.
|
|
Non-Insurance Bundles
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Often include cancellation fee waivers and travel assistance services. Only insurance products are overseen by state insurance departments.
|
Table 4: Regulatory Developments in Travel Insurance
|
Year
|
Event
|
Outcome
|
|
2016
|
Appointment of Travel Insurance Working Group by the Property and Casualty (C) Committee.
|
Consideration of a model law or guideline for regulating the travel insurance industry.
|
|
2018
|
Adoption of model law by NAIC membership.
|
Defines regulatory structure related to travel insurance including market regulation and enforcement.
|
|
2023
|
Adoption of the rule by 29 of the 50 states.
|
Improved consistency and specificity in travel insurance regulation across the states.
|
Table 5: Market Conduct Examination Standards Changes (2019)
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Standards
|
Description
|
|
2019
|
Introduction of standards relating to travel insurance to improve market conduct examination.
|
My final word on the subject…I do not plan on skipping the travel insurance again…summer is coming, and my schedule is insane this year…for me, the added expense is worth it. Share your thoughts!
About the Author
Dr. Jerry Doby Editor-in-Chief of The Hype Magazine, Media and SEO Consultant, Journalist, Ph.D. and retired combat vet. 2023 recipient of The President's Lifetime Achievement Award. Partner at THM Media Group. Member of the U.S. Department of Arts and Culture, the United States Press Agency and ForbesBLK.
