A recent Generali Global Assistance study showed travelers spent 19 percent less on covered trips.
Among travelers who purchased a travel insurance policy last year, coverage was being applied to trips that cost an average of 19 percent less than they had the year before. The data was published by Generali Global Assistance, through its Travel Insurance division.
The travel insurance analysis used the insurer’s proprietary data throughout the 2017 season.
Throughout 2017, the average cost of a trip covered by a travel insurance policy was $1,883. This represented a drop of nearly one fifth (19 percent) of the average insured trip in 2016. As most travel coverage is based on the value of the trip itself, this also brought about a decline in the average premium.
According to the analysis, there was a $139 decrease in the average travel insurance premiums in 2017 when compared to the figures from the year before. The average number of people covered by any given policy stayed about the same at 1.75. The median trip length also remained the same, which was 9 days. There was a slight decrease in the number of days between when the trip and insurance coverage were purchased and the departure date. Last year, it was 81 days. It was 88 days the year before.
The report suggested that people are buying a travel insurance policy to cover a broader spectrum of trips.
Genarali Global Assistance CEO, Chris Carnicelli, was quoted in a press release from the firm. “As travel insurance and its myriad benefits become better understood, people are choosing to insure trips at a lower price point than they did in the past. This is encouraging to see as we, and the industry at large, have placed greater emphasis on transparency to clear up misconceptions that surround travel insurance,” he said.
When looking more specifically at vacation rentals as opposed to travel as a whole, little changed in 2017. Both trip duration and trip cost stayed essentially the same for vacation rental trips for which insurance was purchased.
Vacation rentals are a type of trip and travel insurance policy that often repeat from one year to the next. As a result, the average cost and time families spend on their trips is often steady from one year to the next, explained Carnicelli.