Squaremouth's data represents a snapshot of the entire travel insurance industry
St. Pete Beach, FL (PRWEB) September 24, 2007
Squaremouth, a leading online travel insurance comparison site, today releases national statistics about who purchases travel insurance products. Analysis of Squaremouth's sales data reveals trends in the following categories: time of purchase; top states with residents purchasing travel insurance; travel destination; spending patterns compared between domestic and international; trip duration; trip cost; number of travelers; and consumers' ages.
The data contained in this report is intended to provide an overview of current and historical travel and travel insurance market trends, according to Squaremouth.com's CEO Chris Harvey.
Data is provided by the comparison engine Squaremouth.com and covers four years of sales statistics dating back to March 2003. Sales from 17 travel insurance carriers are represented with more than 250 products covering every type of travel insurance policy available for purchase.
This report is updated every quarter and can be found at:
Harvey says an interesting finding after analyzing several sales data components is that the largest percentage of people purchasing travel insurance are single travelers. He also stated that data revealed that travel insurance policies, on average, were less expensive for three and four travelers compared to two people traveling.
"One reason for multiple travelers' policies costing less could be attributed to trip duration and cost," Harvey explains. "Couples, particularly those who are retired, tend to have more disposable income and are taking more expensive trips."
This concept is also supported by the statistic that those travelers 50 years old and above pay nearly twice the amount for a travel insurance policy than those under 50, he adds.
Travelers with foreign trips purchase travel insurance nearly eight times more often than those traveling domestically. "Medical coverage is probably the biggest driver when purchasing travel insurance for international travels in my experience. Many U.S. health insurance policies do not cover the policy holder while abroad."
In terms of demographics, Harvey says that California, New York and Florida represent the top three states in terms of travel insurance purchases, California has by far the highest spending residents compared to others and that Mississippi residents are, on average paying the most per policy.
Following are the data findings for Squaremouth.com's analysis:
Breakdown by Hour of day of travel insurance purchases
85% of sales occur between 9:00AM and 7:00PM EST
Vast majority of people buy travel insurance during office hours
Breakdown by Resident State of travelers who also buy travel insurance
1. California residents account for 17.28% of sales with an average per policy premium of $192.72
2. New York residents account for 9.29% of sales with an average per policy premium of $152.05
3. Florida residents account for 6.94% of sales with an average per policy premium of $204.74
4. Texas accounts for 4.46% of sales with an average per policy premium of $174.39
5. New Jersey accounts for 3.58% of sales with an average per policy premium of $183.82
Another key finding: Mississippi residents spend the most on average at $227.11 per policy premium
Destination of Travelers Who Buy Travel Insurance
Domestic travel accounts for 11.97% of sales with an average per policy premium of $126.18
Foreign travel accounts for 88.03% of sales with an average per policy premium of $166.82
European travel accounts for 30% of sales with an average per policy premium of $172.00
Highest average per policy premium is for world cruises with an average of $2,825.00
Foreign vs. Domestic Travel as a Percentage
Americans who buy travel insurance for domestic trips spend 5.46% of their trip cost on travel insurance
Americans who buy travel insurance for foreign trips spend 5.67% of their trip cost on travel insurance
Foreign vs. Domestic Travel Comparing Trip Length
Average trip length for domestic trips is 10.18 days
Average trip length for foreign trips is 16.34 days
Foreign vs. Domestic Travel Comparing Trip Cost
Average trip cost for foreign travel is $2,945.03
Average trip cost for domestic travel is $2,312.41
Number of Travelers Per Travel Insurance Policy
44.22% of policies purchased are for a single traveler with an average per policy premium of $102.37
39.76% are for two people with an average per policy premium of $225.12
5.97% are for three people with an average per policy premium of $187.79
6.79% are for four people with an average per policy premium of $215.95
1.78% are for five people with an average per policy premium of $242.00
Breakdown by Age of Travel Insurance Purchasers
20-30 year olds account for 15.6% of sales with an average per policy premium of $95.43
30-40 year olds account for 18.34% of sales with an average per policy premium of $114.24
40-50 year olds account for 18.29% of sales with an average per policy premium of $150.18
50-60 year olds account for 20.77% of sales with an average per policy premium of $185.44
60-70 year olds account for 15.21%% of sales with an average per policy premium of $264.89
Over 70 year olds account for 7.69% of sales with an average per policy premium of $311.97
Under 50's spend an average of $120.85 per policy premium
Over 50's Spend an average of $235.39 per policy premium
Travel Insurance Providers Represented in the Data:
Access America, AIG Travel Guard, CSA, Global Alert Admin, Global Underwriters, HTH Worldwide, ITravel Insured, Medex, Medjet Assist, MH Ross, Multinational Underwriters (MNU), Seven Corners, Travel Insured, Travelers Liberty, Travelex, TravelSafe, USA Assist.
"Squaremouth's data represents a snapshot of the entire travel insurance industry," Harvey says. "This data can be relied upon as it is four years of data analyzing practically every third party travel insurance provider and available product."
Squaremouth does not favor any third party travel insurance partner over another, nor does the company target one specific travel niche such as retired or adventure travel. Additionally, when a customer is reviewing policies, they are comparing apples to apples as product information is standardized, Harvey adds.
More detailed information and data relating to specific or niche requests are available upon request. To learn more about Squaremouth, please visit http://www.squaremouth.com.
Founded in 2001, Squaremouth.com helps travelers easily and instantly compare all the major travel insurance plans. To ensure customer satisfaction, all carriers are handpicked based on an internal rating system and also ratings from insurance industry watchdog AM Best. Only companies that meet Squaremouth's strict requirements make it into the system. Along with its unique research capabilities and zero complaint guarantee, the site provides instant quotes, immediate purchase and instant confirmation. Visit http://www.squaremouth.com for more information.
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