A recent surge in passport applications has led to significantly extended waiting periods for applicants. New data from travel insurance marketplace Squaremouth confirms these delays come at a time of growing demand for international travel, and offers advice for concerned travelers.
Squaremouth Analytics compared sales data from thousands of international travel insurance and “Cancel For Any Reason” (CFAR) policies purchased between January 1 and May 25, 2023. In May 2023, 89.4 percent of insurance policies sold through Squaremouth.com were for international destinations, the most of any month this year. Squaremouth also reports the cost of international travel continues to rise, increasing the financial impact should a trip be affected by passport delays.
Most trip cancelation policies won’t cover travelers who are forced to cancel a trip if their passport arrived in time; however, travel insurance coverage can be available for those booking trips now and those concerned with the ongoing passport delays. To that end, many policies—almost half of those found on Squaremouth.com—offer an optional CFAR upgrade that can provide reimbursement for issues not covered under a standard plan, including any passport issue.
Back to passport processing: In 2023, travelers are planning their international trips less than 19 weeks in advance. The latest reports from the U.S. Department of State reveal travelers applying for a passport are having to wait roughly 13 weeks to receive their book in the mail. With wait times likely to increase with demand, travelers heading abroad should confirm their passports are valid for their travel dates and take immediate action if they are set to expire. Keep in mind that some destinations may require your passport to be valid for at least six months beyond the trip dates.
Squaremouth also found that:
- The percentage of international trips and the cost of travel has increased each month this year as we approach a busy summer travel season, with May having an average trip cost of roughly $6,750
- So far in 2023, just 5 percent of policies sold on Squaremouth have included the “Cancel for Any Reason” benefit
- CFAR premiums cost roughly 9 percent of total insured trip costs, which average $6,727 this year
For more information, visit www.squaremouth.com.
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