Although traveling is among the most favorite activities for many people, the decision to take out travel insurance is often left on the back burner.From a psychological point of view, this behavior has its own logic.Humans naturally tend to underestimate the likelihood of unpleasant events, especially when they are in a positive emotional state.The psychology of risk plays a key role in people's decisions about purchasing travel insurance.Many people avoid buying such insurance due to a combination of social and psychological factors that influence their behavior and perception of risk.
Psychological mechanisms
One of the main psychological mechanisms that lead to travel insurance avoidance is optimism.The Illusion of Control - "I'm careful, I'll manage" or in other words the phenomenon of the "Optimistic Disposition" –"It won't happen to me" is the leading reason.People have a built-in tendency to believe that bad things happen to others, not to themselves.People often believe that they personally won't get into trouble, despite statistics to the contrary.This cognitive bias, known as the ``illusion of infallibility,'' causes people to underestimate the likelihood of accidents or illness while traveling.Added to it is the effect of the recent past - "Last year there was no problem, so there won't be any now."Since the probability of getting sick or losing your luggage is low, the brain underestimates the risk.Studies show that 68% of Bulgarians do not buy travel insurance, even though 1 in 5 trips ends in a problem - from a delayed flight to a medical incident.
Procrastination effect
Insurance, from this perspective, pays for something that won't happen.It is combined withthe effect of procrastination, which states that people avoid decisions that do not bring an immediate reward.Buying insurance is an expense with no visible benefit in the here and now, and its potential value only becomes apparent ...
Although traveling is among the most favorite activities for many people, the decision to take out travel insurance is often left on the back burner.From a psychological point of view, this behavior has its own logic.Humans naturally tend to underestimate the likelihood of unpleasant events, especially when they are in a positive emotional state.The psychology of risk plays a key role in people's decisions about purchasing travel insurance.Many people avoid buying such insurance due to a combination of social and psychological factors that influence their behavior and perception of risk.
Psychological mechanisms
One of the main psychological mechanisms that lead to travel insurance avoidance is optimism.The Illusion of Control - "I'm careful, I'll manage" or in other words the phenomenon of the "Optimistic Disposition" –"It won't happen to me" is the leading reason.People have a built-in tendency to believe that bad things happen to others, not to themselves.People often believe that they personally won't get into trouble, despite statistics to the contrary.This cognitive bias, known as the ``illusion of infallibility,'' causes people to underestimate the likelihood of accidents or illness while traveling.Added to it is the effect of the recent past - "Last year there was no problem, so there won't be any now."Since the probability of getting sick or losing your luggage is low, the brain underestimates the risk.Studies show that 68% of Bulgarians do not buy travel insurance, even though 1 in 5 trips ends in a problem - from a delayed flight to a medical incident.
Procrastination effect
Insurance, from this perspective, pays for something that won't happen.It is combined withthe effect of procrastination, which states that people avoid decisions that do not bring an immediate reward.Buying insurance is an expense with no visible benefit in the here and now, and its potential value only becomes apparent if something goes wrong.This is the perceived inefficiency factor.People often think that money for insurance is wasted if they don't use it.This is a classic problem with the notion of value – you pay something now to avoid a hypothetical loss in the future.When risk is felt as abstract and distant, costs seem certain and undeserved.In addition, the complexity of policies and exclusions creates a sense of uncertainty - "what if it doesn't cover what happens to me?".
More psychological factors
The other psychological factor is related to the perception of value.The average price of insurance for a seven-day holiday is between BGN 20-50 - less than a dinner in a resort restaurant.The traveler prefers to spend that money on something tangible – another dinner or a souvenir (where instant gratification is obtained).satisfaction.Giving money for a possible situation that will probably never arise seems perfectly justified.This is a classic example of the tendency to separate our money into different mental categories.
Is insurance a waste of money?
Psychologically, people are more sensitive to losses than to gains.Paying an insurance premium is perceived as a certain, immediate loss of money, while compensation is only a potential, future benefit.This „loss“appears to be more significant than the hypothetical risk.
Social context also plays a role.In cultures where the state provides robust health care, the need for additional medical insurance abroad may be underestimated.The lack of first-hand stories of negative cases among friends and family reinforces the perception that the risk is minimal.When one's friends and family don't buy travel insurance, it's often their example without thinking about the potential risks.Groupthink and conformity can override individual rationality.There is a built-in social consensus that insurance is 'for the overcautious' or 'for adults.''
Global risks
However, trends are beginning to change.With the growing awareness of global risks, such as pandemics and natural disasters, people are becoming more inclined to look for ways to protect themselves.The COVID-19 pandemic has shown how quickly and unpredictably circumstances can change, causing many people to rethink their approach to insurance.The media and public discourse began to pay attention to these scenarios, making them part of the general travel culture.Research from 2024 shows a 340% increase in the purchase of travel insurance compared to 2019. The most significant change is in the young demographic (25-35 years old), where take-up rose from 18% to 52%.In addition, after the first incident - 74% of people who experienced a flight delay or medical incident buy insurance for the next trip.This is the effect of trauma – emotion overriding logic.When someone in the group is "saved" by insurance (eg 800 euros refunded for a canceled flight), the others accept it as the norm.
Technology development
On the other hand, the development of technology and easy access to information online make the process of buying insurance easier.Online platforms and mobile applications offer convenience and transparency, making insurance more accessible and attractive to consumers.Technologies allow the purchase to be made in less than 3 minutes, and without filling out forms.And micro-insurance - for BGN 5-10 for a weekend in Greece - makes the risk "tolerable" and overcomes the price barrier.
Including cancellation and medical coverage is often the deciding factor in whether the trip gets booked at all.The psychological motivation has shifted from avoiding expense to avoiding financial disaster, turning insurance from a luxury into a must-have part of planning.
More information abouttravel insurance on the Insurance.bg website!
Frequently asked questions
Why do people often underestimate the need for travel insurance?
Answer: People tend to believe that unpleasant events happen to "others" but not to them.This is a psychological mechanism called an optimistic disposition.When a person is in a positive mood before a trip, the perception of risk decreases.This makes insurance seem redundant, despite the real dangers.
What is the 'illusion of control' in travel?
Answer: The illusion of control is the belief that one can completely control everything that happens to them.Many travelers believe that if they are careful, there is no way to get into trouble.This causes people to underestimate external factors such as illness, canceled flights or accidents.However, reality shows that not all circumstances depend on personal behavior.
Why is the cost of insurance perceived as a "loss"?
Answer: Insurance is seen as a safe expense, not an investment in peace of mind.Since the benefit only comes with a problem, people feel that money is "wasted" if nothing happens.Psychologically, losses are experienced more strongly than future gains.This leads to avoidance of the purchase even at a low price.
How does the social environment influence the insurance decision?
Answer: If friends and family don't buy insurance, one often does the same.This is an effect of social imitation.Young people, in particular, avoid appearing overly cautious in front of their peers.Thus, the choice is determined not by the risk, but by the social norm.
How has the pandemic changed attitudes towards travel insurance?
Answer: COVID-19 has made it clear how unpredictable external circumstances can be.Thousands of people experienced canceled flights, quarantines and unexpected medical expenses.This has led to a sharp rise in interest in travel insurance.Insurance is no longer perceived as a luxury, but as a necessity.
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Although traveling is among the most favorite activities for many people, the decision to take out travel insurance is often left on the back burner.From a psychological point of view, this behavior has its own logic.Humans naturally tend to underestimate the likelihood of unpleasant events, especially when they are in a positive emotional state.The psychology of risk plays a key role in people's decisions about purchasing travel insurance.Many people avoid buying such insurance due to a combination of social and psychological factors that influence their behavior and perception of risk.
Psychological mechanisms
One of the main psychological mechanisms that lead to travel insurance avoidance is optimism.The Illusion of Control - "I'm careful, I'll manage" or in other words the phenomenon of the "Optimistic Disposition" –"It won't happen to me" is the leading reason.People have a built-in tendency to believe that bad things happen to others, not to themselves.People often believe that they personally won't get into trouble, despite statistics to the contrary.This cognitive bias, known as the ``illusion of infallibility,'' causes people to underestimate the likelihood of accidents or illness while traveling.Added to it is the effect of the recent past - "Last year there was no problem, so there won't be any now."Since the probability of getting sick or losing your luggage is low, the brain underestimates the risk.Studies show that 68% of Bulgarians do not buy travel insurance, even though 1 in 5 trips ends in a problem - from a delayed flight to a medical incident.
Procrastination effect
Insurance, from this perspective, pays for something that won't happen.It is combined withthe effect of procrastination, which states that people avoid decisions that do not bring an immediate reward.Buying insurance is an expense with no visible benefit in the here and now, and its potential value only becomes apparent ...
Although traveling is among the most favorite activities for many people, the decision to take out travel insurance is often left on the back burner.From a psychological point of view, this behavior has its own logic.Humans naturally tend to underestimate the likelihood of unpleasant events, especially when they are in a positive emotional state.The psychology of risk plays a key role in people's decisions about purchasing travel insurance.Many people avoid buying such insurance due to a combination of social and psychological factors that influence their behavior and perception of risk.
Psychological mechanisms
One of the main psychological mechanisms that lead to travel insurance avoidance is optimism.The Illusion of Control - "I'm careful, I'll manage" or in other words the phenomenon of the "Optimistic Disposition" –"It won't happen to me" is the leading reason.People have a built-in tendency to believe that bad things happen to others, not to themselves.People often believe that they personally won't get into trouble, despite statistics to the contrary.This cognitive bias, known as the ``illusion of infallibility,'' causes people to underestimate the likelihood of accidents or illness while traveling.Added to it is the effect of the recent past - "Last year there was no problem, so there won't be any now."Since the probability of getting sick or losing your luggage is low, the brain underestimates the risk.Studies show that 68% of Bulgarians do not buy travel insurance, even though 1 in 5 trips ends in a problem - from a delayed flight to a medical incident.
Procrastination effect
Insurance, from this perspective, pays for something that won't happen.It is combined withthe effect of procrastination, which states that people avoid decisions that do not bring an immediate reward.Buying insurance is an expense with no visible benefit in the here and now, and its potential value only becomes apparent if something goes wrong.This is the perceived inefficiency factor.People often think that money for insurance is wasted if they don't use it.This is a classic problem with the notion of value – you pay something now to avoid a hypothetical loss in the future.When risk is felt as abstract and distant, costs seem certain and undeserved.In addition, the complexity of policies and exclusions creates a sense of uncertainty - "what if it doesn't cover what happens to me?".
More psychological factors
The other psychological factor is related to the perception of value.The average price of insurance for a seven-day holiday is between BGN 20-50 - less than a dinner in a resort restaurant.The traveler prefers to spend that money on something tangible – another dinner or a souvenir (where instant gratification is obtained).satisfaction.Giving money for a possible situation that will probably never arise seems perfectly justified.This is a classic example of the tendency to separate our money into different mental categories.
Is insurance a waste of money?
Psychologically, people are more sensitive to losses than to gains.Paying an insurance premium is perceived as a certain, immediate loss of money, while compensation is only a potential, future benefit.This „loss“appears to be more significant than the hypothetical risk.
Social context also plays a role.In cultures where the state provides robust health care, the need for additional medical insurance abroad may be underestimated.The lack of first-hand stories of negative cases among friends and family reinforces the perception that the risk is minimal.When one's friends and family don't buy travel insurance, it's often their example without thinking about the potential risks.Groupthink and conformity can override individual rationality.There is a built-in social consensus that insurance is 'for the overcautious' or 'for adults.''
Global risks
However, trends are beginning to change.With the growing awareness of global risks, such as pandemics and natural disasters, people are becoming more inclined to look for ways to protect themselves.The COVID-19 pandemic has shown how quickly and unpredictably circumstances can change, causing many people to rethink their approach to insurance.The media and public discourse began to pay attention to these scenarios, making them part of the general travel culture.Research from 2024 shows a 340% increase in the purchase of travel insurance compared to 2019. The most significant change is in the young demographic (25-35 years old), where take-up rose from 18% to 52%.In addition, after the first incident - 74% of people who experienced a flight delay or medical incident buy insurance for the next trip.This is the effect of trauma – emotion overriding logic.When someone in the group is "saved" by insurance (eg 800 euros refunded for a canceled flight), the others accept it as the norm.
Technology development
On the other hand, the development of technology and easy access to information online make the process of buying insurance easier.Online platforms and mobile applications offer convenience and transparency, making insurance more accessible and attractive to consumers.Technologies allow the purchase to be made in less than 3 minutes, and without filling out forms.And micro-insurance - for BGN 5-10 for a weekend in Greece - makes the risk "tolerable" and overcomes the price barrier.
Including cancellation and medical coverage is often the deciding factor in whether the trip gets booked at all.The psychological motivation has shifted from avoiding expense to avoiding financial disaster, turning insurance from a luxury into a must-have part of planning.
More information abouttravel insurance on the Insurance.bg website!
Frequently asked questions
Why do people often underestimate the need for travel insurance?
Answer: People tend to believe that unpleasant events happen to "others" but not to them.This is a psychological mechanism called an optimistic disposition.When a person is in a positive mood before a trip, the perception of risk decreases.This makes insurance seem redundant, despite the real dangers.
What is the 'illusion of control' in travel?
Answer: The illusion of control is the belief that one can completely control everything that happens to them.Many travelers believe that if they are careful, there is no way to get into trouble.This causes people to underestimate external factors such as illness, canceled flights or accidents.However, reality shows that not all circumstances depend on personal behavior.
Why is the cost of insurance perceived as a "loss"?
Answer: Insurance is seen as a safe expense, not an investment in peace of mind.Since the benefit only comes with a problem, people feel that money is "wasted" if nothing happens.Psychologically, losses are experienced more strongly than future gains.This leads to avoidance of the purchase even at a low price.
How does the social environment influence the insurance decision?
Answer: If friends and family don't buy insurance, one often does the same.This is an effect of social imitation.Young people, in particular, avoid appearing overly cautious in front of their peers.Thus, the choice is determined not by the risk, but by the social norm.
How has the pandemic changed attitudes towards travel insurance?
Answer: COVID-19 has made it clear how unpredictable external circumstances can be.Thousands of people experienced canceled flights, quarantines and unexpected medical expenses.This has led to a sharp rise in interest in travel insurance.Insurance is no longer perceived as a luxury, but as a necessity.