Travel insurance covers the financial mess when trips implode—medical emergencies abroad, sudden cancellations, lost baggage. About 65% of travelers cite peace of mind as their main reason for buying it, while 41% simply don’t want to lose money on a canceled trip. The average policy runs $311, or roughly $21 daily for a two-week vacation. Whether someone actually needs it depends on what they’re risking, where they’re going, and how much financial pain they can stomach if disaster strikes. The numbers tell a more complete story.
Design Highlights
- Travel insurance protects against financial losses from trip cancellations, medical emergencies abroad, and unexpected interruptions during your journey.
- Most travelers purchase insurance for peace of mind, with 64.5% citing this as their primary motivation for buying coverage.
- Medical evacuation and emergency care abroad are major concerns, with 80.8% of policies including emergency medical coverage for travelers.
- Higher-income travelers and frequent flyers are significantly more likely to purchase insurance, recognizing the value of protecting their investment.
- Cancel-for-any-reason policies offer maximum flexibility, though standard policies average $311 and protect against common risks like cancellations and medical expenses.
Travel insurance has become big business—like, $30.77 billion globally in 2025 big. The U.S. alone saw premiums hit $5.5 billion, a 46% jump from 2019. The market’s projected to grow at 16.8% annually through 2029. So clearly, a lot of people think they need it.
The travel insurance market hit $30.77 billion globally in 2025—a whole lot of people betting on protection.
But do they actually? The numbers tell different stories. On one hand, 76% of travelers worldwide bought coverage in 2025. On the other, 63% of American travelers skipped it entirely. Only 36.7% of U.S. travelers actually secured insurance for their 2025 trips. That’s a massive gap between global behavior and American attitudes.
The average policy cost $311 in 2025, or about $21 daily for a typical 15-day trip. Medical-only plans ran cheaper at $5 per day. But seniors over 70 got hammered with at least 37% higher premiums than younger travelers. Costs climb with trip length and coverage limits too.
Demographics matter here. Gen Z and Millennials made up 60% and 54% of buyers respectively, yet Millennials were simultaneously the least likely to insure trips—65% traveled bare.
Baby Boomers dominated the market, prioritizing extensive coverage. Income played a huge role: travelers making $200,000-plus insured at twice the rate of those earning under $50,000.
What people actually buy reveals their priorities. Trip cancellation coverage topped the list at 40% of policies. Emergency medical coverage appeared in 80.8% of plans. Cancel-for-any-reason policies surged 30-34% year-over-year. Pandemic-specific coverage showed up in 65% of policies. Adventure and extreme-sports coverage expanded to 9% of plans.
The most common claims involved unexpected trip cancellations, interruptions, and emergency medical expenses. That tracks with why 41% bought insurance to avoid losing money on canceled trips and 39% worried about pre-departure issues. Medical evacuation and primary care abroad ranked as top concerns.
Geography and travel frequency mattered too. Maryland led adoption at 49%, followed by California at 48.2%. Frequent flyers taking 3-10 trips yearly were more than twice as likely to buy coverage. They favored annual plans for cost and convenience. For business travelers specifically, coverage typically costs between 4% and 10% of total trip expenses depending on factors like destination and traveler age.
Attitudes shifted slightly: 43.8% of travelers reported being more likely to purchase insurance compared to two years ago, while 42.6% remained unchanged. Travel anxiety influenced 65% of individuals to at least consider insurance coverage, even among those who’d never purchased it before. Peace of mind remained the top reason for purchasing insurance, with 64.5% of buyers citing it as their primary motivation.
Still, 58.6% of Americans have purchased travel insurance at some point. They’ve at least considered it. Whether anyone actually needs it depends entirely on what they can afford to lose.
Frequently Asked Questions
What Types of Trips Benefit Most From Travel Insurance Coverage?
International trips benefit most—especially when domestic insurance won’t cover squat abroad.
Expensive, nonrefundable bookings? Yeah, those need protection.
Travelers over 65 or with preexisting conditions should seriously consider it.
Adventure travel to remote areas where medical evacuation could cost a fortune.
Basically, the pricier or riskier the trip, the more sense coverage makes.
Some countries literally won’t let visitors in without proof of insurance.
That’s not a suggestion—it’s mandatory.
Can I Purchase Travel Insurance After Booking My Trip?
Yes, travel insurance can be purchased after booking—even up to 24 hours before departure. Most providers allow it.
Problem is, waiting means losing out on valuable benefits. Cancel For Any Reason coverage? Gone if not bought within 14–21 days of the initial deposit. Same with pre-existing medical condition coverage.
Basic trip cancellation still works, but the good stuff requires early action. Late buyers get fewer options, potentially higher premiums, and less protection overall.
Does My Credit Card Provide Adequate Travel Insurance Protection?
Credit card travel insurance usually falls short.
Sure, premium cards like Chase Sapphire Reserve or Amex Platinum offer decent trip cancellation limits—$5,000 to $10,000 per person—but they’re picky about covered reasons.
Medical coverage? Laughable. Most cards ignore it entirely, while standalone plans actually cover emergencies.
Baggage limits cap around $3,000.
The kicker: coverage only works if the card paid for everything.
Bottom line—it’s something, but probably not enough for serious trips.
How Much Does Typical Travel Insurance Cost per Trip?
Travel insurance typically runs 4% to 11% of trip cost.
For a $5,000 vacation, expect around $204. A $7,000 trip? About $280.
Basic plans average $125, extensive around $162.
International trips cost roughly $25 daily—so a week abroad runs $158, two weeks hits $298.
Domestic coverage is cheaper, ranging $84 to $397 depending on length.
Add fancy perks like “cancel for any reason” and watch costs nearly double.
Age matters too—seniors pay considerably more than younger travelers.
What Documentation Is Required When Filing a Travel Insurance Claim?
Travel insurance claims require a mountain of paperwork.
Claimants need receipts for everything—flights, hotels, rentals. Cancellation notices from airlines prove trip interruptions.
Medical claims demand bills, doctor’s statements, hospital records. Got robbed? Police reports and proof of ownership are essential.
Delayed flight? Official delay notices and receipts for extra expenses.
The insurer’s claim form must be completed and signed. Credit card statements, bank records, invoices—basically every scrap of financial proof related to the trip. Documentation is king.
