29 Travel Insurance Statistics for 2025: Key Insights on Protection, Market Behavior, and Industry Trends

Travel insurance protects travelers from financial losses due to unexpected events such as medical emergencies, trip cancellations, lost luggage, or travel delays. 

According to the U.S. Travel Insurance Association, American travelers spent $5.56 billion on travel insurance in 2024, a 46% increase from 2019. This rise reflects the growing importance of travel protection amid evolving travel safety trends in response to global disruptions.

Understanding travel insurance statistics empowers travelers to make smarter protection choices, helping them prioritize policies with the coverages most likely to be used, ensure they’re not underinsured, and select options that offer the best value for their specific travel needs.

Key travel insurance statistics

Travel insurance plays an important role in protecting trips and expenses. Here are some key stats to give you a clearer idea of its usage and average costs.

• In 2024, American travelers spent $5.56 billion on travel insurance, a 46% increase compared to 2019. (U.S. Travel Insurance Association)
• Nearly 6 out of 10 Americans have purchased travel insurance at least once. (Upgraded Points)
• Travel insurance typically costs between 4% and 6% of the total trip price, depending on factors like destination, traveler age, and trip duration. (Forbes)
• The most commonly insured travel expenses are flights (54.8%), followed by car rentals and hotel stays. (Upgraded Points)
• The vast majority of travel insurance policies—about 88%—are purchased for international travel. (Squaremouth)

Travel insurance facts

While travel insurance and health insurance both offer important protection, they cover different types of risks. Here are some key facts and stats to help you understand travel insurance better.

• Travel insurance coverage includes trip cancellation, medical emergencies, lost luggage, travel delays, and emergency evacuation.
• The average cost is about 4%-6% of the total trip price, varying by destination and trip length. (Forbes)
• Typical limitations exclude pre-existing conditions, certain adventure activities, and pandemics unless specifically covered.
• Common trip types include international travel, cruises, expensive vacations, or trips with multiple connections.
• Nearly 59% of Americans say they’ve bought travel insurance at least once in their life. (Upgraded Points)
• For a $2,000 trip, travel insurance typically costs around $112.60, though the price can vary depending on factors like destination, age, and coverage type. (NerdWallet)
• 88% of travel insurance plans are for international trips. (Squaremouth) 

Travel insurance industry trends

Key trends are shaping the travel insurance industry in 2025. These insights can help travelers handle common travel emergencies like a pro.

• The global travel insurance market was valued at $27.05 billion in 2024. (Grand View Research)
• By 2030, the market is projected to reach $63.87 billion. (Grand View Research)
• From 2025 to 2034, the market is expected to grow steadily, with a 18.4% annual growth rate. (Allied Market Research)

• Europe held the largest market share for travel insurance, with 35% in 2024. (Grand View Research)
• In 2024, single-trip travel insurance held the largest share of the market at 61% by insurance coverage. (Grand View Research)
• Canada is the fastest-growing regional market in North America and is projected to reach $2.1 billion by 2030. (Grand View Research)
• Annual multi-travel trip insurance is expected to grow signficantly from 2025 to 2030. (Grand View Research)

Travel insurance demographics

As traveler demographics evolve in 2025, the demand for specialized coverage like travel insurance for pre-existing conditions is growing. Staying informed about these changes helps you get protection tailored to your unique needs.

• Nearly two-thirds (65%) of millennials are traveling without coverage in 2025, making them the least likely to insure their trips. (Upgraded Points)
• Travelers earning $200K+ annually are nearly twice as likely to insure trips compared to those earning under $50K. (Upgraded Points)
• Flights are the most commonly insured travel expense (54.8%), followed by car rentals and hotel bookings. (Upgraded Points)
• 48% of travelers skip travel insurance because it’s too expensive. (Upgraded Points)
• 13.6% of travelers receive travel protection through credit cards or memberships. (Upgraded Points)
• Travelers aged 50 and older held the largest share of the travel insurance market size in 2024. (Allied Market Research)
• Gen Z travelers are more likely than millennials to purchase insurance for flights, hotels, and Airbnbs. (Upgraded Points)
• 54% of Americans would use travel insurance for flight protection. (Upgraded Points) 
• 62% of travelers purchase policies with trip cancellation protection. (Squaremouth)

Travel insurance claim statistics

In 2025, travel insurance claims showed clear shifts reflecting how travelers’ needs are changing. The most common travel insurance claims are for unexpected trip cancellations and interruptions, while emergency medical expenses remain a top concern, especially for longer or riskier trips.

Claims related to long distance medical transport may be becoming more common as travelers increasingly seek protection for serious medical situations abroad. These trends suggest the growing complexity of travel risks and highlight why having the right coverage is more important than ever.

• Nearly 1 in 5 U.S. travelers have lost money by skipping travel protection, and most say the experience made them more likely to buy it in the future. (Upgraded Points)
• 40% of paid claims in 2024 were related to trips that were cancelled or shortened. (Squaremouth)
• Last year, increased travel insurance purchases drove an 18% jump in paid claims and pushed average payouts up from $1,900 to $2,609. (Squaremouth)
• Emergency medical claims led the way in 2024, representing 27% of all paid claims and seeing a 14% increase in average payouts, from $1,456 to $1,654. (Squaremouth)
• Lost and delayed baggage claims made up 8% of paid claims in 2024, with average payouts remaining under $210. (Squaremouth)
• Trip cancellation claims accounted for 26% of paid claims last year, with average payouts around $1,456 and some claims exceeding $50,000. (Squaremouth)
• Travel delay claims represented 15% of paid claims in 2024, with average payouts rising to $370 and maximum claims reaching $2,655. (Squaremouth)

Take steps toward proactive travel protection

Understanding travel insurance statistics empowers you to make informed decisions about whether travel insurance is worth it for your trip or if alternative options might be a better fit. By recognizing key risks and traveler behaviors, you can confidently choose protection that meets your needs.

Unlike traditional travel insurance, Emergency Assistance Plus® (EA+®) is an emergency travel assistance program that offers yearly membership plans, making it a cost-effective and convenient option for frequent travelers. With plans designed to help in case of many emergencies, EA+ helps you take control of your travel protection and journey with confidence.

FAQ

What is the best yearly travel insurance option?

The best yearly travel insurance option offers broad coverage for multiple trips, including strong medical, trip cancellation, and baggage protection. Top providers in 2025 include:

• Allianz Travel
• Travel Guard
• Seven Corners

If you’re looking for the best travel insurance for seniors, be sure to compare plans that offer enhanced medical coverage and emergency support. 

For added peace of mind, you might also consider alternative travel protection options like EA+. Unlike traditional travel insurance, EA+ is a yearly membership plan that applies to all your trips, so you don’t need to purchase added protection for each journey. It provides services such as emergency medical transportation, assistance after hospitalization, and 24/7 global support. 

With EA+, you don’t have to pay upfront and wait for reimbursement. Because it provides real-time assistance, services included in your membership are arranged and paid for directly at the time of need. This makes EA+ a convenient and cost-effective option for frequent travelers who want reliable support across multiple trips.

Should I choose annual or single-trip insurance?

When comparing annual travel insurance vs. single trip, consider how often you travel each year. Choose single-trip insurance for occasional travel with coverage tailored to one journey, or go with annual insurance if you travel frequently and want year-round protection.

Annual plans are often more cost-effective and convenient for frequent travelers, saving time and money over multiple trips.

What percentage of people get travel insurance?

In 2024, 86.97 million people were protected by 54.87 million travel insurance plans from USTIA members, which include major U.S. providers such as Allianz, Travel Guard, and Generali.

Is $100,000 enough for travel insurance?

While $100,000 can be enough for basic medical protection, many travelers opt for higher limits to ensure comprehensive coverage in the event of serious medical emergencies, costly treatments abroad, or extended hospital stays.

Common coverage ranges for travel insurance include:

• Medical coverage: $100,000 (basic), $250,000 (recommended), $500,000+ (for higher-risk or international trips)
• Trip cancellation: $1,000 to $10,000+
• Baggage loss: $500 to $2,000

What other travel protection options are there besides insurance?  

Travel insurance isn’t the only way to protect your trip. Other strategies and services include:

• Booking refundable flights and accommodations
• Using credit cards with built-in travel protection benefits
• Obtaining a travel assistance membership (like EA+)
• Setting aside an emergency travel fund
• Registering with your embassy for safety alerts and support
• Keeping digital and physical copies of important documents

How profitable is travel insurance? 

Travel insurance is quite profitable for most insurers and agencies, often generating profit margins between 20% and 50%. This could be due to many policies going unused, or claims being lower than expected