25 Travel Insurance Statistics Every Traveler Should Know
What Americans spend on travel insurance, what it costs as a share of a trip, record travel volumes, 2025 flight delays, cancellations, and lost bags, and medical evacuation costs abroad, in 25 cited statistics.
Americans are traveling in record numbers, and more of them are paying to protect the trip. Travel insurance reimburses prepaid costs when a trip is canceled or cut short, covers delays and lost bags, and pays for emergency medical care and evacuation abroad, costs a domestic health plan may not cover. This report gathers 25 cited statistics on what travelers spend on coverage, what it costs as a share of a trip, how often flights and bags go wrong, and how expensive a medical emergency overseas can be. Every figure comes from a regulator, a federal agency, or a travel or insurance industry body, never a policy seller, and each states the year it describes.
Key Takeaways
- Spending is at a high - U.S. travelers spent $5.56 billion on travel insurance in 2024, 46% more than in 2019.
- Coverage is mainstream - 86.97 million people were protected by travel insurance plans in 2024.
- It costs a small share of the trip - travel insurance generally costs 4% to 8% of the total trip cost, according to the U.S. Travel Insurance Association.
- Americans travel abroad in record numbers - U.S. outbound travelers reached a record 107.7 million in 2024.
- Flights go wrong often - only 76.4% of flights on major U.S. airlines arrived on time in 2025, and 1.53% were canceled.
- A medical evacuation can be ruinous - an air evacuation costs from $25,000 to over $250,000, depending on where it starts.
How big the U.S. travel insurance market is
1. Americans spent $5.56 billion on travel insurance in 2024
U.S. travelers spent $5.56 billion on travel insurance in 2024, according to the U.S. Travel Insurance Association’s 2022 to 2024 Travel Protection Market Study, released in June 2025. The study was conducted by Willis Towers Watson and covers insurers representing more than 90% of the U.S. market, so the figures reflect nearly the whole industry. The association describes the 2024 total as a stabilized, post-pandemic baseline rather than a one-year spike.
2. Spending is up 46% since 2019 and nearly sevenfold since 2002
The long-term growth is steep. The 2024 total was 46% higher than the $3.81 billion spent in 2019, and it has grown from just $810 million in 2002, despite a sharp dip in 2020 during the pandemic. The association’s president said the data suggests travelers are prioritizing protection as an essential part of trip planning. For a typical buyer, that means coverage is now a routine line item, not an afterthought.
3. 86.97 million people were covered in 2024
Travel insurance is no longer a niche purchase. In 2024, 86.97 million people were protected by 54.87 million plans sold by the association’s members. The gap between the two numbers suggests many plans cover more than one traveler, such as a family on the same itinerary. By our calculation, spending divided by plans works out to about $101 per plan in 2024, though prices vary widely with trip cost, age, and destination.
4. Travelers insured $68 billion of trip costs
The value at stake is large. The total trip value protected by travel insurance reached $68.04 billion in 2024, up from $49 billion in 2019. Trip value is the prepaid, often nonrefundable money a traveler stands to lose if they cannot go, from airfare and cruise fares to tours and hotel deposits. By our calculation, the $5.56 billion travelers spent on coverage equals about 8% of the trip value it protected, which lines up with the published cost ranges below.
5. Trip cancellation packages are 94.7% of spending
Most buyers are protecting the trip itself, not just their health. Packages that include trip cancellation and interruption accounted for about 94.7% of consumer spending on travel insurance in 2024. These comprehensive plans typically bundle cancellation with medical, evacuation, delay, and baggage benefits. Standalone medical, evacuation, and other products make up the small remainder of the market.
- Trip cancellation and interruption packages 95%
- All other travel protection products 5%
6. Direct and online sales grew fastest
How people buy coverage is shifting. Between 2022 and 2024, direct-to-consumer sales grew 46.6%, while internet aggregators grew 49.4% and cruise and tour operators grew 42.9%. Online travel agencies and airlines remained the leading channel overall. Traditional travel agents still grew 22.8% to $762.8 million, a reminder that many travelers buy coverage at the moment of booking, wherever that booking happens.
What travel insurance costs
7. Coverage generally costs 4% to 8% of the trip
The U.S. Travel Insurance Association says travel insurance generally costs 4% to 8% of the total trip cost. The price is based mainly on the length of the trip, the destination, and the age of the traveler. On a $5,000 vacation, that range works out to roughly $200 to $400. Because the premium scales with the insured trip cost, insuring only the nonrefundable portion of a trip is one simple way to keep the price down.
8. Regulators put the typical range at 5% to 10%
State insurance regulators use a slightly wider estimate. The NAIC says travel insurance policies usually cost 5% to 10% of the total trip price, in guidance last updated in April 2026. Neither range is a quote, since the price depends on the trip’s length, the destination, and the traveler’s age. Either way, standard coverage costs a small fraction of what the trip itself does.
9. Cancel-for-any-reason coverage can push the cost to 15%
Comprehensive plans that cancel only for a list of covered reasons can cost up to 8% of the trip, according to the CDC’s 2026 Yellow Book, while plans with cancel-for-any-reason coverage can cost up to 15%. Standard plans pay only when the reason for canceling is on the policy’s list of covered reasons. Cancel-for-any-reason coverage removes that list, and at the top of each range the price nearly doubles to match.
10. Cancel-for-any-reason refunds only 50% to 75%
Even the most flexible coverage does not repay everything. The NAIC says cancel-for-any-reason coverage adds close to 50% to the cost of a travel insurance policy and typically refunds 50% to 75% of the total trip price. Travelers weighing the upgrade should compare that partial refund with the trip’s own cancellation terms. For a trip with generous airline or hotel refund policies, the upgrade may add little value.
How many Americans are traveling
11. A record 107.7 million Americans traveled abroad in 2024
U.S. outbound travel hit a record 107.7 million travelers in 2024, up 9.2% from 2023 and 8.0% above the previous high of 99.7 million set in 2019, according to the National Travel and Tourism Office. More international trips mean more exposure to the risks travel insurance covers, from missed connections to medical care in a country where U.S. health coverage may not apply. The outbound market is not just back, it is bigger than ever.
12. Mexico is the top destination, but overseas trips lead overall
Where Americans went in 2024, according to the National Travel and Tourism Office:
- Overseas countries: 53.8 million visits, 20% above the 2019 level
- Mexico: 39.9 million visits, the largest single market
- Canada: 14.1 million visits
Overseas trips put travelers farther from familiar doctors, hospitals, and health coverage, which is where medical and evacuation benefits matter most.
- Overseas 50%
- Mexico 37%
- Canada 13%
13. The average overseas traveler spent $1,907 and planned 109 days ahead
The typical overseas traveler is making a substantial investment. In 2024, the average U.S. outbound overseas air traveler stayed 15.3 nights and spent $1,907 outside the country, and started planning 109 days before departure. Vacation was the main purpose for 61% of these travelers, followed by visiting friends and relatives at 27%. A planning window of more than three months leaves plenty of time for an illness, a job change, or a family emergency to derail prepaid plans.
14. Outbound trips kept growing in 2026
The growth has not stalled. U.S. citizens made 9,308,594 international departures in March 2026, an increase of 5.2% from March 2025 and 111.2% of the pre-pandemic March 2019 level. Mexico alone accounted for 40.1% of the month’s departures. Early 2026 numbers point to continued growth after the 2024 record.
15. TSA screened 3.13 million people in a single day
Airports are operating near record volumes. TSA’s checkpoint data shows 3,134,613 travelers screened on November 30, 2025, the Sunday after Thanksgiving and the highest daily total in its 2024 to 2026 data. Separately, the Bureau of Transportation Statistics reported that U.S. airlines carried 87.5 million passengers in June 2026 alone, 12 million of them on international flights. Crowded peak days leave little slack to rebook passengers when flights are canceled.
16. Americans will spend an estimated $1.37 trillion on travel in 2026
Travel is a massive part of the U.S. economy. The U.S. Travel Association forecasts total U.S. travel spending will reach $1.37 trillion in 2026, with domestic travel accounting for 87% of the total. Against that backdrop, the $5.56 billion spent on travel insurance in 2024 is small. Travelers who skip coverage carry the cancellation, delay, and medical risk on their own.
Flight delays, cancellations, and lost bags
17. Only 76.4% of flights arrived on time in 2025
Delays are routine. Major U.S. airlines and their branded codeshare partners reported an on-time arrival rate of 76.42% in 2025, down from 78.10% in 2024, across more than 7.7 million scheduled flights, according to the Department of Transportation’s Air Travel Consumer Report. That means nearly one scheduled flight in four did not arrive within 15 minutes of its scheduled time. Trip delay benefits exist for exactly this situation.
18. Airlines canceled 118,168 flights in 2025
Cancellations rose last year. The reporting airlines canceled 118,168 flights in 2025, or 1.53% of those scheduled, up from 102,908 flights and 1.36% in 2024. Cancellation rates by marketing carrier ranged from 0.47% at Allegiant Air to 2.36% for the American Airlines network. A canceled outbound flight can unravel nonrefundable hotel nights, tours, and cruise departures downstream, which is where trip interruption coverage pays.
19. On-time performance varies by more than 11 points between airlines
The airline you choose affects your odds. In 2025, the reporting carriers’ on-time arrival rates were:
- Hawaiian Airlines: 81.95%
- Delta Air Lines network: 79.26%
- Southwest Airlines: 77.76%
- United Airlines network: 76.87%
- American Airlines network: 73.52%
- Frontier Airlines: 70.68%
Even the best-performing airline missed its schedule on almost one flight in five, so delay coverage is useful whichever carrier you fly.
20. Airlines mishandled 2.43 million bags in 2025
Lost and damaged luggage is common enough to plan for. U.S. airlines mishandled 2,431,940 bags out of 471 million checked in 2025, a rate of 0.52 per 100 bags enplaned. That was an improvement from 0.55 per 100 and 2.72 million mishandled bags in 2024. Baggage benefits in a travel policy can help pay for essentials while a bag is delayed and for items that never arrive.
21. Mishandled baggage rates differ eightfold between airlines
Some carriers handle bags far better than others. In 2025, Allegiant Air mishandled just 0.09 bags per 100, while the United Airlines network mishandled 0.72 per 100 and the American Airlines network 0.66. JetBlue (0.31) and Southwest (0.38) were also well below the industry rate of 0.52. Your own odds depend heavily on which airline handles your bag.
22. A 2024 federal rule requires refunds after 3-hour domestic changes
Not every disruption needs an insurance claim. Under the Department of Transportation’s final rule announced in April 2024, airlines must provide automatic cash refunds when they cancel or significantly change a flight and the passenger declines alternatives, with a significant change defined as more than 3 hours for domestic flights and 6 hours for international ones. Passengers who file a mishandled baggage report also get their checked bag fee back if the bag is not delivered within 12 hours of a domestic flight’s arrival. Airline refunds cover the ticket, while travel insurance covers the hotels, tours, and other prepaid costs the airline does not.
23. Five hurricanes made U.S. landfall in 2024
Weather can derail a trip at any point. The 2024 Atlantic season produced 11 hurricanes, five of which made landfall in the United States, according to Triple-I data drawn from NOAA. A storm can close airports, ports, and resorts for days, and the hurricane season overlaps with peak summer and fall travel. Read how a policy treats weather before you buy, since cancellation benefits apply only to the covered reasons the policy lists.
Medical costs abroad
24. A medical evacuation costs $25,000 to more than $250,000
A medical evacuation can be the most expensive event on any trip. The CDC’s 2026 Yellow Book puts the cost of a medevac at $25,000 for transport within North America to more than $250,000 from distant and remote locations, with costs rising further when the patient is critically ill. The CDC notes that medevac insurance by itself is relatively inexpensive and can save travelers thousands. Few households could pay a six-figure air ambulance bill out of pocket.
25. Medicare generally pays nothing for care outside the U.S.
Travelers on Medicare face a particular gap. Except in limited circumstances, Medicare does not cover medical costs incurred outside the United States, and it does not cover medical evacuation, according to the CDC. Some Medigap plans cover emergency care that begins in the first 60 days of a trip, paying 80% after a $250 deductible, with a $50,000 lifetime maximum. For many travelers on Medicare, a travel medical policy is the main source of coverage abroad.
How to buy travel insurance that fits your trip
The numbers point to a short checklist before you buy:
- Price it against the trip. Expect to pay roughly 4% to 8% of the insured trip cost for standard coverage, and insure only the prepaid, nonrefundable portion.
- Buy early. With the average overseas traveler planning 109 days ahead, buying coverage soon after booking protects you against covered events that come up during that window.
- Prioritize medical and evacuation limits abroad. A medevac can exceed $250,000, and Medicare will not pay it.
- Know what you already have. Check whether your homeowners or renters policy already covers belongings stolen while you travel before paying for extra baggage coverage.
- Compare plans and providers. Benefits and exclusions vary, so start with our carrier comparison and then compare quotes for your itinerary.
- Check our sourcing. Our methodology page explains how we verify every figure.
Frequently Asked Questions
How much does travel insurance cost?
Travel insurance generally costs 4% to 8% of the total trip cost, according to the U.S. Travel Insurance Association, and the NAIC puts the usual range at 5% to 10%. The price depends mainly on trip cost, trip length, destination, and the traveler’s age. Adding cancel-for-any-reason coverage can push the cost up to 15% of the trip.
How many Americans buy travel insurance?
In 2024, 86.97 million people were protected by 54.87 million travel insurance plans, and U.S. travelers spent $5.56 billion on coverage. That spending was 46% higher than in 2019, according to the U.S. Travel Insurance Association.
Is cancel-for-any-reason coverage worth it?
It depends on the trip. The NAIC says cancel-for-any-reason coverage adds close to 50% to the policy price and typically refunds only 50% to 75% of the trip cost. It makes the most sense for expensive, nonrefundable trips where you are uncertain you can go for reasons a standard policy would not cover.
Does my health insurance cover me abroad?
Often not fully. Medicare generally does not cover medical care outside the United States or medical evacuation, and private plans vary in what they pay overseas. Because an air evacuation can cost from $25,000 to more than $250,000, a travel medical or evacuation policy fills the most expensive gap.
How often are flights delayed or canceled?
In 2025, only 76.42% of flights on major U.S. airlines arrived on time, and 1.53% were canceled, both worse than in 2024. Airlines also mishandled 2.43 million checked bags. Travel insurance delay, interruption, and baggage benefits are designed to cover the extra costs these disruptions create. Compare plans on our travel insurance page.