US travelers are spending more on travel insurance than ever before, signaling a shift from niche add-ons to mainstream travel essentials. According to the US Travel Insurance Association (USTIA), Americans are expected to spend US$5.56 billion on travel insurance in 2024. This represents a 46% increase from pre-pandemic levels in 2019.
The newly released 2022–2024 Market Study by USTIA highlights evolving consumer preferences and key trends in the US market. While full results are available only to USTIA members, several public insights shed light on the growth and stability of travel protection in the country.
One notable difference between the US and global travel insurance markets is the strong preference for per-trip plans among American travelers. In contrast, annual policies are more common in other countries, especially where frequent travel is easier or national healthcare systems reduce the need for international coverage.
US consumers typically buy coverage for individual trips. This approach reflects the episodic nature of long-distance travel and the variation in trip cost, duration, and destination. It also aligns with the US healthcare system, where domestic insurance coverage is often limited outside the country. Travelers therefore prefer plans tailored to the specific risks of each journey.
Trip cancellation and interruption packages remain the most popular products, accounting for approximately 94.7% of total consumer spend in 2024. These plans are especially popular for high-value vacations, cruises, tours, or international trips, often purchased at the time of booking to provide financial protection and peace of mind.
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