The U.S. travel insurance market is booming, with Americans set to spend a record US$5.56 billion on travel protection in 2024. This marks a 46% increase from pre-pandemic 2019 levels, highlighting the growing importance of travel insurance as a mainstream necessity rather than a niche add-on.
This data, from the U.S. Travel Insurance Association’s (USTIA) newly released 2022–2024 Market Study, signals both strength and stability in the market. But how are traveler preferences evolving in the U.S. compared to global trends, particularly after the pandemic?
Key Insights from the USTIA Study
While the full results of the Market Study are available only to USTIA members, several public takeaways shed light on shifting consumer behaviors, distribution trends, and the long-term trajectory of travel protection in the U.S.
One of the most notable differences between the U.S. and global travel insurance markets is Americans’ preference for per-trip insurance plans rather than annual policies. In many other countries, annual travel insurance is the norm, particularly in regions where frequent cross-border travel and national healthcare systems reduce the need for separate medical coverage abroad.
In contrast, U.S. consumers continue to favor per-trip coverage, which aligns with the more episodic nature of long-distance travel in the U.S. This approach also reflects the limitations of domestic insurance policies, which often offer little to no coverage outside the country. As such, Americans are more likely to purchase insurance that’s tailored to the specific risks and costs of each journey.
Trip Cancellation Dominates the Market
According to the study, trip cancellation and interruption packages remain the most popular choice among U.S. travelers, accounting for about 94.7% of total consumer spending on travel insurance in 2024. These plans, often purchased at the time of booking, offer broad coverage and are especially favored for high-value vacations, cruises, international tours, and other expensive trips.
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