With US travellers spending US$5.56 billion on travel insurance in 2024, it’s clear that travel protection has moved from a niche add-on to a mainstream necessity. This figure, drawn from the US Travel Insurance Association’s (USTIA) newly released 2022–2024 Market Study, reflects a 46% increase from pre-pandemic 2019 and signals a new baseline of strength and stability in the US market. But what sets the US travel insurance landscape apart from the global picture, and how are traveller preferences evolving post-pandemic?

While full Market Study results are available exclusively to USTIA members, the latest data offers several public takeaways about consumer behaviour, distribution trends and the long-term trajectory of travel protection in the United States.

A preference for per-trip protection

One of the most distinctive differences between the US and global travel insurance markets is American travellers’ strong preference for per-trip plans over annual policies. In many international markets, annual travel insurance is more common, particularly in countries where travel is frequent, cross-border movement is easier, or national healthcare systems reduce the need for standalone medical coverage abroad.

In contrast, US consumers largely continue to purchase coverage on a per-trip basis, reflecting the more episodic nature of long-distance travel and greater variability in trip cost, duration, and destination. This trend also aligns with the US healthcare system, where domestic insurance coverage is typically limited outside national borders, making it more important to match travel protection to the specific risks of each journey.

According to the latest study, trip cancellation and interruption packages remain the dominant product category in the US, accounting for approximately 94.7% of total consumer spend in 2024. These plans offer a broad range of benefits and are commonly purchased when a trip is booked, especially for high-value vacations, cruises, tours, or international excursions.

A digital shift in distribution

While the US market has long relied on travel agencies, cruise lines, and tour operators to drive travel insurance purchases, consumer habits are clearly shifting. Between 2022 and 2024, direct-to-consumer (DTC) platforms grew by 46.6%, and aggregator websites saw a 49.4% increase. This surge reflects a lasting shift in consumer preferences and underscores the expanding role of digital channels in how travellers research, compare, and purchase coverage.

At the same time, traditional distribution channels remain strong. Travel agents drove nearly $763 million in travel insurance sales in 2024, a 22.8% increase over 2022. Cruise and tour operators also saw a 42.9% jump over the same period, underscoring their continued importance in guiding travellers towards protection at the point of sale.

US consumers largely continue to purchase coverage on a per-trip basis, reflecting the ‎more episodic nature of long-distance travel

The result is a more diversified, multichannel marketplace – one where education, comparison, and convenience are increasingly important to consumers.

A market with momentum

While the pandemic brought travel to a standstill in 2020, it also spotlighted the importance of being prepared for the unexpected. Since then, US travellers have increasingly prioritised financial protection, emergency medical benefits, and round-the-clock assistance as part of their travel plans.

The numbers tell a compelling story: more than 86.9 million Americans were covered by over 54.8 million plans in 2024. Total trip value protected climbed to $68.04 billion, up from $49 billion in 2019. In 2024, the average protected trip value per plan was approximately $1,240, up from $1,125 in 2022. These figures point to growing consumer awareness and a higher overall investment in travel protection.

This growth also reflects an expanding industry footprint. Since 2002, US consumer spend on travel protection has increased nearly sevenfold from $810 million to $5.56 billion. While demand temporarily dipped during the pandemic, the current trajectory indicates long-term confidence and resilience.

Global comparisons: what sets the US apart

In addition to plan structure and purchase patterns, the US travel insurance market differs from many global counterparts in terms of regulation, consumer expectations, and coverage priorities.

For example, US travellers often prioritise trip cancellation and interruption benefits over medical coverage, a reflection of high domestic healthcare costs and the fact that many US health insurance plans provide limited or no coverage abroad. In 2024, trip cancellation and interruption coverage accounted for nearly 95% of total consumer spend across all product types. In contrast, travellers from countries with national healthcare systems may place greater emphasis on emergency medical benefits, as trip cancellation typically poses less financial risk and medical coverage while abroad is less certain.

Traditional distribution channels remain strong. Travel agents drove nearly $763 million ‎in travel insurance sales in 2024‎

Regulatory frameworks also vary widely. USTIA continues to advocate for uniform adoption of the National Conference of Insurance Legislators (NCOIL)/National Association of Insurance Commissioners (NAIC) Travel Insurance Model Act across US states to support consistency and consumer clarity, an effort that has now been adopted in 40 states as of mid-2025. This contrasts with many other regions that regulate travel insurance at the national or supranational level.

What’s ahead

As the global travel insurance sector continues to evolve, the US market offers a unique case study in post-pandemic consumer behaviour, regulatory advancement, and industry innovation. The latest USTIA Market Study reveals both continuity and change – consistent growth, expanding digital access, and a sharpened understanding of risk.

For those serving travellers in and out of the United States, understanding these nuances is critical. Whether through customised product offerings, educational outreach, or cross-border partnerships, aligning with US consumer expectations can unlock both protection for the traveller and opportunity for the industry.