Outlook for travel insurance in 2024

Key points

• As trip costs continue to rise in 2024, so will the price of travel insurance.
• People are planning trips further in advance and purchasing 2024 travel insurance earlier, making them eligible for perks like cancel for any reason (CFAR) coverage and a pre-existing conditions exclusion waiver.
• Emergency evacuation, medical coverage and trip interruption remain top concerns for travelers, increasing the search for comprehensive travel insurance plans with more robust coverage — even if it costs more.

The best travel insurance plans can provide peace of mind and prevent financial setbacks if something happens before or during your trip. A travel insurance policy can defray unexpected expenses when your plans are disrupted and provide emergency medical coverage when you’re traveling, whether domestically or abroad. 

Here are some travel insurance 2024 trends we’re seeing.

American spending on trips continues to rise

Although trip costs are increasing, Americans are not curbing their vacation spending. The average insured trip cost in 2022 was $5,240, while the 2023 average increased to $5,736, according to InsureMyTrip data. For the first three months of 2024, the average cost of a trip insured with travel insurance is $7,277.

InsureMyTrip data shows a 16.78% increase in the cost of travel insurance from 2022 (average cost of $276) to 2023 (average cost of $323). Policyholders may pay even more in the first quarter of 2024 — with higher-priced trips planned, the current average cost of travel insurance for January, February and March is $535. (This average will change as more travelers purchase trip insurance plans for their 2024 travels.)

“As Americans continue to spend more on vacations, they have more to lose if they need to cancel or return home early. A travel insurance policy is an efficient and cost-effective way to protect that financial investment for trips in 2024,” said InsureMyTrip senior vice president Suzanne Morrow.

These rates are similar to Squaremouth live data, showing the average trip cost for the last 365 days at $6,531 and the average travel insurance premium at $307 for a 16-day trip.

Most popular travel destinations in 2024

Squaremouth live data shows that in the past year, the top destinations travelers were buying travel insurance for included the United States, Mexico and Italy. 

Top 10 travel destinations insured in the past year

^{Source: Squaremouth.com. Based on travel insurance purchases from Nov. 12, 2022 to Nov. 12, 2023.}

“According to Berkshire Hathaway Travel Protection’s 2024 State of Travel Insurance (SOTI) study, the most visited countries of 2023 were the United States, United Kingdom and Mexico, respectively,” said Carol Mueller, vice president of Berkshire Hathaway Travel Protection. 

“While we expect to see these countries remain ‘hot’ in 2024, a good prediction for the trending travel destinations is to see what destinations the next generation of travelers have been visiting.” According to Mueller, Gen Z’s top destinations this year were the U.S., Mexico, Italy, France and the U.K.  

If safety is a concern, the SOTI study found that the top five safest travel destinations in 2024 are Switzerland, Iceland, New Zealand, Norway and Canada. 

Flight delays and cancellations on the rise

A recent USA TODAY Blueprint survey found that almost 75% of surveyed travelers experienced a flight cancellation or delay in the last year. Inclement weather was the top reason for these flight cancellations, though airline issues such as staffing shortages were close behind.

The Berkshire Hathaway SOTI study echoes our findings, with over half of respondents stating a fear of flight cancellations and delays, along with rising travel costs, are top concerns for 2024 and deciding factors in purchasing travel insurance. 

Squaremouth trend data shows that nearly 70% of people who buy travel insurance are searching for trip cancellation insurance versus travel insurance without cancellation benefits. 

People are planning more in advance

A quarter of the USA TODAY Blueprint survey respondents said they have started planning trips further in advance. Purchasing travel insurance within 10 to 21 days of your initial deposit can maximize your benefits — and it doesn’t cost any extra to buy it early.

Buying travel insurance as soon as you make your initial trip deposit can provide the option to purchase “cancel for any reason” (CFAR) and “interruption for any reason” (IFAR) coverage, for example. These optional add-ons available with some plans allow you to cancel or interrupt your travel plans for any reason, not only those listed in the travel insurance policy.

According to InsureMyTrip data, travelers purchased travel insurance an average of 86 days before their departure date in 2022 and 84 days before their trips in 2023. For trips in the first three months of 2024, the average time between buying travel insurance and traveling is 208 days.

Another perk of buying travel insurance early is that you may qualify for a pre-existing conditions exclusion waiver. Providing certain conditions are met, such as purchasing your travel insurance within a set number of days after making your initial trip deposit, your pre-existing medical conditions will not be excluded from coverage. 

Top concerns of travelers for 2024

According to Squaremouth, consumers searching for travel insurance plans online in the past year have most frequently used filters to find travel insurance for COVID-19, emergency medical and medical evacuation. 

^{Source: Squaremouth.com. Based on travel insurance purchases from Nov. 12, 2022 to Nov. 12, 2023.}

Having the ability to cancel your trip for any reason is becoming more popular. InsureMyTrip data shows that 9% of travelers purchased CFAR coverage in 2022 and 7% in 2023. But for trips in the first three months of 2024, that figure has increased to 16%.

Travelers are also choosing to rent cars more and participate in adventure activities. Berkshire Hathaway has seen rental car coverage add-ons double in 2023 compared to 2022. There has also been an increase in quotes and purchase intent in 2023 for its AdrenalineCare plan, which provides coverage for adventure and extreme activities that standard plans typically exclude.

Purchase intent for its LuxuryCare plan has also increased by 37%. This policy offers the highest limits for travel medical insurance and emergency medical evacuation, plus generous coverage for trip interruption and delay, baggage delay and lost luggage.

How to find the best travel insurance in 2024

Consider these factors when searching for the best travel insurance in 2024.

What coverage do you already have in place? 

Some credit cards offer benefits like trip cancellation and interruption, rental car coverage and baggage loss compensation if you pay for your flights and rental car with the card. If you have a travel credit card with these perks, you might not need as much coverage when you buy travel insurance.

If you have health insurance, check to see if it will cover you where you’re going. “Most domestic health insurance plans, including Medicare, do not cover medical bills abroad,” said Morrow. Should you need medical benefits as part of your travel insurance, take note of the plan’s medical expense limits and whether the coverage is primary or secondary.

Determine your travel insurance needs 

After evaluating your existing insurance possibilities, determine what coverages you need. Travel insurance bundles together different types of insurance, such as trip cancellation and emergency medical evacuation. The coverages and add-ons you choose will determine how much you pay for the plan. 

An adventure-specific policy or add-on makes sense if you’ll be participating in activities like scuba diving, snorkeling or mountain climbing. But this will cost you more than a basic travel insurance plan. 

CFAR gives you the most flexibility if you have to cancel your trip, but this add-on typically increases the cost of travel insurance by about 50%. It may be worth the cost, however, to avoid losing out on your entire nonrefundable, prepaid trip cost for canceling without a covered reason. 

IFAR is another optional upgrade available with some plans, if you want the option to cut your vacation short and return home for any reason. IFAR typically adds 3% to 10% to the cost of your travel insurance.

Compare travel insurance quotes 

You can get individual trip insurance quotes from travel insurance company websites, or compare plans from multiple companies on comparison websites like InsureMyTrip and Squaremouth. Look for added benefits like a pre-existing conditions exclusion waiver and primary medical benefits. 

Read your policy to understand coverage and exclusions

Remember to read your travel insurance policy carefully after buying, to determine if it fits your needs. Most companies offer a “free look period,” during which you can cancel the plan and receive a refund.