Are Americans Buying or Skipping Travel Insurance in 2025? [Survey]

Travel insurance is one of those trip essentials many Americans consider yet far fewer commit to.

In an era of flight disruptions, economic uncertainty, and evolving travel habits, we wanted to understand how travelers are actually approaching trip protection in 2025. Are they playing it safe with coverage, or still rolling the dice?

To find out, we surveyed more than 2,300 travelers across the U.S. to explore how often they buy travel insurance, how much they spend on it, and what kinds of vacation expenses they’re most likely to protect. The results reveal not just how many Americans are buying travel insurance, but also who’s buying it, why they’re doing so, where it’s most common, and how past travel disruptions are influencing attitudes toward trip protection across the country.

Key Takeaways

• 58.6% of U.S. travelers have purchased some form of travel insurance in their lifetimes, while 41.5% say they never have.
• For 2025 trips specifically, 63% of American travelers haven’t purchased any travel insurance.
• Flights are the most commonly insured travel expense nationwide (54.8%), followed by car rentals (44.8%) and hotel bookings (34.5%).
• Maryland leads all states in travel insurance adoption: Nearly half of travelers (49%) have insured their 2025 trips, followed by California (48.2%), Louisiana (48.1%), and Texas (46.6%). 
• The majority of Americans (59%) spend less than 5% of their total trip budget on travel insurance.
• The largest share of travelers (43.2%) view going uninsured as only slightly risky.
• While 17.3% of travelers say they’ve lost money by skipping travel insurance, 82.7% report no financial loss. The most common loss is between $101 and $499.
• In Virginia, 28% of travelers say they’ve lost money by skipping travel insurance — the highest rate of any state.

Who’s Buying Travel Insurance and Who’s Still Skipping It?

Despite rising travel costs and increasingly unpredictable trips, many Americans still hesitate to insure their vacations. Our survey found that 58.6% of U.S. travelers have purchased some form of travel insurance in the past, whether directly or through a credit card or membership benefit. Still, 41.5% say they’ve never purchased any kind of travel insurance, highlighting a persistent divide between the cautious and the carefree.

When it comes to 2025 trips specifically, that divide deepens. 63% of travelers say they haven’t secured any type of travel insurance for their past or upcoming 2025 vacations. Just over one-third (36.7%) have some form of protection in place — 25% purchased coverage outright, while 11.7% are passively protected via credit cards or memberships.

There are some noticeable generational differences, as well. Millennials are the least likely to insure their 2025 trips, with 65% traveling without any coverage. Meanwhile, the frequency of flying matters: Travelers who fly 3 to 5 times per year (38.4%) and 6 to 10 times (43%) are more than twice as likely to purchase standalone travel insurance for their 2025 trips compared to those who fly just 1 or 2 times annually (19%).

Income level also correlates closely with insurance adoption. Among Americans earning over $200,000, 34% have insured their 2025 personal trips — nearly double the rate of those earning less than $50,000 (17%).

Where you live plays a role, too. Coastal high-population states and higher-income regions show a stronger commitment to coverage:

States Most Likely To Insure Their Vacations:

• Maryland: 49% insured their 2025 trips
• California: 48.2%
• Louisiana: 48.1%
• Texas: 46.6%
• Delaware: 46%
• New Jersey: 45.3%
• North Carolina: 45.3%

States Least Likely To Insure Their Vacations:

• Colorado: 22.6% insured their 2025 trips
• Montana: 23.3%
• Iowa: 23.4%
• Idaho: 25%
• Michigan: 25.5%
• Indiana: 26%
• Kansas: 26%

In general, Midwestern and Western landlocked states are less likely to insure their trips, perhaps reflecting regional attitudes toward travel risk or fewer perceived barriers to cancellation or delays.

Consistency also remains elusive. While 19.3% of travelers say they always or usually buy travel insurance, a much larger portion (37%) say they never do. Another 32.2% say they purchase insurance about half the time or occasionally. The remainder of travelers rely on credit cards or membership-based coverage.

Even among those who do buy coverage, cost plays a major role. The majority of Americans (59%) spend less than 5% of their total trip budget on travel insurance, while 37.5% spend 5% to 10%, and only 3.6% exceed the 10% mark.

What Travel Purchases Do Americans Protect?

When it comes to trip protection, Americans are most likely to cover the big-ticket items. Flights top the list, with 54.8% of travelers saying they’re most likely to insure their airfare. Car rentals (44.8%) and hotel bookings (34.6%) follow closely behind. Interestingly, hotel coverage is more common than protection for vacation rentals, such as Airbnb, which are insured by 27.3% of travelers. Meanwhile, less expensive or more spontaneous experiences — like concerts (12.3%), tours or excursions (11.4%), and train tickets (7.3%) — are far less likely to be covered.

This pattern suggests a clear logic: Travelers are more inclined to insure bookings with higher upfront costs or stricter cancellation terms, such as flights and rentals, while skipping protection for flexible or lower-stakes purchases.

However, regional habits reveal interesting exceptions. In California, Colorado, Kansas, Oklahoma, and Utah, travelers are more likely to insure car rentals than flights, perhaps a trait attributable to road trip culture or the need to drive in these spread-out regions. Meanwhile, travelers in Connecticut, Delaware, Kansas, Kentucky, Louisiana, New Hampshire, Ohio, and Wisconsin are more likely to insure Airbnbs than hotels. This may be because Airbnbs often involves higher upfront costs and stricter cancellation policies, prompting some travelers to be more cautious about protecting their stay.

Generational trends also shape what people protect. Gen Z stands out as the most likely generation to insure concerts, shows, and event tickets. 18.4% of Gen Zers say they’re likely to insure concerts, compared to 13% of millennials, 9.8% of Gen Xers, and only 7.3% of baby boomers. Gen Z is also more likely than millennials to insure flights, hotels, and Airbnbs, suggesting they’re more cautious about unexpected disruptions and protecting their travel investment.

When asked where they would cut back first to save money, travelers overwhelmingly pointed to flight upgrades — things like business or first class seats — as their first sacrifice. High-end hotels and resorts ranked second on the list of droppable luxuries, followed by fine dining. Notably, more travelers would give up fancy meals on their vacations than forgo travel insurance.

Do Travelers See the Risk or Just Hope for the Best?

Even if plenty of Americans are skipping travel insurance, most aren’t totally in the dark about the risks. When asked how risky it is to travel without insurance in 2025, a combined 91% of travelers acknowledged at least some level of risk. However, the perceived risk tends to be low: The largest share of travelers (43.2%) view going uninsured as only slightly risky. So while most people are aware of potential issues, many don’t see them as urgent or serious enough to prompt action, such as purchasing insurance.

At the state level, there’s a clear overlap between the places where travelers perceive greater risk without travel insurance and those where insurance is more commonly purchased. For example, New Jersey, North Carolina, and Texas all appear in the top states for both perceived risk and actual insurance adoption. 

States Where Travelers See the Biggest Risk in Going Uninsured:

• Texas: 31% think skipping insurance is very risky
• Virginia: 29.8%
• North Carolina: 28.3%
• Georgia: 26.8%
• New Jersey: 24.6%

On the flip side, states with the lowest perceived risk also tend to lag in insurance uptake. Hawaii, Iowa, Kentucky, Nevada, and Rhode Island lead the nation in downplaying the risk of traveling uninsured, with as many as 18.8% in Rhode Island believing it’s not risky at all.

States Where Travelers See the Smallest Risk in Going Uninsured:

• Rhode Island: 18.8% think skipping insurance isn’t risky at all
• Kentucky: 17.6%
• Hawaii: 16.7%
• Iowa: 14.9%
• Nevada: 14.9%

Frequent flyers, however, take a far more cautious stance. Those who travel often are more than twice as likely as the average traveler to say that going without insurance in 2025 is extremely risky. This elevated risk awareness may reflect firsthand experiences with delays, cancellations, or emergencies — challenges that infrequent travelers might underestimate.

Who’s Paid the Price for Skipping Travel Insurance?

While many travelers view trip insurance as an optional add-on, those who’ve skipped it and suffered the consequences often feel differently. According to our survey, 17.3% of U.S. travelers say they’ve lost money at some point because they didn’t have travel insurance. That may sound like a small share, but for those affected, the financial sting is real.

The most common loss was between $101 and $499, reported by 45% of those who’ve been burned. Another 28.9% said they lost between $500 and $999, with smaller groups reporting even steeper losses. These setbacks often become teaching moments: 64% of affected travelers say the experience has made them more likely to purchase travel insurance in the future.

Certain states stand out for the financial fallout. In Virginia, 28% of travelers say they’ve lost money by skipping travel insurance — the highest rate of any state. It’s no coincidence that Virginia also ranks as the second-most risk-averse state in our survey when it comes to trip protection, showing how personal financial losses can shift perspectives fast.

Frequent travelers are also more likely to have lost money by going uninsured. The more you fly, the more likely you are to encounter issues like cancellations, lost luggage, and last-minute itinerary changes. That exposure may be why seasoned flyers take insurance more seriously.

Despite these hard lessons, the overwhelming majority — 82.7% — say they’ve never lost money because of a lack of insurance. That may be one reason many still see trip coverage as a “nice-to-have” rather than a travel essential.

Are Attitudes Toward Travel Insurance Changing in 2025?

Travelers in 2025 are beginning to reconsider their stance on trip coverage, but only slightly. When asked whether they’re more likely to purchase travel insurance now compared to 2 years ago, 43.8% said yes, while 42.6% said no. That slim margin shows that while perceptions are starting to shift, many Americans remain unconvinced they need to purchase travel insurance.

The strongest shift is happening among younger travelers. Gen Z leads all age groups, with 49.7% saying they’re more likely to buy travel insurance today than in the past. Millennials, however, are more resistant to change. Only 40.3% say they’re more likely to purchase travel insurance now, while 46.5% say they’re not.

Among those who are now more inclined to buy insurance, the most common reason is simple: peace of mind. Nearly 64.5% of travelers say that avoiding the stress of emergencies is their top motivator. Logistical challenges are also pushing people toward coverage: 41% cite concerns over cancellations or delays, while 37.9% say travel feels more unpredictable overall.

For those who still avoid travel insurance, cost remains the biggest barrier. When asked why they skip it, travelers pointed to the following reasons:

• “It’s too expensive”: 48.6%
• “My trips aren’t expensive enough to justify it”: 37.7%
• “I’ve never had a trip go wrong”: 24.8%
• “I rely on flexible or refundable booking options”: 23.7%
• “I don’t understand what’s covered”: 13.9%

Ultimately, the decision to insure or not often comes down to how much risk a traveler is willing to accept and how much they’re willing to pay to reduce it.

Hot Tip:

Ready to learn more about getting travel insurance for your next trip? Read our comprehensive guide to travel insurance.

Methodology

To understand how Americans view and use travel insurance in 2025, we conducted an online survey of 2,359 U.S. travelers across 45 states between July 9 and July 17, 2025, drawing from a diverse sample across age groups, income levels, and travel frequency. Respondents answered a mix of questions about their travel insurance habits, perceived risk, spending behavior, and past experiences with trip disruptions. We also analyzed differences by state. Because of limited respondent counts, Alaska, Montana, North Dakota, Vermont, and Wyoming were excluded from state-level analyses.

Final Thoughts

While most Americans acknowledge some level of risk when traveling uninsured, the decision to actually buy coverage remains deeply personal and deeply divided. Some travelers have learned the hard way, losing hundreds due to canceled plans or emergencies, while others continue to roll the dice, betting on flexibility or luck.

This study shines a light on how many insure their trips, which expenses they value most, and how travel behavior varies by state, income, and generation. As trip uncertainty grows, so does the need for clear, informed decisions. For travelers looking to protect their next adventure, understanding the best credit cards that offer travel insurance is a smart place to start.