Travel Insurance Statistics 2026: 63% Skip It
The travel and nomad insurance landscape in 2026 splits into two stories. US travelers spent USD 5.56 billion on travel insurance in 2024, a 46% jump from 2019 (USTIA), yet 63% of American travelers carried no coverage for their 2025 trips (Upgraded Points survey of 2,359 travelers). Emergency medical became the single most-claimed benefit for the first time in a decade, and a medical evacuation abroad runs USD 25,000 to over USD 250,000 (CDC). The global market reached USD 27.14 billion in 2025. This report compiles 12 verified data points from government agencies, the US Travel Insurance Association, UN Tourism, and major industry studies. Whether you are a digital nomad, a long-term traveler, or planning a single trip, these numbers show where the real financial risk sits.
Travel insurance sits at the intersection of two trends: record international travel and rising healthcare costs abroad. International tourist arrivals hit a post-pandemic record in 2025, and a single uninsured medical emergency overseas can cost more than a year of nomad living expenses. The gap between who needs coverage and who actually buys it remains wide.
This post covers market size, who buys travel insurance, what drives purchases, claim payouts, medical evacuation costs, and the insurance rules attached to digital nomad and Schengen visas. Every number links to a primary or major-source citation, with the data year labeled.
1. US travelers spent $5.56 billion on travel insurance in 2024
US travelers spent USD 5.56 billion on travel protection in 2024, according to the US Travel Insurance Association (USTIA) 2022-2024 Travel Protection Market Study. That is a 46% increase over the USD 3.81 billion spent in 2019, the last full pre-pandemic year.
The study was conducted by Willis Towers Watson, an independent actuarial firm, and the participating insurers represent more than 90% of the US travel insurance market. In 2024, USTIA members protected 86.97 million people across 54.87 million plans.
The figure marks a stabilized post-pandemic baseline rather than a temporary spike. Spending growth outpaced inflation over the five-year window, signaling that more travelers now treat insurance as a standard line item rather than an optional add-on.
For travelers, the takeaway is that the category has matured. Coverage that was niche a decade ago is now mainstream.
Source: US Travel Insurance Association - 2022-2024 Travel Protection Market Study (2025)
2. 63% of American travelers had no travel insurance for 2025 trips
Despite record spending, 63% of American travelers had not secured any travel insurance for their past or upcoming 2025 vacations. The figure comes from an Upgraded Points survey of 2,359 US travelers across 45 states, conducted July 9-17, 2025.
The same survey found that 58.6% of Americans have purchased travel insurance at some point in their lives, while 41.5% have never bought it. The gap between lifetime purchase and per-trip purchase reveals the core behavior: most people buy insurance occasionally, not consistently.
When travelers do insure, 59% spend less than 5% of their total trip budget on the policy. Flights were the most-protected expense at 54.8%, followed by car rentals (44.8%) and hotel bookings (34.6%).
The implication is a large, persistent coverage gap. The majority of travelers are exposed on any given trip, even though more than half have used insurance before.
Source: Upgraded Points - 2025 Travel Insurance Survey (2025)
3. Half of Americans (50%) have purchased travel insurance
Exactly half of American adults (50%) have purchased travel insurance at least once, according to a survey conducted for Aon Travel Practice by The Harris Poll. The survey polled more than 2,000 US adults aged 18 and over and was published in February 2025.
Only 15% buy coverage for every trip, confirming that occasional purchasing is the norm. Younger travelers lead adoption: 60% of Gen Z (ages 18-27) and 54% of millennials (28-43) have bought travel insurance, compared with 45% of Gen X and 43% of boomers.
Men were slightly more likely to buy than women, at 53% versus 47%.
For the travel industry, the generational split signals durable demand growth. As Gen Z and millennials become the dominant travel cohort, baseline insurance adoption should rise with them.
Source: Aon - New Survey: Half of Americans Have Purchased Travel Insurance (2025)
4. The global travel insurance market reached $27.14 billion in 2025
The global travel insurance market was valued at USD 27.14 billion in 2025 and is projected to reach USD 31.33 billion in 2026, according to Precedence Research. The market is forecast to climb to roughly USD 111.94 billion by 2035, expanding at a 15.22% CAGR from 2026 to 2035.
Europe held the largest regional share at 38% in 2025, while Asia Pacific is positioned as the fastest-growing region, projected to expand at a 16.73% CAGR through 2035.
The growth is anchored to recovering international travel and rising awareness of healthcare costs abroad. Mandatory insurance requirements attached to many visas, covered later in this report, also pull the baseline upward.
For travelers, a larger, more competitive market generally means more product choice and clearer comparison tools, especially for long-stay and nomad-specific policies.
Source: Precedence Research - Travel Insurance Market (2025)
5. The US traveler insurance penetration rate hit 40% in 2025
The US traveler penetration rate for travel insurance reached 40% in 2025, up from about 28% before the pandemic, according to HelloSafe's 2026 Travel Insurance Barometer. That rate is nearly double the global average of 22%.
Penetration measures the share of travelers who buy a policy, distinct from the share of the population that has ever bought one. The post-COVID jump reflects a lasting shift toward risk-aware travel rather than a temporary reaction.
HelloSafe attributes the increase to growing awareness of medical costs abroad, where a single emergency room visit can exceed USD 1,000 and hospital stays in high-cost destinations regularly run into the thousands.
The implication is a structural change in traveler behavior. Insurance is moving from afterthought to default, particularly for international and long-haul trips.
Source: HelloSafe - 2026 Travel Insurance Barometer: USA Market Trends (2026)
6. Emergency medical became the most-claimed benefit for the first time in 10 years
For the first time in more than a decade, emergency medical became the single highest-paid and most frequently claimed travel insurance benefit, accounting for 27% of all paid claims in 2024. The data comes from Squaremouth's analysis of claims filed between January 1 and December 31, 2024.
The average emergency medical payout rose 14%, climbing from USD 1,456 to USD 1,654. Across all benefit types, overall paid claims rose 18% year over year, and average payout amounts grew from USD 1,900 to USD 2,609.
Over 40% of paid claims in 2024 stemmed from trips that were canceled or cut short, while travel delay claims rose 15%.
The shift toward medical as the top claim type signals that travelers are increasingly using policies for what insurance is fundamentally for: protection against unexpected health costs abroad, not just trip-cost recovery.
Source: Squaremouth - Rising Travel Costs Led to a Big Shift in Travel Insurance Payouts in 2024 (2025)
7. A medical evacuation abroad costs $25,000 to over $250,000
A medical evacuation can cost from USD 25,000 for transport within North America to over USD 250,000 for more distant and remote locations, according to the US Centers for Disease Control and Prevention (CDC) Yellow Book.
This is the financial exposure that medevac coverage exists to absorb. The cost scales with distance, the severity of the medical condition, and how far the patient is from a facility capable of treating them. Evacuations from remote regions or by long-haul air ambulance sit at the top of the range.
The CDC also notes that comprehensive travel insurance policies that bundle trip cancellation typically cost up to 8% of the trip price, rising toward 15% for cancel-for-any-reason coverage.
For nomads and travelers heading to remote destinations, this single number is the strongest argument for carrying dedicated medical evacuation coverage. The downside risk is catastrophic relative to the premium.
8. US Medicare and Medicaid do not cover medical care outside the United States
US Medicare and Medicaid do not pay for medical care outside the United States, the US State Department confirms. The department strongly recommends buying medical evacuation insurance when traveling to areas with higher risk or limited medical care.
This is one of the most consequential and least understood facts in travel. Many older American travelers assume their domestic coverage follows them abroad. It does not. The gap leaves retirees and long-term travelers fully exposed to foreign hospital bills and evacuation costs unless they buy separate coverage.
The State Department guidance applies to every US citizen traveling internationally, regardless of trip length or destination.
The practical takeaway: domestic health coverage is not a substitute for travel medical insurance. Travelers who rely on Medicare at home need a separate international policy abroad.
Source: US Department of State - Travel Insurance (2025)
9. Schengen visas require a minimum of €30,000 in medical coverage
Every Schengen visa applicant must hold travel medical insurance with a minimum of EUR 30,000 in coverage, a legal requirement under Article 15 of the EU Visa Code (Regulation (EC) No 810/2009).
The policy must cover urgent medical attention, emergency hospital treatment, repatriation for medical reasons, and death, and it must be valid across the entire Schengen territory for the full duration of the stay. The requirement applies uniformly across all Schengen member states.
This makes insurance not just a financial safeguard but a hard entry condition for short-stay travelers who need a Schengen visa. Proof of compliant coverage must be submitted before a visa is approved.
For travelers from visa-required countries, the implication is direct: no compliant insurance means no visa. The EUR 30,000 floor is the baseline, and some consulates scrutinize the repatriation and territorial-scope clauses closely.
Source: AXA Schengen - €30,000 Coverage Requirement, citing EU Regulation (EC) No 810/2009, Article 15
10. The top reason Americans buy travel insurance is avoiding cancellation losses
The single most common reason Americans buy travel insurance is to avoid losing money if they have to cancel, cited by 41% of purchasers in the Aon Travel Practice survey. A close second, at 39%, was fear of unexpected issues arising before departure after booking months in advance.
Health-related reasons followed: 28% worried about getting sick before the trip, and 22% wanted supplemental medical coverage while abroad. Weather and natural disasters drove 26% of purchases.
The pattern shows that trip-cost protection still leads purchase intent, even though medical claims now dominate payouts. Travelers buy for the loss they can easily imagine (a forfeited booking) more than the one they cannot (a foreign hospital bill).
The gap between purchase motivation and actual claim experience is worth closing. The biggest financial risk on most trips is medical, not cancellation.
Source: Aon - New Survey: Half of Americans Have Purchased Travel Insurance (2025)
11. There were 18.5 million American digital nomads in 2025
The United States had 18.5 million digital nomads in 2025, a 2.2% increase over 2024 and a 153% rise since 2019, according to MBO Partners' 2025 Digital Nomads Trends Report. Digital nomads now make up roughly 12% of the US workforce.
This is the population for which travel and medical insurance is most structurally relevant. Digital nomads spend extended periods abroad, often move between countries within a single year, and rarely qualify for local public healthcare. Standard short-trip travel insurance frequently caps coverage at 30 to 90 days, which does not fit a nomadic schedule.
The result is a fast-growing market for nomad-native carriers that sell monthly, renewable, multi-country policies designed for people who do not have a fixed home base.
For this group, insurance is not a per-trip decision but a continuous one. Lapses in coverage between countries are the most common and most dangerous gap.
Source: MBO Partners - 2025 Digital Nomads Trends Report (2025)
12. International tourist arrivals hit a record 1.52 billion in 2025
International tourist arrivals reached an estimated 1.52 billion in 2025, almost 60 million more than in 2024 and a 4% increase year over year, according to UN Tourism's World Tourism Barometer. It marked a new record for the post-pandemic era.
International tourism receipts reached a preliminary USD 1.9 trillion globally, up 5% from 2024. UN Tourism forecasts further growth of 3% to 4% in 2026.
Record travel volume is the demand engine beneath every other number in this report. More trips mean more exposure to cancellation, delay, illness, and injury, which feeds both insurance purchases and claims.
For the insurance market, sustained arrival growth supports the long-run forecast of a market more than tripling by 2035. For travelers, it means more crowded, more expensive trips where a single disruption carries a higher cost.
Source: UN Tourism - International tourist arrivals up 4% in 2025 (2026)
What these numbers tell us
Three patterns emerge from the data. First, the travel insurance market is large and growing, with US spend at USD 5.56 billion and the global market at USD 27.14 billion, yet adoption remains uneven. A 40% US penetration rate paired with 63% of travelers uninsured on 2025 trips shows that even the most insured major market leaves most travelers exposed on any given trip.
Second, the nature of risk has shifted. Emergency medical is now the top claim type for the first time in a decade, and the catastrophic exposure is real: a medevac can exceed USD 250,000, while US Medicare covers nothing abroad. Travelers still buy primarily to protect trip costs, not health, which is a mismatch between motivation and actual risk.
Third, the structural drivers point up. Record tourist arrivals, mandatory insurance rules for Schengen and digital nomad visas, and a US digital nomad population of 18.5 million all push baseline demand higher. The market is forecast to more than triple by 2035.
The data shows a maturing market with a persistent coverage gap: most travelers remain uninsured on any given trip, even as medical claims and evacuation costs make that gap the single largest avoidable financial risk in international travel.
How Staywise helps you navigate this landscape
For digital nomads and long-term travelers, the insurance picture is tangled with the visa picture. Schengen visas demand EUR 30,000 of compliant coverage. Many digital nomad visas attach their own minimum-coverage thresholds. Staying insured across multiple countries in a single year, without lapses between borders, is the exact pain these numbers reflect.
Staywise (the visa compliance app for digital nomads) does not sell insurance, but it tracks the days and country movements that determine your visa status, residency exposure, and insurance windows. The app counts your days across every country automatically, alerts you 7, 3, and 1 day before any stay limit, and keeps a clean travel history you can export for visa or insurance applications. The in-app AI assistant answers visa and compliance questions in plain English.
If you are managing coverage requirements across borders, knowing exactly where you have been and how long you can stay is the foundation. Staywise handles that layer so the insurance decision is the only one left to make.
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Frequently Asked Questions
What percentage of travelers have travel insurance in 2026?
In the United States, the traveler penetration rate reached 40% in 2025, up from about 28% before the pandemic, per HelloSafe's 2026 Travel Insurance Barometer. That is nearly double the global average of 22%. However, an Upgraded Points survey found that 63% of American travelers had no insurance for their 2025 trips, because most people insure occasionally rather than for every trip. Half of US adults (50%) have purchased travel insurance at least once, according to an Aon survey.
How much does a medical evacuation cost without insurance?
A medical evacuation costs from USD 25,000 for transport within North America to over USD 250,000 for distant or remote locations, according to the US CDC Yellow Book. The cost scales with distance, the severity of the condition, and how far the patient is from a facility able to treat them. Because US Medicare and Medicaid do not cover care abroad, an uninsured evacuation falls entirely on the traveler, which is why dedicated medical evacuation coverage is strongly recommended for international and remote trips.
How big is the travel insurance market?
The global travel insurance market was valued at USD 27.14 billion in 2025 and is projected to reach USD 31.33 billion in 2026, growing to roughly USD 111.94 billion by 2035 at a 15.22% CAGR, according to Precedence Research. Europe held the largest share at 38% in 2025. In the US alone, travelers spent USD 5.56 billion on travel insurance in 2024, a 46% increase over 2019, per the US Travel Insurance Association.
What is the most surprising travel insurance statistic?
The most counterintuitive finding is that 63% of American travelers had no travel insurance for their 2025 trips, even though the US has one of the highest penetration rates in the world at 40% and total US spend hit USD 5.56 billion in 2024. The gap exists because most travelers buy insurance occasionally, not for every trip. Equally surprising: emergency medical became the most-claimed benefit for the first time in a decade in 2024, yet travelers still cite cancellation losses as their top reason for buying.
Where do these travel insurance statistics come from?
The statistics in this report come from a mix of government agencies, industry associations, and major studies: the US Travel Insurance Association (2022-2024 Market Study by Willis Towers Watson), the US CDC Yellow Book, the US State Department, UN Tourism's World Tourism Barometer, the EU Visa Code (Regulation 810/2009), MBO Partners' 2025 Digital Nomads Trends Report, Squaremouth claims data, Precedence Research, and consumer surveys from Aon (via The Harris Poll) and Upgraded Points. Every figure is labeled with its data year.
Related guides
- Digital Nomad Visa Statistics 2026
- Expat Healthcare Statistics 2026
- The Schengen 90/180 Rule Explained
- Can You Legally Work Remotely on a Tourist Visa?
About Staywise
Staywise is the visa compliance app for digital nomads. Built by nomads for nomads, it tracks your days across every country automatically, alerts you before overstays, and keeps passport details on your device for privacy. The in-app AI assistant answers visa questions in plain English. Available on iOS.
Important: This content is informational and does not constitute legal, tax, or immigration advice. Visa rules, tax regulations, and entry requirements change frequently and vary by individual circumstances. Always verify current requirements with official government sources or a qualified professional before making travel decisions. Staywise tracks your days and surfaces compliance information, but final responsibility for compliance rests with the traveler.