Upgraded Points recently surveyed more than 2,300 U.S. travelers about how often they purchase travel insurance, what they spend, and which vacation expenses they are most eager to protect. The comprehensive results reveal regional trends, demographic differences, and the lingering impact of past travel hassles on today’s insurance decisions.
The survey revealed that 58.6 percent of U.S. travelers have purchased travel insurance at least once, while 41.5 percent have never done so. However, when it comes to travel in 2025, the gap widens—63 percent of Americans have chosen to skip travel insurance altogether for their upcoming trips.
When travelers choose to insure, flights are the most commonly covered element, with 54.8 percent opting for protection. Car rentals come next at 44.8 percent, followed by hotel bookings at 34.5 percent.
State-wise, Maryland leads with 49 percent of travelers insuring their 2025 trips, just ahead of California (48.2 percent), Louisiana (48.1 percent), and Texas (46.6 percent).
According to the survey, 59 percent of Americans allocate less than 5 percent of their total trip budget to insurance. This may be tied to perception as 43.2 percent view traveling without insurance as only “slightly risky.” In reality, 17.3 percent of respondents report having lost money by skipping coverage, while a significant 82.7 percent say they haven’t experienced any financial setbacks.
One exception though is Virginia where 28 percent of travelers have lost money due to going without insurance, the highest rate of any state.
Who’s Buying Travel Insurance?
Not all travelers are the same: Millennials lead the pack in skipping coverage, with 65 percent going uninsured in 2025. While frequent flyers are far more cautious, those who fly three to five times a year insure their trips at a rate of 38.4 percent. Flyers that travel six to 10 times per year insure at a rate of 43 percent, versus just 19 percent for occasional travelers (averaging one to two trips).
These states lead the nation in protecting their vacations with travel insurance:
- Maryland (49.0 percent) residents insure nearly half of all 2025 trips, more than any other state.
- California (48.2 percent) follows closely, reflecting strong awareness of travel risks among West Coast travelers.
- Louisiana (48.1 percent) ranks third, with nearly half of its residents opting for trip protection.
Who Skipped the Insurance?
Midwestern and Western landlocked states tend to leave their trips unprotected:
- Colorado: 22.6 percent insured their 2025 trips
- Montana: 23.3 percent
- Iowa: 23.4 percent
- Idaho: 25.0 percent
- Michigan: 25.5 percent
Travel insurance habits can vary widely: 19.3 percent of travelers always or usually buy coverage, 37 percent never do, and 32.2 percent purchase it only occasionally or about half the time. The rest depend on credit card perks or membership-based plans for trip protection.
Methodology
2,359 U.S. travelers from 45 states were surveyed about their 2025 travel insurance habits, spending, perceived risks, and past trip disruptions; the responses represent a varied mix of ages, incomes, and travel frequencies. Due to low response rates, Alaska, Montana, North Dakota, Vermont, and Wyoming were excluded from state-level comparisons.
Check out detailed insights into travelers’ attitudes toward insurance, the price paid by the uninsured, and other survey results by visiting the complete study online.
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