This Overlooked Travel Essential Is Now A 2025 Summer Must-Have

Forbes

11-05-2025

Travelers are prioritizing travel insurance during the summer of 2025. Here's why.
This summer's must-have travel accessory isn't new luggage or noise-canceling headphones. It's travel insurance.
Demand for travel policies is surging in the wake of economic and political uncertainty. Travelers are scrambling to protect their summer trips with policies that cover everything from cancellations to health care.
"The threats to travel have never been more substantial," says Scott Adamski, head of global product development and underwriting governance at Travel Guard. "Natural disasters such as hurricanes, wildfires, earthquakes, volcanoes and other related catastrophes may affect the very travel people are planning for the coming season."
Adamski says other events, such as the recent power outages at Heathrow Airport and in Spain and Portugal are also weighing heavily on travelers. And don't even get me started on that unpleasantness in Newark, with all the flight cancellations. No wonder travelers are scrambling for a policy this summer.
"Demand for travel insurance is high and still growing," says Greg Pearson, CEO of FocusPoint International, a global assistance company. "Leisure travelers, in particular, are more risk-aware than ever and are actively seeking protection against trip disruptions, medical emergencies, and global uncertainties. It's no longer viewed as a luxury or afterthought — it's become a standard part of travel planning."
But how much has travel insurance grown, and why are Americans buying so much of it? And how do you find the best travel insurance for the summer of 2025?
Alexandra Thompson, a celebrity stylist from Los Angeles, is one of the travelers who are buying insurance. Before embarking on a trip to the Maldives to see her husband's band perform, she bought a policy that covered her health expenses.
"If something serious were to happen, and it's bad," she says. "I heard they airlift you to Sri Lanka or India. That can't be inexpensive."
That's true. An air ambulance from the Maldives to Colombo would cost about $20,000. Thompson is supplementing her insurance coverage with a Medjet membership, which would take her back to her home hospital once she's stabilized.
Mike Haddad is buying a policy for his summer trip to Europe because he's worried about a possible cancellation. But what really turned him on to travel insurance was an incident that happened four months ago.
He was on a tour in Jordan and started feeling chest pains. He was rushed to a hospital, where the staff told him they would be happy to treat him — if he paid upfront. In cash.
"I didn't know the language, wasn't familiar with the health care system, and felt terrified," says Haddad, who runs a coupon website. (Fortunately, his travel insurance covered his costs.)
The travel insurance industry doesn't report its sales in a comprehensive way. But many travel insurance companies report that interest hasn't been this high since the pandemic, and in some cases, ever.
"Geopolitical instability and the overall tension of unpredictability of economic conditions are giving rise to travelers realizing the need for travel insurance more than ever," says Andrew Jernigan, CEO of Insured Nomads. "It's vital in these more turbulent times."
Yonder Travel Insurance reports that sales are up 35 percent since the beginning of the year. Cover Genius has clocked a 20 percent month-on-month increase in sales between February and March. Faye Travel insurance says that since the new administration took office this year, there's been an increase in travel insurance purchases averaging 15 percent month over month.
"This could be attributed to overall global volatility, like international tensions, as well as uncertainty about one's personal finances," says Lauren Gumport, a spokeswoman for Faye.
MissionSafe, a travel insurance provider, has seen a spike of 20 to 25 percent in its travel insurance sales compared with last summer.
"More travelers are treating insurance as an essential part of trip planning, not an optional extra," says Bill Pope, MissionSafe's president.
Even sales of related products, such as personal security coverage, are booming. Global Rescue, a security membership company, logged a 17 percent increase in membership sales last quarter.
"This is a defining moment in travel behavior," says Global Rescue's CEO, Dan Richards,. "Safety measures are no longer seen as a luxury but as a necessity for those navigating an unpredictable global landscape."
People are looking for a lot of safety this summer, says Dina El Mahdy, an insurance expert who teaches accounting at Morgan State University in Baltimore.
"Travelers are mainly seeking coverage for medical emergencies, as domestic health insurance is often not accepted internationally," she explains. "Other in-demand coverages include lost baggage and travel delays, as well as trip cancellation for family or work emergencies."
Let's break it down:
What are travelers buying for the summer of 2025? Experts say policyholders are keeping it simple this year.
"Comprehensive plans that cover trip cancellation, delays, and medical emergencies," says Mark Whitman, an insurance specialist at Rise & Shield.
Unpredictable weather, larger crowds, and more can cause disruptions that leave you with unexpected out-of-pocket expenses.
For example, Travel Guard offers several plans that include all the basics, such as trip cancellation, trip cancellation, trip interruption, and lost or delayed baggage. The company's insurance plans offer emergency medical expense and medical evacuation coverage for certain unexpected medical situations.
Whitman says the basics apply to summer travel insurance purchases. Travelers should make sure they have all their bases covered and that their policy addresses anything that could go wrong on their trip. And if they're doing something out of the ordinary that requires extra coverage, they should ask about it.
Another standout is the "cancel for any reason" policy.
"That's for travelers looking for extra flexibility this summer," says Beth Godlin, president of Aon Affinity Travel Practice.
The policy gives you the freedom to cancel your trip for any reason and receive a partial refund of your prepaid, nonrefundable expenses. It costs a little more than conventional insurance — roughly 10 to 12 percent of the cost of your trip — but at a time of high uncertainty, it can protect most of your vacation investment, says Godlin.
The days of buying travel insurance and never hearing from the company again are long gone. Travelers are consulting with their travel insurance companies before, during and after their trips, using smartphone apps like Allyz.
"We expect this trend of travelers seeking peace of mind by preparing for the 'what ifs' of travel to continue well into the future," says Daniel Durazo, a spokesman for Allianz Partners USA.
Another popular download is Travelex's Travel On app, which allows policyholders to receive real-time alerts about relevant travel risks. That allows them to stay ahead of potential challenges.
"If something does come up and they need help, they can tap to call our 24/7 travel assistance services," says Will Nihan, CEO of Travelex Insurance Services.
Let's face it, buying travel insurance can be confusing. And with so many first-time buyers, there are a lot of questions and concerns, according to Terry Boynton, president of Yonder Travel Insurance.
"An increasing number of travelers have more specific concerns that require unique coverage," he says. "Often, travelers seek the help of a travel insurance expert to verify this specific coverage in the fine print."
Reality check: Even with all the turmoil, there's not much evidence that this summer will be more dangerous than previous ones. But, as the experts will tell you, it sure feels that way.
'It's important to be prepared," says Travelex CEO Will Nihan. "Unpredictable weather, larger crowds, and more can cause disruptions that leave you with unexpected out-of-pocket expenses."
With travel insurance sales surging, smart travelers will focus on the basics to get the best travel insurance of 2025. That includes coverage of the essentials like trip cancellation, delays, and medical emergencies. Great support and expert advice will ensure that the policy actually works for you, too.