The Most Popular Types of Travel Insurance

Last Updated: June 21, 2024January 16, 2025 — 4 min read

Purchasing travel insurance is so much easier when you know the type of coverage you’re looking for. With so many plans and providers on the market today, finding ways to narrow your search can save you time and money and ensure peace of mind.

One way to narrow your search is to explore the best travel insurance companies and most popular types of insurance services, which we’ve outlined below.

What are the three main types of coverage?

You’ll likely encounter the following coverage types during your hunt for travel insurance:

Comprehensive Travel Insurance

Comprehensive plans are the most popular type of travel insurance. Roughly 65% of all policies sold through Squaremouth are comprehensive. However, these tend also to be the most expensive, with an average cost of approximately $400. These policies typically cost 5-10% of your insured trip cost.  

What makes a policy comprehensive, you ask? Plans in this category provide the highest level of trip protection for the most common traveler concerns. More specifically, they’re the only type of policy that can offer reimbursement if you need to cancel your trip unexpectedly while also covering things like medical emergencies, delays, and luggage

Most comprehensive plans cover:

• Trip cancellations
• Trip interruptions
• Medical care
• Emergency medical evacuation
• Travel delays
• Baggage delays

Comprehensive plans offer add-ons, such as Cancel For Any Reason (CFAR), providing even greater flexibility.

Travel Medical Insurance

Travelers purchase insurance to protect themselves if they get sick or injured during their trip. This coverage is particularly in high demand among international travelers because most U.S. healthcare plans don’t offer health insurance coverage abroad. 

Travel medical policies are primarily designed to cover unexpected medical emergencies during a trip. This can range from a brief visit to the doctor to an emergency airlift. 

Travel medical plans are budget-friendly and can save you thousands of dollars if you need to file a claim. 

However, consider whether you have a pre-existing medical condition when exploring plans. Plans often offer waivers, but a specific look-back period varies between travel insurance providers. 

Also, these plans are beneficial for cost-effective travel with specific needs. Travel medical insurance plans offer all the same benefits as a comprehensive policy except for cancellation, with an average premium of roughly $95 in 2023.  

Annual Travel Insurance

While not as common as other types of travel insurance, Annual plans or multi-trip travel insurance plans provide a unique way to protect multiple trips with one policy. Rather than covering travelers for a single journey, as single-trip plans do, Annual travel plans offer coverage for any number of trips within 12 months. 

This type of coverage can be a cost-effective alternative to purchasing multiple policies throughout the year. Most annual plans don’t include trip cancellation coverage and will provide coverage options similar to travel medical policies.

What’s covered:

• Emergency medical care
• Medical evacuation
• Trip interruptions
• Travel and baggage delays

Annual plans are a cost-effective alternative for frequent travelers, with an average yearly policy cost of $420 in 2023. However, they may not suit those looking for cancellation coverage. While this is more expensive than Travel Medical, it does make sense for travelers taking more than four trips a year. 

What type of insurance is right for you?

Are you still unsure what coverage makes the most sense for your next trip? That’s okay. Finding the right coverage can take time, but we have your back. Check out our tips about finding the best value here.

Also, below are some scenarios to guide your decision:

Best for Travelers with Nonrefundable Trip Costs 

Take a moment to think about what you may lose if you have to cancel your trip the day before you’re scheduled to depart. Are your flights refundable? Would you be able to get your accommodation expenses back?

If you have many prepaid, non-refundable travel expenses, we highly recommend a comprehensive travel insurance policy. These policies provide flexibility before a trip and can reimburse costs if you are forced to cancel for a covered reason, such as illness or severe weather. 

But what coverage limit amounts are needed to provide travel protection adequately? Our breakdown of recommended amounts is available here.

Best for Travelers Seeking International Medical Coverage

Consider a travel medical policy if you need to cover unexpected medical expenses. Many of these plans offer hundreds of thousands of dollars in medical coverage and can usually be purchased for less than $100. 

Before purchasing, ensure the plan provides adequate coverage for your trip and also has evacuation coverage.

Best for Frequent Travelers

Frequent travelers should consider an annual travel insurance plan, which provides continuous coverage for multiple trips yearly. However, keep in mind that these policies usually exclude trip cancellation benefits. If cancellation coverage is essential, pair your annual plan with a comprehensive policy or check if your credit card offers travel protection.

Side-by-side comparison

See a bird’s-eye view of how the most popular types of travel insurance coverage compare head-to-head. 

The bottom line

Travel insurance comes in all shapes and sizes. The most common types of insurance you’ll come across during your search will be comprehensive, travel medical, and Annual policies. 

All types of travel insurance have their pros and cons. Your budget, coverage needs, and travel plans will all dictate what type of policy is right for you. For more information, check out our breakdown see our last coverage breakdown.