Travel Insurance a Growth Industry - 5 States Considered

Americans spend about $4 billion each year on travel insurance, says the US Travel Insurance Association. That’s a lot of money.

And why not? Compared to the high cost of business and vacation travel, spending a few dollars on insurance is a smart way to protect your tip from flight cancellations, lost luggage, medical expenses and other mishaps.

California

Californians are way ahead of other states in travel insurance. They spend more than the next two states combined. Californians report spending 17% more on travel insurance this year than last year. The average trip costs Californians $3,648. That sounds like a lot, but consider this: One Californian paid $172,000 for a single trip.

The average Californian traveler is 35 to 49 years old and most frequently visits Mexico when going abroad.

New York

While New Yorkers increased their year-over-year spending on travel insurance by 25%, their average cost per trip rates second-lowest at $2,909. Only West Virginians spend less.

This year’s a New Yorker insured a $109,232 trip. Average travelers are 25 to 40 years old and their travel plans are likely to include Israel.

Florida

Florida takes third place in insurance spending. Although they seem to spend less on trips, Floridians travel a lot, Squaremouth says. The state’s 33% increase in year-over-year travel-insurance spending is the single largest increase on this list.

Residents of the Sunshine State spend an average of $3,965 per trip, and the year’s most expensive trip cost $127,000. The average age of a Floridian traveler is between 50 and 69. Floridians love to go to Italy.

Texas

Texans spend an average of $3,475 per trip - about the same as last year. On the other hand, the most expensive trip from Texas is also the most expensive trip on the list: $175,000. Expenditures on travel insurance grew by 19% this year.

The typical Texan traveler is 40-55 years old and the most common travel location outside the US is Mexico.

Washington

People from Washington spent an average of $284 on travel insurance per trip this year - a 3% increase compared to last year. Residents of Washington spend an average of $3,799 per trip.

The most expensive trip registered in the state of Washington was $120,000, and the typical traveler is 45 to 60 years old. According to Squaremouth, Canada is the location of choice when it comes to traveling abroad.