With Summer Trip Costs Reaching $9,668, Experts Share 5 Travel Insurance Mistakes That Could Cost Travelers the Most
St. Petersburg, FL – June 25, 2026 — According to Squaremouth, the nation’s leading travel insurance marketplace, average summer trip costs have climbed to $9,668 in 2026, a 24% increase compared to last summer.
With an increasingly unpredictable summer travel season underway, fueled by rising airfares, virus outbreaks, and ongoing geopolitical tensions, travelers are looking for more affordable ways to protect their trips. But in an effort to save money, even experienced travelers could make expensive mistakes when purchasing travel insurance.
Squaremouth experts share the top travel insurance mistakes to avoid in 2026.
#1. Waiting to Buy A Policy:
This year, when you buy your policy, matters just as much as what you buy.
Most travelers don’t realize that the best coverage options, including Cancel For Any Reason (CFAR), Interruption For Any Reason (IFAR), and pre-existing medical condition waivers, are only available within 14 to 21 days of your first trip deposit. Wait longer than that, and those options are off the table entirely.
#2. Skipping Trip Cancellation Protection To Save Money:
Although summer trip costs have surpassed $9,000 for Squaremouth shoppers, sales of comprehensive coverage hit a 7-year low in Q1 2026. Travelers are instead choosing more limited plans that don’t include a key benefit: trip cancellation. Without it, one single disruption, such as illness, a family emergency, or job loss, could jeopardize your entire investment.
#3. Assuming Standard Coverage Is Enough In 2026:
From government shutdowns to airspace closures, many of the disruptions impacting travel this year aren’t covered by standard trip cancellation policies. This is where upgrades like CFAR can fill gaps. Interest in CFAR surged nearly 30% since the Iran war began in March, but again, timing is key to lock in eligibility.
#4. Relying On A Credit Card:
Many Americans assume credit cards, like Chase Sapphire Reserve or Amex Platinum, provide sufficient travel protection for their trips abroad. But in reality, these cards are great for travel delay and luggage benefits, but they provide little to no coverage for emergency medical situations, and their trip cancellation benefits are often capped well below the cost of a luxury, family, or group trip.
#5. Assuming Domestic Trips Don’t Need Coverage:
Travel insurance isn’t just for international trips. With the average domestic trip costing nearly $6,000 this summer, the financial risk of canceling or cutting a trip short is just as real. Flight cancellations, severe weather, and unexpected interruptions can still leave travelers on the hook for non-refundable flights, hotels, and last-minute rebooking costs. Travelers with primary health insurance may not need the medical component, but trip cancellation and travel delay coverage are just as relevant at home as they are abroad.
“Of this list, the mistake most often made by travelers is waiting to purchase insurance. By the time they seek coverage, they’re no longer eligible for key benefits like CFAR or IFAR,” shares Chrissy Valdez, Senior Director of Operations at Squaremouth. “The best time to buy travel insurance is the day you make your first trip deposit, not the week before you leave.”
To compare policies for your summer travel plans, visit squaremouth.com.