The Most Popular Types of Travel Insurance

At first glance, buying travel insurance seems like a daunting task. But purchasing the right policy is a much easier decision when you know what type of coverage you need. Plus, with so many different plans and providers available on the market today, finding ways to narrow your search can save you time and money and ensure peace of mind.

Squaremouth has outlined the most popular types of travel insurance policies below to help you narrow your search and find the best coverage for your trip.

What are the main types of travel insurance?

There are three main types of travel insurance plan that you will likely encounter when quoting travel insurance: comprehensive, travel medical, and annual.

1. Comprehensive Travel Insurance

Comprehensive plans are the most popular type of travel insurance. Based on proprietary data analyzing thousands of travel insurance plans sold in 2025, roughly 65% of all policies sold are comprehensive. However, these tend also to be the most expensive, with an average cost of approximately $400. These policies typically cost 4-10% of your insured trip cost.  

So what makes a policy comprehensive? 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 for your trip costs if you need to cancel your trip unexpectedly, while also covering things like medical emergencies, delays, and luggage.

Most comprehensive travel insurance plans cover:

• Trip cancellations and interruptions, if you are unable to travel for a covered reason, like an illness or severe weather
• Medical emergencies that need to be treated during your trip
• Emergency medical evacuations if you need immediate transportation to a hospital while traveling
• Travel delays while en route to your destination
• Lost baggage or delayed luggage on your departing flight

Comprehensive plans offer add-ons, such as Cancel For Any Reason (CFAR), providing the most possible cancellation flexibility.

2. Travel Medical Insurance

Many travelers purchase insurance primarily to protect themselves if they get sick or injured during their trip. This coverage is particularly in high demand among international travelers, as most U.S. healthcare plans don’t offer health insurance coverage abroad. This means you would be stuck paying out of pocket for medical treatment during your trip.

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 more budget-friendly than comprehensive plans because they don’t cover your trip costs. These plans offer all the other benefits that comprehensive policies offer, with an average premium of roughly $90. And these plans can still save you thousands of dollars if you need to file a medical claim. 

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. 

3. Annual Travel Insurance

While not as common as other types of travel insurance, annual plans, also known as multi-trip travel insurance plans, provide a unique way to protect multiple trips within one policy. An annual plan covers multiple trips over a 12 month period.

These plans are primarily meant to provide medical benefits while you’re traveling over the course of a year, but also offer some coverage for delays, luggage, and in rare cases cancellations or interruptions.

This type of coverage gives travelers a cost-effective and convenient alternative to purchasing multiple policies throughout the year.

What’s covered:

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

Annual travel insurance plans cost an average of roughly $300. While this is more expensive than a singular travel medical policy, it does make sense for travelers taking more at least 3 international trips a year. 

What type of insurance is right for you?

Finding the right type of travel insurance can save you money up front when you buy the policy, and again down the road in the event you need to claim through your policy. Are you still unsure what coverage makes the most sense for your next trip?

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 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.