As travel costs continue to rise in 2025, many travelers are looking for ways to save money on their trips and their travel protection—but in the process, they may be making costly mistakes. 

Squaremouth, the nation's leading travel insurance comparison site, explains three mistakes travelers make that cause them to spend more than they need to on travel insurance.

Skipping Trip Cancellation Coverage

In 2024, more than 40% of paid travel insurance claims were due to trips that were canceled or cut short, with travelers receiving an average payout of over $2,000. With 2025 trip costs up 24% over last year, it's even more important for travelers with prepaid expenses to protect their financial investment in their trip. 

Skipping Trip Cancellation coverage could leave you with big financial losses if something unexpected happens—like getting sick, bad weather, or a delay with your travel provider—that stops you from going on your trip.

Squaremouth Tip: It might feel like you're saving money by cutting back on coverage, but if you have a lot of non-refundable costs, it's worth getting a policy that includes Trip Cancellation to protect your investment.

Overestimating Your Non-Refundable Trip Costs

While it's important to have trip cancellation coverage, make sure you're not "over-insuring" your trip. The total cost of your trip plays a significant role in determining your insurance premium. You have the option to insure all, part, or none of your trip expenses—but coverage only applies to prepaid, non-refundable costs.

Squaremouth Tip: Only insure the amount you'd actually lose if you need to cancel. For example, if you're facing a 50% cancellation fee for a hotel reservation, only insure that 50% instead of the full cost of the hotel to lower your policy price.

Overlooking the Most Affordable Policies

When shopping for travel insurance, higher cost doesn't always equal better coverage. Many travelers dismiss cheaper options without realizing that the least expensive policy might offer the same protection as a more expensive one.

Squaremouth Tip: Choose the most affordable policy that still covers your needs. Start by determining how much coverage you need for your trip, then compare plans to find the least expensive option with the best coverage for your situation.