Personal Finance Insurance Travel Insurance
Written by Business Insider
Updated
2024-04-23T21:27:59Z
- What is travel insurance?
- Average cost
- When to buy travel insurance
- Average cost by age
- What does travel insurance cover?
- FAQs
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- The average travel insurance premium this week is $284.68, about the same compared to last week.
- For travel in the United States, the average premium is $92 to $400.
- Travel insurance protects against delayed baggage, trip cancellation, and more.
The average cost of travel insurance fluctuates throughout the year, based on demand and whether or not school's in session. Also keep in mind that where you're traveling and how many people are taking the trip will affect your exact premium.
Understanding Travel Insurance
Travel insurance plans can cover both domestic and international travel. It could protect against something as familiar as delayed baggage (experts estimate 85% of lost luggage is returned to its owner within 48 hours) or as complicated as trip cancellation.
The benefits and limitations of travel insurance vary based on the company and plan. Above all else, this insurance coverage offers peace of mind.
Some credit cards offer a limited amount of travel insurance annually. If you need clarification on what your credit card offers, contact your provider to verify. These plans are great for cancellations and interruptions but may not cover more costly losses associated with unexpected medical expenses or emergency evacuations.
Individual travel insurance plans include this and much more. Travel insurance protects travelers from the unexpected when away from home.
Average Cost of Travel Insurance by Destination
Some countries are naturally more expensive travel destinations due to higher flight and lodging costs, which could increase travel insurance costs. Travel insurance will generally cost 5% to 10% of your total trip price, according to SquareMouth.
Here's how the prices stack up:
| Country | Average trip cost | Average cost of travel insurance |
| United States | $4,203.22 | $210-$420 |
| Italy | $5,591.53 | $280-$559 |
| Mexico | $2,280.93 | $114-$228 |
| Spain | $3,545.54 | $177-$355 |
| France | $4,195.18 | $210-$420 |
| Japan | $3,932.64 | $197-$393 |
| Canada | $3,598.33 | $180-$360 |
| United Kingdom | $4,004.57 | $200-$400 |
| Greece | $5,904.37 | $295-$590 |
| United Kingdom | $3,628.15 | $181-$363 |
Source: SquareMouth
How Far in Advance to Purchase Travel Insurance
According to an AAA travel survey, 88% of travelers say that reimbursem*nt after a trip cancellation is the most valuable benefit of trip insurance.
According to data gathered by SquareMouth in the last six months, travelers tend to purchase trip cancellation travel insurance 53 days before their trip. Meanwhile, travelers without trip cancellation insurance will buy a policy approximately 16 days before their trip. Regardless of when you buy, cancellation protection can kick in to protect you against the unexpected.
| Policy type | Average trip length (days) | Average cost of travel insurance |
| Cancellation | 13 | $400.25 |
| Non-cancellation | 19 | $91.93 |
Source: SquareMouth
Average Cost of Travel Insurance by Age
A traveler's age is a significant factor in determining the cost of travel insurance. The older a traveler is, the higher travel insurance premiums are. For instance, a senior traveler may need more insurance for health-related emergencies than a millennial.
When calculating your travel insurance premium, travel insurance providers consider the likelihood of a medical emergency.
| Generation | Average cost of trip | Average cost of travel insurance |
| Gen Alpha (born 2013 or later) | $1,110.23 | $56-$111 |
| Gen Z (born 1997 through 2012) | $1,991.31 | $100-$199 |
| Millennial (born 1981 through 1996) | $1,780.58 | $89-$178 |
| Gen X (born 1965 through 1980) | $2,521.79 | $126-$252 |
| Baby Boomers (born 1946 - 1964) | $2,904.78 | $145-$290 |
| Silent (born 1945 or before) | $3,183.90 | $159-$318 |
Source: SquareMouth
Get your free travel insurance quote with SquareMouth »
Travel Insurance Rate Tips
How much does travel insurance typically cost?
Travel insurance rates through most providers fall between 4% and 8% of the total trip cost. Like the cost of flights, cruises, etc., rates may vary substantially based on the season, your original location, your destination, and other factors. This week, the average cost of a policy was close to $300.
How can I save money on travel insurance?
To save money on travel insurance, tailor your policy to your specific needs and avoid unnecessary extras. You should also shop around to compare quotes from multiple insurers. Opting for an annual plan if you're a frequent traveler, checking existing coverages from other insurance policies or credit card benefits, and choosing a policy with a higher deductible can significantly lower your premiums. Always read the fine print to understand your coverage fully, ensuring you don't pay for redundant or irrelevant features.
Where are the cheapest places to buy travel insurance?
To find affordable travel insurance, consider using online comparison websites like SquareMouth or InsureMyTrip to see rates from various providers. Other ways to save include purchasing directly from insurance companies, exploring package deals from travel agencies or airlines, utilizing included coverage from credit card benefits, and checking for discounts through membership organizations such as AAA or AARP.
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