Last updated on 03/11/2024
Travel insurance is not one-size-fits-all, so the price and conditions of a plan will vary. However, it may be useful to understand pricing guidelines to plan your travel insurance purchase.
In general, you should expect a plan will cost anywhere from 4%-10% of your total pre-paid, nonrefundable trip cost. For example, if you purchased a trip with a total cost of $5,000, travel insurance policies available to you will likely range in price from $250-$500, depending on variables.
Factors of Travel Insurance Rates
The providers will use a few pieces of personal information, other than the cost of your trip, to calculate the cost of a plan:
- Age of the travelers
- Number of travelers
- Length of travel
- Type of coverage
The age of the travelers is considered one of the most important of the four factors. Typically, a traveler that is over the age of 65 can expect increased rates. If you are traveling with minors, you may be able to add them to the plan at no additional cost, or at a lower rate – depending on the travel insurance company.
The number of travelers and length of travel can often increase the rates of the plans. This is because, with more variables, there is more risk attached to the plan. For instance, if you are traveling overseas for 21 days, as opposed to only seven, you are opening yourself up to more medical risks and risk of travel interruption. These are both reasons to use your plan. The same can be said if you are traveling with four to five people, as opposed to just two.
The type of coverage you choose will also change the rate. A basic, no-frills comprehensive plan will naturally cost less than one that includes a myriad of optional benefits like Cancel for Any Reason or rental car collision coverage. Similarly, higher coverage limits for medical expenses or medical evacuation will increase the rate over a plan with lower amounts of coverage.
Some providers may also take other factors into account which is why the policy premium may differ from trip to trip.
The Right Travel Insurance Plan
The plan rate should not deter you from purchasing the coverage that you feel you need to fully protect your trip. InsureMyTrip has hundreds of plans for all different types of travelers. The kind of protection needed by a traveler who intends to hike the Himalayas, for example, is vastly different from that needed by a family taking a short cruise to the Bahamas.
It’s not only important to compare travel insurance rates, but also coverage. This will ensure you are finding the right travel insurance plan for your trip. It can be helpful to compare travel insurance plans that offer you similar levels of coverage and are appropriate for your needs. Don’t be swayed by a lower-priced plan with benefits that don’t suit you completely; or, likewise, high-priced plans that over insure your trip.
Disclaimer: The information contained in this article serves as a general overview of benefits and should only be used for informational purposes. Refer to your individual certificate of insurance for specific coverages, exclusions and benefits. When in doubt, please contact one of our licensed agents for additional assistance.
FAQs
In general, you should expect a plan will cost anywhere from 4%-10% of your total pre-paid, nonrefundable trip cost. For example, if you purchased a trip with a total cost of $5,000, travel insurance policies available to you will likely range in price from $250-$500, depending on variables.
What is the cost of travel insurance? ›
The average cost of travel insurance is about 3% to 5% of a trip's total value, according to quotes gathered by our research team across different travel insurance providers for various traveler profiles.
How much travel medical insurance is enough? ›
How much travel medical insurance do you need? Squaremouth, a travel insurance comparison site, recommends buying at least $50,000 in emergency medical coverage for international travel. For travelers going on a cruise or to a remote destination, the site recommends at least $100,000 in coverage.
Is travel insurance worth it for road trip? ›
Many drivers don't think of travel insurance for trips by road, but it's wise to have protection against travel-related financial losses. Whether you're in your own car or camper or have rented a vehicle, road trip travel insurance can cover a variety of travel-related incidents.
What does trip cost mean for travel insurance? ›
Trip cost includes the total non-refundable and pre-paid trip expenses that are purchased for a vacation. Examples of trip cost include airline tickets, lodging deposits, excursion deposits, etc.
What should I pay for travel insurance? ›
Travel insurance typically costs between 4 and 10% of the overall price tag for your trip. The cost can vary: Plans with higher limits and more optional coverage cost more. A plan with a CFAR benefit can cost up to 40% more.
Who is the best and cheapest travel insurance? ›
The 7 Best Cheap Travel Insurance Companies Worth The Cost
| Company | BBB Rating | Cheapest Plan |
|---|
| Travelex Compare Plans | A+ | Travel basic |
| Seven Corners Travel Insurance Compare Plans | A+ | Trip Protection Basic |
| Generali Global Assistance Compare Plans | A+ | Standard Plan |
| AIG Travel Guard Compare Plans | A+ | Essential |
3 more rowsEvery plan is different, but the coverage amounts and benefits may vary. Determine how much you really need. For example, SquareMouth recommends international travelers get around $50,000 in Emergency Medical coverage and $100,000 for cruises or travel to remote areas.
Does Medicare cover me overseas? ›
In most situations, Medicare won't pay for health care or supplies you get outside the U.S. The term “outside the U.S.” means anywhere other than the 50 states of the U.S., the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands.
Do I need additional medical insurance when traveling abroad? ›
Make sure you have a plan to get care overseas, in case you need it. Consider buying additional insurance that covers health care and emergency evacuation, especially if you will be traveling to remote areas. Enroll with the Department of State's Smart Traveler Enrollment ProgramExternal Link (STEP).
If you're wondering when you should buy travel insurance, the simple answer is as soon as possible. Ideally, you'll buy coverage no later than 15 days prior to your trip.
What does travel insurance not cover? ›
Most travel insurance policies won't pay out if you're negligent while under the influence of alcohol or drugs, and have an accident or have property stolen.
What are two disadvantages travel insurance? ›
It can also be expensive, difficult to file claims, and not always cover the things you thought it would — or should.
Does travel insurance really pay? ›
Travel insurance compensates you for money you lose due to unforeseen events before and during your trip. Just as importantly, it can pay for emergency medical care and evacuation during your trip.
Is trip insurance the same as travel insurance? ›
Trip insurance (also known as travel insurance) is primarily focused on the prepaid non-refundable trip cost that you may lose in case you can not go on your trip due to covered reasons. In other words, the primary focus is on trip cancellation coverage.
Does travel insurance get more expensive closer to the trip? ›
Unlike other aspects of your travel experience like airfares or hotel-room rates, the price of travel insurance doesn't increase the closer you get to your travel date. There's no financial penalty if you wait to buy travel insurance (except for those bonus coverages, of course).
When should I buy travel insurance? ›
In general, you can buy coverage any time before the date of your trip. That said, it's always best to buy coverage as soon as you make your reservations. The sooner you buy travel insurance, the sooner you'll be protected and the more benefits you may be eligible to receive.
Can you buy travel insurance after booking a flight? ›
You absolutely can buy travel insurance after booking your trip. However, it's always best to purchase insurance as early in the process as possible. If you procrastinate, you may miss out on certain benefits.
Does travel insurance cover 100%? ›
If all conditions are met, most of the policies will reimburse you 50% to 75% of your trip costs, unless otherwise noted.
