Last Updated: February 23, 2021April 18, 2024
The cost of travel insurance varies from traveler to the next, and depends on multiple key factors including your trip length, travelers ages, the type of coverage you choose, and the plan’s coverage limits.
Each travel insurance provider calculates premiums slightly differently to appeal to their target demographic. This is why you may see two travel insurance companies offering near identical policies at widely different price points.
The Average Cost of Travel Insurance in 2024
For the most part, you can expect to pay between 5-10% of their insured trip costs on a travel insurance policy. So for a $5,000 trip, for example, you may see premiums ranging from $250 to $500 for a comprehensive policy that includes cancellation, medical, delay, and baggage coverage.
If cancellation coverage isn’t important to you, you can opt for a medical-only plan. These plans may not offer as many benefits as a comprehensive plan, but can be purchased at a significantly lower price point.
Squaremouth helps hundreds of thousands of travelers compare and purchase travel insurance each year. Among those travelers, the average cost of travel insurance plans is $308.
See a further breakdown of travel insurance costs below:
| Policy Type | Cost |
| Comprehensive | $403 |
| Medical-Only | $97 |
Does Higher Premiums Mean Better Coverage?
No, not always. Just because a policy is priced higher does not necessarily mean that it offers better coverage. Oftentimes, you can find adequate travel insurance coverage at an affordable price by comparing policies from different providers.
We never want to see travelers overspend on travel insurance. If there are multiple policies available that meet your coverage needs, we recommend going with the least expensive option.
What Determines the Cost for Travel Insurance?
The premium varies by policy, depending on five primary factors: total trip cost, age of travelers, length of travel, the policy type, and total coverage amounts.
Other factors may have an impact for select policies, such as your state of residence, your destination, and any policy add-ons you may want to include as part of your coverage.
Total Trip Cost
In the context of travel insurance, your total trip costs refers to your prepaid, non-refundable trip expenses relating to a trip. In most cases, this will include expenses such as hotel accommodations, flight costs, pre-booked excursions, and tours.
If you want Trip Cancellation and Trip Interruption coverage, you will need to insure all or some of your trip costs when you buy travel insurance. How much you insure dictates how much reimbursem*nt you are eligible for in the event you need to cancel your trip.
The cost of your trip will usually impact your travel insurance premium, with more expensive trips resulting in higher premiums.
Age of Travelers
Each provider has a different target demographic, and will structure their premiums to attract customers in that age group. However, in general, travel insurance policies are more expensive for older travelers.
In addition to the age of travelers, the number of travelers on a policy can also impact its cost. Generally, the cost of travel insurance increases with each additional insured traveler.
Length of Travel
Travel insurance is designed to cover you from door-to-door, starting when you leave home and ending when you return. The longer your trip, the higher a policy’s premium. Most travel insurance companies allow a Maximum Trip Length of 90 days or less.
If you need to purchase travel insurance for a trip that exceeds 90 days, Squaremouth recommends considering an Annual travel insurance plan.
Policy Type
The cost of travel insurance can vary dramatically depending on what type of travel insurance policy you choose.
Comprehensive travel insurance policies are the most common type of plan, and provide coverage for the most common travel disruptions, such as cancellations, trip delays, medical emergencies, and personal belongings. As previously mentioned, this type of plan is often more expensive than medical-only plans that don’t offer as many benefits.
Purchasing an Annual travel insurance policy, which covers any number of trips taken within a 365 day period, will also impact your premium. These plans can be cost effective if you are a frequent traveler and take at least 2-3 trips per year.
Total Coverage Amounts
Coverage amounts refer to the maximum dollar amount a travel insurance provider will reimburse you under each benefit. The higher the coverage limit, the stronger level of travel protection the policy provides. The best travel insurance companies offer plans that provide strong coverage across all major benefits.
Coverage amounts included in a travel insurance policy can vary significantly from one plan to the next, especially the medical coverage. Policies with higher amounts of coverage are often more expensive.
Before you buy travel insurance, consider which benefits are most important to you and will provide the most peace of mind. Doing so will help you determine what coverage amounts make the most sense for your trip.
Optional Coverage That Will Directly Increase Your Policy’s Premium
Certain travel insurance benefits are considered add-ons or “optional upgrades,” and will result in a direct increase in the cost for travel insurance policies. Those benefits include Cancel For Any Reason, Pre-Existing Condition, Accidental Death and Dismemberment, and Rental Car Damage.
Cancel For Any Reason
Cancel For Any Reason partially refunds your trip payments if you cancel for a reason that is not specifically covered by your policy. This benefit is only available for up to 30 days after your initial trip booking, and will generally increase your policy’s premium by about 40-50%. In 2024, the average CFAR policy costs travelers $632.
Accidental Death and Dismemberment
Accidental Death and Dismemberment is the only travel insurance benefit that will provide a lump sum payment to travelers. There are three types of Accidental Death and Dismemberment protection, which include 24 Hour AD&D, Flight Only AD&D, and Common Carrier AD&D. This coverage will pay a predetermined amount in the event of loss of life or a limb during your trip.
Rental Car Damage
Coverage for Rental Car Damage is an optional add-on that many providers offer. This benefit can cover the cost of damage or theft of a rental vehicle during your trip.
Is Travel Insurance Worth It?
Travel insurance is absolutely worth the cost if you have concerns about your trip. Many travelers purchase insurance for the peace of mind that if something goes wrong before or during their trip, they’re covered.
The most common reason travelers get coverage for their trips is for international medical insurance. Since most primary health insurance providers don’t cover policyholders overseas, travel insurance can reduce the risk of paying hefty out-of-pocket medical expenses.
With that said, travel insurance is not a requirement for most destinations, and many travelers can utilize existing coverage they may already have through their travel credit cards. Most credit card travel insurance plans provide a wide-range of other travel disruptions, including travel delays, baggage delays, baggage loss, and emergency evacuations. With that said, few travel credit cards offer cardholders cover medical evacuations and emergencies.
To get the best price, Squaremouth recommends getting travel insurance quotes from multiple providers. As always with insurance, it’s recommended to pay attention to the fine print and be aware of any exclusions listed in the plan’s details before making a decision.
Downselling to Help You Save Money
Squaremouth understands that many travelers have the misconception that more expensive is better. However, the cost of a travel insurance policy does not dictate the quality.
Our core goal is making sure travelers don’t spend more than they need to on travel insurance. For that reason, whether on the phone or through our online resources, we always recommends that travelers look for the least expensive policy that offers the coverage they need.
