Travel insurance costs can vary widely, depending on your insurer, the coverages you choose, the limits of your policy, and other factors.
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you → vary → policy
Generally speaking, though, the average travel insurance plan costs about 6% of a typical trip's total cost — or about $600 for a $10,000 trip, according to insurance marketplace SquareMouth.
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plan → speak → SquareMouth
Those costs have been rising, too.
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costs → rise → ?
Over the last year, the average travel insurance price has increased almost 8%, according to SquareMouth.
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price → increase → SquareMouth
This makes it more important than usual to shop around, compare your options, and understand the fine print.
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Below, we'll outline what you need to know about travel insurance costs, how policies and coverages are priced, and how to keep your plan costs down if you buy one.
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How much does travel insurance cost?
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insurance → cost → much
Squaremouth's data shows an average cost of just over $450 for travel insurance over the last year.
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data → show → year
More broadly, the U.S. Travel Insurance Association (USTIA) says you can expect a policy to cost between 4% and 8% of your total trip cost — so about $40 to $80 for every $1,000 of trip expenses.
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policy → say → expenses
That noted, ultimately the cost depends on a number of factors that are specific to you, your trips and the coverages you select.
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Here's what you can generally expect to pay for different coverages, according to Squaremouth's latest data:
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As you can see, medical-only and single-trip policies can be more affordable than comprehensive and annual ones, which cover all your trips across a 12-month period.
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What affects the cost of travel insurance?
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Many factors influence the cost of travel insurance.
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Some of the critical ones include the length of the trip, total trip cost and age of the policyholder.
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Since travel insurance will cover many of your biggest costs (if the trip is canceled), the total cost of your trip is a big piece of the pricing puzzle.
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Travel insurance for a low-cost trip (say, a $5,000 trip to a Hawaii beach) will cost much less than insurance for a high-cost one (maybe a $30,000 trip to the Maldives), simply due to the reduced reimbursement costs.
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insurance → cost → costs
Your age speaks to how at risk you are for needing medical care on your trip, and the older you are, the higher that risk is.
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risk → speak → trip
As a result, travel insurance tends to be more expensive for older travelers (particularly those over 65), and more affordable for younger ones.
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insurance → tend → ones
Trip length: The longer your trip is, the greater the chance of something going wrong.
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something → go → ?
Because of this, you will usually pay more for insurance on extended trips than you would for shorter-term stays.
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you → pay → stays
Some travel insurers also have maximum trip lengths, so be sure to read the fine print before purchasing any coverage.
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The coverages you select can play a role, too, with more comprehensive coverages or add-ons costing more than medical-only coverage.
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coverages → select → coverage
Basic medical-only and one-trip policies are generally the most affordable options when it comes to travel insurance.
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These plans might be good if you want to be sure you're covered in case of a catastrophic injury or medical emergency, you're taking a low-cost, short-term trip, and you have the funds to cover any losses you might incur if your trip is canceled or delayed or your baggage is lost.
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baggage → want → losses
However, if you're going on an extended or particularly long trip, or there's a good chance some portion of your travel may be interrupted, delayed or canceled, you may want to invest in a more comprehensive policy.
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you → go → policy
Buying more comprehensive insurance may also be smart if you're traveling to an area where evacuation may not be easy, you're taking part in riskier activities while traveling (scuba diving, bungee jumping, etc.), or you have a pre-existing health condition.
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you → buy → condition
How do you lower the cost of travel insurance?
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you → lower → insurance
Travel insurance costs aren't set in stone, so compare several options before choosing where to get your policy.
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You can also check with your credit card issuers and home or renters insurance company to see if any existing coverages exist, as this could reduce or eliminate the need for a separate travel insurance policy.
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this → check → policy
If you're taking multiple trips in the coming year, you may be able to save cash by getting an annual plan rather than a single-trip one.
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you → take → plan
Ultimately, you'll want to consider the overall risk and cost of your trip, as well as your financial capabilities to cover any losses or medical bills that could result from it.
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that → want → it
If those far outweigh the premium for travel insurance, then it's likely a good investment.
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The Aporia
