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- Travel insurance covers the non-refundable parts of your trip and any medical expenses from an injury.
- The average cost of travel insurance is $248 per trip.
- Policy type, trip cost, destination, age, and the number of travels are factors that impact your premiums.
- See Insider’s list of the best travel insurance »
Traveling costs can add up quickly, but unanticipated mishaps can be even more costly. Whether you incur a sudden illness, miss a connection, or lose your luggage, travel insurance provides financial protection if things don’t go accordingly.
“Not only is most standard travel insurance reasonably priced, but it’s also well worth it even for seemingly minor trips,” says Jiten Puri, CEO at PolicyAdvisor. “Even just one unexpected event when traveling can leave you out of pocket for hundreds of dollars.”
How much is travel insurance?
You can expect to pay 5% to 10% of your total trip cost for a comprehensive travel insurance policy with trip cancellation coverage, according to Squaremouth, a travel insurance comparison site. Squaremouth also found that travelers spent an average of $295 on travel insurance for a 16-day trip in the past year. However, the cost of your travel insurance will vary based on multiple factors.
Average cost of travel insurance by destination
The table below illustrates that international trips cost slightly more than domestic trips. Hence, you can expect to pay more in premiums if you travel abroad. Regardless, travel insurance is important whether you’re vacationing in the US or in another country.
“Anyone traveling domestically or internationally will benefit from travel insurance as it can cover unexpected events resulting in medical emergencies, cancellations or interruptions – all of which are important considering the current airline and airport staffing shortage happening worldwide,” Jeff Rolander, VP of claims at Faye Travel Insurance.
As you can see in the table below, domestic travel doesn’t always equal lower travel insurance costs. For example, trips to Mexico cost less to insure than trips in the United States.
Average cost of travel insurance by age
You can generally expect to pay more for travel insurance the older you get.
What determines the cost of travel insurance?
If you’re planning your next getaway and are wondering if travel insurance is worth it, these factors will influence how much you’ll pay.
- Trip cost: The cost of your trip is a significant factor in determining the cost of travel insurance. Generally, the more expensive your trip is, the more coverage you’ll need.
- Destination: If you plan to visit a country with political instability, common occurrences of natural disasters, and a high crime rate, you usually have to pay more to insure your trip.
- Length of trip: Longer trips increase the likelihood of injury, illness, or even death, so insurers take this risk into account and price accordingly. Additionally, the length of your trip is typically tied to your trip interruption coverage. So, the longer you travel, the higher your trip interruption coverage limits will be.
- Age of travelers: The older you are, the higher the chance of undergoing a medical condition that may need attention during the trip. Insurers factor in the increased likelihood of a trip interruption or a need to tap into medical coverage in your premiums.
- Type of coverage: The more comprehensive your travel insurance coverage is, the more expensive it will be. For instance, including trip interruption, cancellation, or riders to your policy could increase your policy’s cost.
- Deductible: Choosing a higher deductible means lower premiums and vice versa.
How to save money on travel insurance
Travel insurance is a financial safety net for when your trip goes awry, but you may be reluctant to spend a whole lot of money on it. Fortunately, you can still save money on coverage by following these steps.
- Buy your policy early: Give yourself ample time before your trip to shop around for coverage at the best price.
- Avoid over-insuring: If you want to lower your travel insurance cost, avoid paying for more coverage than you need. “During the purchase process you’re asked to input your total estimated trip cost. This should only be the sum of your prepaid trip costs, like hotels, flights and activities you’ve already paid for in advance,” says Rolander.
- Choose a higher deductible: Selecting a higher deductible can help lower your policy’s cost upfront. Just ensure you can afford to pay the deductible if you need to tap your coverage during your trip.
- Shop around: As with any insurance policy, comparing quotes can help you find the best rates with the coverage you need. “Different providers can often have different rates, and may even have promotions going on, so travelers can find the best deal for the coverage they need,” says Puri.
- Consider annual policies: Purchasing an annual policy may be more cost-effective than buying individual policies for each trip if you travel frequently.
Quick tip: Check out our guide on the best cheap travel insurance companies this year to jumpstart your search.