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What is the Average Cost of Travel Insurance?

The Average Cost of Travel Insurance

Making plans and booking a vacation is always exciting. There’s plenty to think about, from comfortable hotels to fun tours and excursions. While travel insurance isn’t quite as titillating, it’s a key element to think about when gearing up for a big tri

If you’re embarking on a small, less expensive domestic trip, travel insurance may not be necessary. But for those bigger trips abroad, having travel insurance will give you peace of mind by providing a safety net when you need it.

So, what’s the average cost these days of travel insurance, anyway? Let’s take a look.

What is Travel Insurance?

Before diving into costs, what is travel insurance and how does it work?

In short, travel insurance gives customers financial protection when traveling. This can be something small, like lost baggage during a flight, or something bigger, like a medical emergency. Traveling will always come with some uncertainty, so it’s wise to be prepared for any unexpected situations that may arise.

Unlike car insurance, which is mandatory, travel insurance is voluntary. There are also a variety of types, including trip cancellation, medical insurance, baggage/personal items loss, and more.

So, let’s say you’re no longer able to travel due to an unforeseen event, like a death in the family, trip cancellation insurance can reimburse you for all pre-paid, non-refundable expenses you’ve made.

Factors Involved When Calculating Travel Insurance

Travel insurance isn’t just a flat fee that everyone pays. The cost will vary—typically 4%-8% of the trip’s cost—and depends on several factors.

Range of Travel Insurance Costs

As you can expect, basic travel insurance is the cheapest and will cover less than middle-tier and comprehensive coverage. Here are the average costs of each tier for plans found on TravelInsurance.com:

Basic Coverage: $103

Basic coverage will typically cover just a few things, like trip cancellation and baggage loss.

Mid-Range Coverage: $124

Mid-range coverage will often include basic coverage plus health insurance and theft.

Comprehensive Coverage: $162

Comprehensive coverage offers the most benefits and the best protection. It covers basic and mid-range protection plus 24-hour traveler assistance, accidental death, and more.

5 Tips When Buying Travel Insurance

If you’re shopping around for travel insurance, here are a few tips to keep top of mind:

1. Always start by asking yourself what the financial risk is when traveling. Are you going somewhere dangerous? Are you doing anything that comes with a higher probability of getting hurt? If something were to happen, can you bear the costs alone?

2. Take a look at what coverage you already have. Remember, some credit cards offer some form of travel insurance. Also, check what coverage your health care provider offers when traveling.

3. Examine how much of your trip is refundable and how much isn’t. When booking a hotel or excursion, check to see if they offer a flexible cancellation policy.

4. Always compare prices to find the best rates. Choose the best travel insurance plan package for you and get quotes from multiple companies online.

5. Once you’ve tapered down your search to just a couple of insurance companies, be sure to fully review the policy details to see what limitations or exclusions there are. You might find that the cheaper plan doesn’t cover as much as you’d like or excludes coverage you want.

Average Cost of Travel Insurance by Company and Age

Below are the average costs of travel for multiple insurance companies based on the following scenario: A U.S citizen living in California traveling to France for one week in mid-June with the trip costing $5,000. We’ve also compared quotes based on different ages with this same scenario.

You can get a quick quote yourself from multiple companies by using our Compare and Buy Online tool.

These policies range from basic to top-of-the-line full coverage, and only includes companies in our network.

Travel Insurance CompanyAverage Plan Cost 30-Year-OldAverage Plan Cost 50-Year-OldAverage Plan Cost 70-Year-Old

Final Thoughts

According to the US Travel Insurance Alliance, Americans are spending $4 billion annually on travel insurance, and it’s no wonder why. Booking the right policy for your vacation will give you peace of mind and allow you to focus on your trip, stress-free.

The Basics of Travel Insurance

Coverage Types

Compare and Buy Travel Insurance

Compare and buy travel insurance plans from top rated insurers

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