How Much Does Travel Insurance Cost? Price Guide & Tips

The 8 Most Influential Factors That Affect The Price Of Your Policy

1. Your Age

Next to trip price, age is probably the main factor that influences the cost of insurance. Insurance providers rely on actuarial tables showing that older people tend to make more medical claims than younger ones. So, as a result, older people have to pay more.

Actual scenario:

If you are going for a $4, 000, 14-day European trip and want $100, 000 medical coverage:

•  A 25-year-old person will have to pay around: $160
•  A 40-year-old person will have to pay around: $220
•  A 55-year-old person will have to pay around: $380
•  A 70-year-old person will have to pay around: $650

The most remarkable increase happens after the age of 65. Some insurance companies raise the rates by 50-100% for the aged persons, and it is a real challenge to find financially reasonable packages for the ones above 75.

2. Trip Length

A trip that lasts a longer time will generally expose one to more opportunities for mishaps. For that reason, insurance premium rates go up along with the length of the trip.

More or less typical price breakdown:

•  1-7 days: No extra charge
•  8-14 days: +20-30%
•  15-30 days: +40-60%
•  31-60 days: +80-120%
•  60+ days: Must be arranged through a special long-term policy

Example from practice:

A 35-year-old planning to explore Southeast Asia with a $3, 000 leisure budget .

•  1 week: ~$140
•  2 weeks: ~$175
•  3 weeks: ~$215
•  4 weeks: ~$285

From a pure trip insurance standpoint, it turns out that the longer the trip, the cheaper it is to cover every day in terms of rate.

3. Destination

Your travel destination greatly affects the price because:

•  Healthcare costs differ greatly from country to country
•  Political stability level adjusts the risk factor
•  Quality of infrastructure and its contribution to costs of medical evacuation

List of high-cost travel destinations (expensive insurance premiums):

•  United States (combined with the highest medical costs worldwide)
•  Switzerland, Norway, Iceland (highly priced medical care)
•  Japan (very costly)
•  Australia

List of medium-cost travel destinations:

•  Western Europe
•  Canada
•  Singapore
•  South Korea

Travel destinations at the bottom of the scale in terms of cost:

•  Southeast Asia
•  Eastern Europe
•  Central/South America
•  Most of Africa

Example in the flesh-

The same traveler, the same trip duration, only different travel destinations:

•  Thailand: $145
•  France: $180
•  USA: $265

Thus, traveling to the U.S. is 80% more expensive than Thailand due to the absurdly high costs of medical care in the U.S.

4. Coverage Level and Type

Insurance policies are available in different levels and types, which greatly influence the price you will pay.

Medical-only coverage

Covers only medical emergencies and evacuation, not trip cancellation, baggage, or other benefits.

•  Estimated price: $30-$80 for an international trip of two weeks
•  Suitable for: Travellers on a low budget with very few non-refundable expenses

Comprehensive coverage:

This one has all the bells and whistles: medical, trip cancellation/interruption, baggage, delays, and other benefits.

•  Estimated price: $150-$400 for a two-week trip (depends on age and destination)
•  Suitable for: Most travelers who have made substantial advance payments

Premium/luxury coverage:

Higher coverage with more extensive benefits, exclusive services, and priority assistance.

•  Estimated price: 50-100% above a standard comprehensive
•  Suitable for: Individuals who travel in luxury or those who have high-cost trips

Real-world comparison:

40-year-old, $4, 000 trip to Europe, 2 weeks .

•  Medical-only: $75
•  Comprehensive: $240
•  Premium comprehensive: $420

5. Coverage Limits

Even within the same category of coverage, higher coverage limits will raise premiums.

Medical coverage limits

•  $50, 000 coverage: Base premium
•  $100, 000 coverage: +10-15%
•  $250, 000 coverage: +20-30%
•  $500, 000+ coverage: +35-50%

Example

A single vacation, only varying medical coverage limit:

•  $50, 000 medical: $180
•  $100, 000 medical: $205
•  $250, 000 medical: $235

Usually, the cost increase for higher coverage is relatively low when compared to the added protection.

6. Optional Add-Ons

You can choose to include a few extras to your travel insurance in case something unexpected happens:

Cancel For Any Reason (CFAR)

•  Increases the price of your basic policy by 40-60%
•  Gives you the freedom to change your plans
•  The policy must be bought 14-21 days after the first payment

Adventure sports coverage

•  Additional charge from $25 to over $100 based on the type of activity
•  Necessary for skiing, scuba diving, mountaineering, etc.

Pre-existing condition waiver

•  Most of the time this coverage comes with the insurance if you buy it during the waiver period
•  Separate purchase can cost you an additional 10-20%

Rental car coverage

•  Will cost you about $15-$40 depending on the length of the trip
•  You might already have this courtesy of your credit card

An instance from the industry

Standard all-risk insurance plan: $220

Adding different options:

•  +CFAR: $320 (+$100)
•  +Adventure coverage: $255 (+$35)
•  +Rental car: $240 (+$20)
•  The three combined: $375 (+$155)

7. Trip Cost

The amount you get insured for trip cancellation depends on your total prepaid, non-refundable trip costs. The higher these costs are, the more you pay in premiums.

A case in point:

A 40-year-old planning a 2-week trip to Europe with comprehensive insurance.

•  $2, 000 trip: $165
•  $4, 000 trip: $240
•  $6, 000 trip: $310
•  $10, 000 trip: $475

There is not a perfect linear correlation between the two, however, it is quite evident that the price of the insurance is proportional to the value of the trip.

8. Pre-Existing Conditions

Caring for medical needs of pre-existing conditions through insurance entail considerable increase in cost of coverage. Sometimes, these prices can go up significantly.

Ways:

1. Get coverage before expiry of waiver period : (14-21 days from the date of initial deposit): Mostly cost negligible or no cost at all
2. Get special pre-existing condition insurance : May increase premium by 25-50%
3. Skip pre-existing condition coverage : Costs less but it is risky if there is significant health condition

Examples of Costs in Actual

Below are our actual premium examples for different traveler profiles:

Budget Backpacker

Trip details:

•  28-year-old solo traveler
•  3 weeks in Southeast Asia
•  $2, 000 total trip cost
•  Desired coverage medically only
•  No pre-existing conditions

Insurance cost: $55-$85

Rationale: Young, traveling to a low-cost country, limited coverage needs, trip duration short to medium

Family Vacation

Trip details

•  2 adults (38, 40 years old) + 2 kids (8, 11)
•  10-day cruise in the Caribbean
•  $8, 000 total trip cost
•  Covering everything
•  No pre-existing conditions

Insurance cost: $420-$550

Rationale: Average ages, average cost of destination, value of trip necessitating coverage of cancellation, family rate .

Luxury Honeymoon

Trip details

•  2 adults (29, 31 years old)
•  2-week trip in Bora Bora
•  $15, 000 total trip cost
•  Top-of-the-line comprehensive coverage
•  CFAR added

Insurance cost:  $950-$1, 200

Rationale: high cost of trip, use of luxury accommodations, premium coverage with the flexibility of CFAR .

Senior Adventure Travel

Trip specifics

•  Couple aged 68
•  3 weeks European river cruise and land tour
•  $12, 000 overall trip cost
•  Thorough cover
•  Waivers for pre-existing conditions

Insurance fee: $1, 400-$1, 900

Reason: Age is the major factor behind high premium, a trip of moderate duration and high cost, issues related to pre-existing conditions

Digital Nomad

Trip particulars

•  32-year-old
•  6 months traveling multiple countries
•  No set itinerary
•  Yearly/long-term policy
•  Mainly covers medical with very little coverage for trip cancellation

Insurance fee: $500-$800 for 6 months (~$85-$135/month)

Idea: Youthful age, cover mainly for medical expenses, long-term specialized policy, flexible coverage structure

Annual vs. Single-Trip Policies

When you travel a few times a year, annually policies can be really cheaper.

When will annual policies be right for you?

You travel 2+ times per year and the length of each trip is less than the policy limit (usually 30-45 days per trip).

Price comparison:

40-year-old traveling three 2-week periods yearly .

Single-trip policies:

•  Europe trip: $220
•  Caribbean trip: $190
•  Asia trip: $205
•  Total: $615

Annual multi-trip policy:

•  Price: $350-$450
•  Savings: $165-$265

Annual policies downside:

•  Maximum trip duration (usually 30-45 days)
•  All trips should start from your home country
•  Usually, they are not for long-term travel or moving abroad

1. Purchase Within the Waiver Window

Making a purchase between 14-21 days from your initial trip deposit .

•  Gives you the opportunity to access pre-existing condition waivers (without additional charges)
•  Offers the greatest trip cancellation protection level
•  Occasionally you can receive extra perks as well

Savings: Could be $50-$200+ if you suffer from pre-existing conditions

2. Raise Your Deductible

Similar to car insurance, going for a larger deductible will reduce your premium.

Common choices:

•  $0 deductible: Base premium
•  $250 deductible: Save 10-15%
•  $500 deductible: Save 15-25%

Illustration:

• Basic coverage: $240
• With $250 deductible: $210 (saves $30)
• With $500 deductible: $190 (saves $50)

Note: Only pick deductibles that you will be able to pay without stress in case you file a claim.

3. Shop Around Different Providers

For the same coverage, prices can differ radically between companies.

How to compare:

Utilize comparison sites such as:

• - InsureMyTrip
• - Squaremouth
• - Travel Insurance Review

Get at least 4-5 quotes and compare:

•  Policy coverage limits
•  Policy exclusions
•  Customer ratings
•  Reputation for claims handling

Possible amount of savings:  20-40% between the highest and lowest quote for similar coverage

4. Skip unnecessary add-ons

Critically weigh options for more coverage:

Don't take rental car coverage if :

•  Your credit card includes this coverage
•  You don't plan on renting a car

Don't take CFAR if :

•  You are sure about your travel plans
•  You don't have the opportunity to buy during the stipulated time
•  You don't consider 50% price increase for flexibility

Don't take baggage coverage if :

•  You are traveling with very few items of value
•  Your homeowner's/renter's policy covers theft away from home

Possible savings:  $50-$150 per trip

5. Think about medical-only coverage if these are the trips

If you don't have much investment in non-refundable costs, then medical-only coverage becomes a great means of protecting yourself at a small fraction of the price of comprehensive coverage.

Example

Budget trip but flexible :

•  Comprehensive: $215
•  Medical-only: $75
•  Savings: $140

6. Use Credit Card Protection When Possible (With Caution)

Several high-end credit cards offer travel insurance as part of their perks.

Typical card benefits :

•  Trip cancellation/interruption
•  Baggage delay
•  Travel accident insurance
•  Partial medical coverage

Disadvantages :

•  Most of the time, you need to charge the whole trip to that card
•  Insurance limits generally lower than specialized policies
•  Medical coverage is often quite limited
•  Many situations covered by standalone policies are excluded

Plan :

Check what your credit card offers, then buy a direct policy to cover the areas where your card falls short (usually just medical and evacuation).

Illustration:

Your credit card offers trip cancellation coverage up to $10, 000 but no medical coverage.

•  Regular full-coverage policy: $280
•  Option to buy just medical coverage to supplement your card: $85
•  You save: $195

7. Family Group Coverage

Sometimes, family rates offered by insurers can be even more advantageous than purchasing separate individual policies.

Example:

Family of 4, 2 adults and 2 children, $6, 000 trip:

•  Individual plans: $450 altogether
•  Family plan: $380
•  Difference: $70

When Cheap Insurance Ends Up Costing You

Steer clear of insurance policies that promise an unbelievable deal, they usually do.

Warning signs:

1.  Extremely low premiums in comparison to cost of trip (less than 3%)
2.  Very low coverage limits ($10, 000 medical for international travel)
3.  Long lists of exclusions which makes it almost impossible to claim
4.  Unrated or poorly reviewed companies with claims management issue
5.  Policies which are vague about coverage limits

I have come across policies advertised at $49 for a $5, 000 international trip. Fine print reading uncovered:

1.  Medical coverage $15, 000 only (not enough)
2.  No evacuation coverage
3.  Trip cancellation only for death or hospitalization (most reasons excluded)
4.  Over $50, 000 worth of complaints about denied claims

This "bargain" policy would expose you to serious financial loss in the event of an emergency.

Best course of action: Regulate your focus on obtaining sufficient coverage at reasonable prices rather than on the very cheapest price.

How Much Should You Reasonably Pay?

Below is a rough estimate of the prices for good travel insurance:

Very short international trip (1 week):

•  Young traveler: $50-$120
•  Middle-aged traveler: $90-$180
•  Senior traveler: $180-$350

Short international trip (2 weeks):

•  Young traveler: $80-$160
•  Middle-aged traveler: $150-$280
•  Senior traveler: $300-$600

Long international trip (1 month):

•  Young traveler: $150-$280
•  Middle-aged traveler: $250-$450
•  Senior traveler: $500-$950

If the quotes are way below the ranges above, make sure to check the limits and exclusions of the coverage.

If they are significantly above the ranges, you may be getting premium/leisure coverage or it is time to shop for better rates.

Is Travel Insurance Really a Cost Effective Decision?

One major factor whether travel insurance could be a good rationale depends on several things to your individual situation but by sheer numbers, it's about math:

A scenario of travelling without insurance:

•  medical emergency: $5, 000-$50, 000+
•  medical evacuation: $50, 000-$250, 000
•  trip cancellation: $2, 000-$10, 000+
•  lost baggage: $500-$3, 000

A scenario of travelling with insurance:

•  cost of premium: $150-$500 (normally)
•  amount of money paid out of one's own pocket if claims get filed: only the deductible ($0-$500).

Potentially, without insurance, you could be exposed financially to unprecedentedly huge amounts most of the time exceeding the amount paid for insurance by even very cautious travelers.

As Jake (from the opening story) was telling that after his $12, 000 claim was accepted: "Truly, I won't be without travel insurance again. Best $247 I ever spent."

Key takeaway: Be budget smart, not cheap

The cost of travel insurance is highly variable and depends on multiple factors. Still, an average traveler can expect to set aside 5-7% of his/her vacation expenditure for a well-rounded coverage.

Think about:

•  Getting sufficient coverage limits (particularly for medical and evacuation)
•  Matching coverage type to trip needs
•  Getting best deals through price comparison
•  Dealing only with reliable insurers who are known for their good handling of claims

The idea is not to pick the/isolate/only the cheapest option, but to go for the/in fact the best value option that provides good enough protection.

To help you decide exactly which type of insurance you need, have a look at our detailed travel insurance guide . And if you still have doubts on what travel insurance covers, this comprehensive explanation will clear up all your questions.