Planning a trip involves budgeting for various expenses, and travel insurance should be one of them. Understanding How Much Travel Insurance Cost is crucial for making informed decisions and protecting your investment. This guide breaks down the average costs, factors influencing premiums, and whether it’s a worthwhile investment for your next adventure.
According to a recent analysis, the average cost of travel insurance typically ranges from 4% to 6% of your total trip expenses. For instance, insuring a $5,000 trip might cost around $200 on average. However, the actual cost can vary significantly depending on several factors.
Average Travel Insurance Cost Based on Trip Cost
The overall cost of your trip significantly impacts the price of travel insurance. Insuring a more expensive trip naturally leads to higher potential claim payouts, which is reflected in the insurance premium.
| Trip Cost | Average Travel Insurance Cost | Percentage of Trip Cost |
|---|---|---|
| $1,000 | $58 | 6% |
| $2,500 | $108 | 4% |
| $5,000 | $200 | 4% |
| $10,000 | $438 | 4% |
| $20,000 | $963 | 5% |
| $30,000 | $1,343 | 4% |
| $50,000 | $2,168 | 4% |
These figures represent average costs, and the actual price can vary based on the specific policy and provider.
The Impact of Age on Travel Insurance Premiums
Age is a key factor that affects travel insurance costs, particularly for travelers aged 60 and older. This is because older travelers are generally perceived as having a higher risk of medical claims.
| Age of Traveler | Average Travel Insurance Cost | Percentage of Trip Cost | Difference from Age 20 |
|---|---|---|---|
| 20 | $199 | 4% | – |
| 30 | $200 | 4% | $2 |
| 40 | $257 | 5% | $58 |
| 50 | $268 | 5% | $69 |
| 60 | $362 | 7% | $164 |
| 70 | $508 | 10% | $309 |
| 80 | $826 | 17% | $628 |
As you can see, the average cost for an 80-year-old can be significantly higher than for a younger traveler. If you’re a senior, factor in an additional 7% to 17% of your trip cost for travel insurance.
How the Number of Travelers Affects Insurance Costs
The number of individuals covered under a single policy also influences the overall cost. While adding more travelers increases the premium, the rise isn’t always substantial.
| Traveler Type | Average Travel Insurance Cost | Difference from Single Adult |
|---|---|---|
| Single Adult | $257 | – |
| Two Adults | $280 | $23 |
| Two Adults and Two Children | $304 | $47 |
The incremental cost per person decreases as more travelers are added to the policy.
Travel Insurance Costs by Policy Type
The level of coverage provided by a travel insurance policy significantly affects its cost. Comprehensive policies with generous benefits will naturally be more expensive than basic plans.
Here’s a comparison of different policies and their costs for a $5,000 trip:
| Company | Policy Name | Cost |
|---|---|---|
| Berkshire Hathaway Travel Protection | ExactCare | $131 |
| Berkshire Hathaway Travel Protection | LuxuryCare | $233 |
| Aegis (Previously GoReady) | Pandemic Plus | $174 |
| HTH Travel Insurance | TripProtector Classic | $169 |
| HTH Travel Insurance | TripProtector Preferred | $228 |
| IMG | Travel LX Basic | $292 |
| IMG | Travel SE | $169 |
| John Hancock Travel Insurance Agency | Bronze | $173 |
| John Hancock Travel Insurance Agency | Gold | $274 |
| John Hancock Travel Insurance Agency | Silver | $194 |
| Tin Leg | Adventure | $170 |
| Tin Leg | Gold | $191 |
| Tin Leg | Luxury | $144 |
| Travel Insured | Worldwide Trip Protector | $246 |
| Travelex | Travel Basic | $154 |
| Travelex | Travel Select | $208 |
| Trawick International | Safe Travels Voyager | $222 |
| USI Affinity | Diamond | $238 |
| USI Affinity | Ruby | $195 |
The Cost of “Cancel For Any Reason” (CFAR) Coverage
“Cancel For Any Reason” (CFAR) coverage allows you to cancel your trip for any reason and receive partial reimbursement. This add-on typically increases the cost of a travel insurance plan by around 50%.
| Travel Insurance Plan | Cost Without CFAR | Cost With CFAR | Difference | Percentage Increase |
|---|---|---|---|---|
| John Hancock Insurance Bronze | $173 | $259 | $87 | 50% |
| GoReady Pandemic Plus | $174 | $261 | $87 | 50% |
| Tin Leg Gold | $191 | $286 | $96 | 50% |
| John Hancock Insurance Silver | $194 | $291 | $97 | 50% |
| USI Affinity Ruby | $195 | $292 | $98 | 50% |
| Travelex Travel Select | $208 | $291 | $83 | 40% |
| Tin Leg Luxury | $144 | $201 | $57 | 40% |
| HTH Travel TripProtector Preferred | $227 | $341 | $114 | 50% |
| USI Affinity Diamond | $238 | $368 | $131 | 55% |
| Travel Insured Worldwide Trip Protector | $246 | $354 | $108 | 44% |
| Tin Leg Adventure | $170 | $228 | $59 | 34% |
| John Hancock Insurance Gold | $274 | $411 | $137 | 50% |
| Berkshire Hathaway LuxuryCare | $233 | $320 | $87 | 37% |
Deciding whether CFAR is worth it depends on your individual circumstances and risk tolerance.
Other Factors Affecting Travel Insurance Premiums
Besides trip cost, age, and number of travelers, other factors can influence how much travel insurance cost:
- Trip Length: Longer trips generally cost more to insure.
- Amount of Coverage: Higher coverage limits and additional benefits will increase the premium.
Is Travel Insurance a Worthwhile Investment?
Travel insurance is a worthwhile investment if you cannot afford to lose the money you’ve invested in non-refundable trip expenses should you need to cancel or cut your trip short.
Furthermore, consider that your domestic health insurance may offer limited or no coverage abroad. Travel insurance can cover medical expenses incurred during your trip.
Frequently Asked Questions
How much should I expect to pay for travel insurance?
Expect to pay approximately 4% to 6% of your total trip cost for a travel insurance plan.
Does travel insurance cover all my costs?
Travel insurance reimburses you for prepaid, non-refundable trip costs, not for expenses that are refundable.
Which company offers the most affordable travel insurance?
Travel Insured International and WorldTrips are known for offering low-cost travel insurance plans.
By understanding how much travel insurance cost and the factors that influence it, you can make an informed decision and protect your travel investment.
