Pas Trusted News – How Much Does Travel Insurance Cost?

Key points

• Travel insurance costs an average of 5% to 6% of the cost of your trip. 
• Your travel destination and your age impact the cost of travel insurance. 
• Senior travelers need to budget extra for travel insurance as they pay a higher percentage of their trip cost — an average of 18% for 80-year-olds.

There are several factors that influence how much you’ll pay for travel insurance, from your age and travel destination to the cost of your trip and the coverages you choose. Our insurance experts analyzed rates from the best travel insurance companies, and we’ve used that data to break down the average cost of travel insurance for you.   

How much is travel insurance?

The average cost of travel insurance is 5% to 6% of your nonrefundable trip expenses. To insure a $1,000 trip, for instance, costs an average of $61 (6%). 

Average cost of travel insurance by trip cost 

Average cost of travel insurance by age

While the cost of your trip is a key factor in how much you’ll pay for travel insurance, your age can also impact your rate. This is particularly true for travelers over 60. The average cost of travel insurance for a 70-year-old increases to 11% of total trip cost, and 80-year-old travelers pay an average of 18% for a senior travel insurance policy. 

Average cost by number of travelers in your group

If you’re traveling with others, it’s typically cheaper to insure everyone in your group with a single travel insurance policy. Some plans even cover kids younger than 17 for free, as long as they’re traveling with their parents on the same itinerary. 

In our analysis of travel insurance rates, we found that a family of four taking a 14-day trip from California to Mexico valued at $5,000 only pays about $29 more than a solo traveler buying travel insurance for the same trip. A couple, both age 40, will pay an average of $17 more than a single traveler of the same age. 

Rates vary by travel insurance plan

One of the biggest factors to influence the cost of travel insurance is the travel insurance plan you select. The best travel insurance plans bundle several types of insurance, including coverage for trip cancellation, trip delay, trip interruption, travel medical, emergency medical evacuation and baggage loss and delay. The more comprehensive the plan, the more you’ll pay for travel insurance. 

The coverage limits of your policy will also affect its cost. The limits dictate how much you’ll be reimbursed if you use your insurance. All of the 5-star plans in our best travel insurance rating offer medical reimbursement limits of $1 million. The higher the reimbursement limit, the more expensive your coverage will be. 

Sample rates for different travel insurance plans

What travel insurance covers

“Travel insurance provides coverage for prepaid, nonrefundable trip expenses — up to the limits of the policy — should a trip be canceled or interrupted for a covered reason,” said Daniel Durazo, director of external communications at Allianz Partners USA. 

The trip cancellation insurance part of your travel insurance can reimburse up to 100% for lost trip deposits, such as airline tickets, hotel rooms, rental cars, tours and cruises, if you cancel your trip for a reason listed in your policy.

“Examples of acceptable reasons to cancel a trip include illness or injury for the traveler, a close family member or a traveling companion,” said Durazo. “Other reasons may include your travel supplier stops offering services for 24 hours due to a natural disaster, severe weather or a strike, your home or destination becomes uninhabitable, or you or a travel companion are laid off after you purchase your policy.”

Once you start your trip, travel insurance continues to offer financial protection, said Durazo. “Post-departure benefits can help cover expenses like lost bags and travel delays and most importantly, can include emergency medical coverage and emergency medical transportation.” 

If you do become ill or injured while traveling, travel insurance can cover your medical costs including doctors’ fees and hospital costs that may not be covered by your health insurance. “Domestic health care plans are usually not accepted outside the U.S.,” Durazo said. “So it’s especially important to get travel insurance with medical coverage and emergency medical transportation when traveling internationally.” 

Even if you’re not traveling out of the country, travel insurance with medical coverage can be a good idea, Durazo said. “As many Americans now have high deductible health insurance plans, trips to urgent care or the ER can be expensive but could be covered by travel insurance while traveling.” 

Cost of adding “cancel for any reason” coverage

If you want to be able to cancel your trip for any reason — not just those listed in your policy — consider buying a travel insurance plan that offers “cancel for any reason” (CFAR) coverage.

“In 2023, the travel industry has faced a number of challenges including a rise in inclement weather, staffing shortages and strikes,” said Rajeev Shrivastava, CEO of VisitorsCoverage. “Consequently, we’re seeing an increase of canceled trips, disrupted flights and stranded travelers.” 

“To prepare for these uncertainties,” said Shrivastava, “travelers should consider choosing flexible insurance coverage options like ‘cancel for any reason’ and ‘interruption for any reason,’ which protect trip investments in case of cancellations or disruptions.”

Based on our analysis of 16 travel insurance policies, adding CFAR coverage to a travel insurance policy will increase your cost by about 50%. 

“Interruption for any reason” (IFAR) coverage isn’t as readily available as an upgrade, but it typically adds only 3% to 10% to the cost of your travel insurance.

Methodology

Using data from Squaremouth, a travel insurance comparison website, our insurance experts analyzed rates for 23 travel insurance plans. The average rates were determined by comparing quotes for trips with a variety of costs, traveler ages, traveler groups and travel plan benefits.