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Considering Travel Insurance?
See How Much It Costs To Protect Your Next Trip
Key Takeaways
The average cost of travel insurance is 4% to 6% of your trip costs, according to Forbes Advisor’s analysis of travel insurance rates.
For a $5,000 trip, the average travel insurance cost is $203.
The range of rates for a $5,000 trip is from $81 for a basic policy up to $392 for a policy with generous coverage.
Average Cost of Travel Insurance by Trip Cost
If you want the protection that the best travel insurance provides, budget for it as you make your trip plans.
The cost of your trip has a significant impact on how much you pay for travel insurance. For example, the average cost of travel insurance is only $59 for a $1,000 trip but a tad over $1,050 for a $20,000 trip. Travel insurance averages 6% of the trip cost for the $1,000 trip and 5% for the $20,000 trip.
The more you spend on your trip (and insure the trip for), the higher the potential claim pay out is for the travel insurance company.
Forbes Advisor analyzed travel insurance plans at various price points for a 30-year-old female traveling from California to Mexico for a 14-day trip.
Our analysis of trips costing $1,000 to $50,000 found that the average travel insurance cost is usually 4% to 6% of the trip cost, with 5% the average.
The range of insurance costs varies greatly depending on the policy’s level of benefits. For example, in our review of travel insurance plans for a $2,500 trip, we find the average cost is $110 but observe rates ranging from $44 for a basic policy to $263 for a policy with more perks and protections.
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Average Cost of Travel Insurance by Age
Your age matters to travel insurance companies, but age tends to affect the rates of those age 60 and older the most. Our analysis reveals the average travel insurance cost for someone age 80 is $628 more than the average cost for a 20-year-old.
If you’re a senior planning a trip, you’ll need to budget, on average, an additional 7% to 17% of your trip cost to cover a senior travel insurance policy.
For the 60-year-old traveler, average rates range from $156 for a basic policy to $880 for a plan with more generous benefits.
Average Cost of Travel Insurance by Number of Travelers
The number of people traveling and included on the insurance plan plays a part in what you’ll pay for travel insurance. The more people on the policy, the higher the rates will be, but our analysis finds it causes only a minor increase.
We analyzed rates for a single traveler, a couple and a family of four leaving from California to Mexico on a 14-day trip with a cost of $5,000. The travel insurance costs didn’t substantially go up even as the number of travelers grew. Rates went up only around $40 for a family of four compared to a single traveler.
Average Cost of Travel Insurance by Policy
Here are examples of travel insurance rates for a $5,000 trip to Mexico for travelers age 40, 50 and 60. In addition to age and trip cost, the amount of coverage provided by a policy will affect what you pay. Policies with generous benefits cost more than those with basic coverage.
For example, the PrimeCover Base Plan costs $94 less than the Luxe Plan, but has much lower limits. The Base plan provides $100,000 per person in travel medical insurance and $250,000 per person in medical evacuation coverage. The Luxe Plan provides $250,000 in medical expense coverage and $1 million in medical evacuation.
Average Costs for “Cancel for any Reason” Travel Insurance
Trip cancellation insurance is included in comprehensive travel insurance plans. It will reimburse 100% of the non-refundable money you lose if you cancel your trip for a reason listed in the policy.
If you’re worried that you may want to cancel your trip for a reason not listed in the policy, “cancel for any reason” travel insurance can be an essential addition.
CFAR coverage is an upgrade that allows you to get partial reimbursement (typically 50% or 75% of your prepaid trip costs) no matter the cause for the cancellation.
Our analysis of 32 policies finds the average cost of a policy without CFAR is $232 and a travel plan with CFAR is $381. That’s a difference of about $150. The percent increase in the cost you pay for a policy with CFAR varies significantly—we found a range of 24% to 165%—but it’s usually an average of 50%.
Deciding whether CFAR travel insurance is worth the cost will depend on your needs and risk tolerance. If you want the ability to call off your trip because you changed your mind and don’t want to go, but you still want some reimbursement, consider adding CFAR to your plan. You can see below how CFAR influences the cost of some example policies.
Factors That Affect Travel Insurance Cost
Unlike many other types of insurance, there are usually only a few factors that go into travel insurance pricing.
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Is Travel Insurance Worth It?
Travel insurance is worth it if you can’t afford to lose the money you paid for non-refundable trip costs if you have to cancel or cut a trip short.
Another factor to consider if you’re wondering if travel insurance is worth it: Your U.S. health plan generally may have limited or no coverage in other countries. If you’re traveling abroad, medical expense travel insurance can pay for medical costs, up to the policy limit.
Travel insurance quotes are free. You can compare quotes to determine if travel insurance is worth the expense in your specific situation. With quotes in hand, you can weigh the advantages of having travel insurance compared to the money you could lose without it.
Methodology
To identify how much travel insurance costs, we analyzed rates for 58 travel insurance plans and determined average rates for various trip costs, ages and number of travelers.
The main traveler profile was a 30-year-old female traveling from California to Mexico for a 14-day trip with a cost of $5,000.
We established rates based on the following:
A single traveler age 40, two travelers age 40 and a family of four comprising two travelers age 40 and children ages 8 and 10.
Ages 20, 30, 40, 50, 60, 70 and 80.
Prices of 32 policies with and without “cancel for any reason” insurance to determine CFAR average rates.
Trip costs of $1,000, $2,500, $5,000, $10,000, $20,000, $30,000, $50,000
Read more: How Forbes Advisor Rates Travel Insurance Companies
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Travel Insurance Cost Frequently Asked Questions (FAQs)
How much does travel insurance usually cost?
You should anticipate paying about 4% to 6% of your total trip costs for a travel insurance plan, according to our analysis of rates from some of the best travel insurance companies. For example, a $5,000 trip has an average travel insurance cost of $203.
Rates can vary substantially depending on the plan purchased. For a $5,000 trip, our analysis saw rates as low as $81 and as high as $392. What you’ll pay is based on several factors, such as your total trip cost, the benefits included in the plan and your age.
Does travel insurance cover 100% of your costs?
Travel insurance does not cover 100% of your costs—it only reimburses you for prepaid, non-refundable trip costs. For example, if you cancel your trip and your airline refunds your airfare, you would not be compensated by the travel insurance company for the cost of your plane tickets. Trip cancellation insurance lets you recoup your prepaid, forfeited and non-refundable costs if you’re unable to take a trip due to an unforeseen event listed in your policy.
What company offers the cheapest travel insurance?
Travel Insured International and WorldTrips offer low-cost travel insurance, and both earned top scores in our ranking of the cheapest travel insurance companies. We assessed 42 policies to find the best travel insurance plans. Then, among the best plans (receiving at least 4 stars), we identified the policies with the lowest average cost.
Forbes Advisor is not a licensed insurance agency. Insurance offerings are powered by CompareCoverage, NPN 20753534 and CA Lic. # 6011227. While our parent company has an interest in PrimeCover, our review of the product was subjected to our team’s standard rigorous editorial process, which remains independent of any influence from insurance companies, business relationships, affiliates or any other external parties.
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