Considering Travel Insurance?
Via Forbes Advisor’s Website
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 $200.
- The range of rates for a $5,000 trip is from $131 for a basic policy up to $ 291 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 $61 for a $1,000 trip but a tad over $1,200 for a $20,000 trip. With either trip, the travel insurance averages 6% of the trip cost.
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.
| Trip cost | Average travel insurance cost per trip | % of trip cost |
|---|---|---|
| $1,000 trip cost | $58 | 6% |
| $2,500 trip cost | $108 | 4% |
| $5,000 trip cost | $200 | 4% |
| $10,000 trip cost | $438 | 4% |
| $20,000 trip cost | $963 | 5% |
| $30,000 trip cost | $1,343 | 4% |
| $50,000 trip cost | $2,168 | 4% |
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 $108 but observe rates ranging from $75 for a basic policy to $170 for a policy with more perks and protections.
Compare & Buy Travel Insurance
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.
| Age of traveler | Average travel insurance cost per trip | Travel insurance cost as a % 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 |
For the 60-year-old traveler, average rates range from $261 for a basic policy to $492 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 $48 for a family of four compared to a single traveler.
Our review of average costs finds a single 30-year-old female traveler pays the least for travel insurance, while the two 40-year old adults (one male, one female) pay $24 more for their plan. The family, consisting of two 40-year-old adults (one male, one female) with two children ages 8 and 10, pay only $24 more than the couple.
| Traveler type | Average travel insurance cost per trip | $ difference from single adult |
|---|---|---|
| Single adult | $257 | |
| Two adults | $280 | $23 |
| Two adults and two children | $304 | $47 |
Average Cost of Travel Insurance by Policy
Here are examples of travel insurance rates for a $5,000 trip to Mexico for a 30-year-old female. 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 ExactCare policy from Berkshire Hathaway Travel Protection has $25,000 in travel medical benefits and $500,000 in medical evacuation insurance and costs $131, based on our analysis. The LuxuryCare plan has $100,000 in medical expense coverage and $1 million in evacuation benefits and costs nearly twice as much.
| Company name | Policy name | Travel insurance cost for insuring a $5,000 trip |
|---|---|---|
| ExactCare | $131 | |
| Berkshire Hathaway Travel Protection | LuxuryCare | $233 |
| Pandemic Plus | $174 | |
| TripProtector Classic | $169 | |
| HTH Travel Insurance | TripProtector Preferred | $228 |
| Travel LX Basic | $292 | |
| IMG | Travel SE | $169 |
| Bronze | $173 | |
| John Hancock Travel Insurance Agency | Gold | $274 |
| John Hancock Travel Insurance Agency | Silver | $194 |
| Adventure | $170 | |
| Tin Leg | Gold | $191 |
| Tin Leg | Luxury | $144 |
| Worldwide Trip Protector | $246 | |
| Travel Basic | $154 | |
| Travelex | Travel Select | $208 |
| Safe Travels Voyager | $222 | |
| Diamond | $238 | |
| USI Affinity | Ruby | $195 |
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 14 policies finds the average cost of a policy without CFAR is $206 and a travel plan with CFAR is $300, a difference of $94. On average, CFAR raises the cost of a travel insurance plan by 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.
| Travel insurance plan | Travel insurance cost without CFAR | Travel insurance cost with CFAR | $ difference with CFAR | % increase in cost with CFAR |
|---|---|---|---|---|
| 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% |
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.
Compare & Buy Travel Insurance
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 19 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, a couple age 40 and a family of four comprising two adults age 40 and children ages 8 and 10.
- Ages 20, 30, 40, 50, 60, 70 and 80.
- Prices of 13 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
Travel Insurance Cost Frequently Asked Questions
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 $200.
Rates can vary substantially depending on the plan purchased. For a $5,000 trip, our analysis saw rates as low as $131 and as high as $291. 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.
Discover more from Slow Travel News
Subscribe to get the latest posts sent to your email.
