Last updated on 03/11/2024
Travel insurance is not one-size-fits-all, so the price and conditions of a plan will vary. However, it may be useful to understand pricing guidelines to plan your travel insurance purchase.
In general, you should expect a plan will cost anywhere from 4%-10% of your total pre-paid, nonrefundable trip cost. For example, if you purchased a trip with a total cost of $5,000, travel insurance policies available to you will likely range in price from $250-$500, depending on variables.
Factors of Travel Insurance Rates
The providers will use a few pieces of personal information, other than the cost of your trip, to calculate the cost of a plan:
- Age of the travelers
- Number of travelers
- Length of travel
- Type of coverage
The age of the travelers is considered one of the most important of the four factors. Typically, a traveler that is over the age of 65 can expect increased rates. If you are traveling with minors, you may be able to add them to the plan at no additional cost, or at a lower rate – depending on the travel insurance company.
The number of travelers and length of travel can often increase the rates of the plans. This is because, with more variables, there is more risk attached to the plan. For instance, if you are traveling overseas for 21 days, as opposed to only seven, you are opening yourself up to more medical risks and risk of travel interruption. These are both reasons to use your plan. The same can be said if you are traveling with four to five people, as opposed to just two.
The type of coverage you choose will also change the rate. A basic, no-frills comprehensive plan will naturally cost less than one that includes a myriad of optional benefits like Cancel for Any Reason or rental car collision coverage. Similarly, higher coverage limits for medical expenses or medical evacuation will increase the rate over a plan with lower amounts of coverage.
Some providers may also take other factors into account which is why the policy premium may differ from trip to trip.
The Right Travel Insurance Plan
The plan rate should not deter you from purchasing the coverage that you feel you need to fully protect your trip. InsureMyTrip has hundreds of plans for all different types of travelers. The kind of protection needed by a traveler who intends to hike the Himalayas, for example, is vastly different from that needed by a family taking a short cruise to the Bahamas.
It’s not only important to compare travel insurance rates, but also coverage. This will ensure you are finding the right travel insurance plan for your trip. It can be helpful to compare travel insurance plans that offer you similar levels of coverage and are appropriate for your needs. Don’t be swayed by a lower-priced plan with benefits that don’t suit you completely; or, likewise, high-priced plans that over insure your trip.
Disclaimer: The information contained in this article serves as a general overview of benefits and should only be used for informational purposes. Refer to your individual certificate of insurance for specific coverages, exclusions and benefits. When in doubt, please contact one of our licensed agents for additional assistance.
FAQs
Travel insurance is not one-size-fits-all, so the price and conditions of a plan will vary. However, it may be useful to understand pricing guidelines to plan your travel insurance purchase. In general, you should expect a plan will cost anywhere from 4%-10% of your total pre-paid, nonrefundable trip cost.
How much should I expect to pay for trip insurance? ›
The average cost of travel insurance is 5% 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 $228, and the range of rates is from $154 for a basic policy up to $437 for a policy with generous coverage .
What should I pay for travel insurance? ›
A travel insurance policy typically costs between 4 and 10% of the overall price of your trip. The cost can vary: Plans with higher limits and more optional coverage cost more. A plan with a CFAR benefit can cost up to 40% more.
Is Faye a good travel insurance company? ›
We gave Faye Travel Insurance an overall score of 4.6 out of 5 stars and ranked it #1 as the best travel insurance provider with an entirely online experience. Faye's online application is simple, allowing you to get a quote in as little as 60 seconds, and the company's free app makes filing a claim just as easy.
What is trip protection fee? ›
The most common trip protection plans allow you to waive a cancellation fee if you can't make your trip. Some also allow you to receive a credit for the full value of your trip. The costs can vary, but typically it's less expensive than travel insurance.
How much in advance should I get travel insurance? ›
If you're wondering when you should buy travel insurance, the simple answer is as soon as possible. Ideally, you'll buy coverage no later than 15 days prior to your trip.
Does travel insurance get more expensive closer to the trip? ›
Unlike other aspects of your travel experience like airfares or hotel-room rates, the price of travel insurance doesn't increase the closer you get to your travel date. There's no financial penalty if you wait to buy travel insurance (except for those bonus coverages, of course).
What is the recommended amount of travel insurance? ›
How much travel medical insurance do you need? Squaremouth, a travel insurance comparison site, recommends buying at least $50,000 in emergency medical coverage for international travel. For travelers going on a cruise or to a remote destination, the site recommends at least $100,000 in coverage.
What does travel insurance not cover? ›
Most travel insurance policies won't pay out if you're negligent while under the influence of alcohol or drugs, and have an accident or have property stolen.
How much does Faye cost? ›
Faye insurance plans
$146.94. 100% of trip cost (up to $2,000). 150% of trip cost (up to $3,000). $4,500 ($300 per day, plus $200 for flight delay).
Travel insurance compensates you for money you lose due to unforeseen events before and during your trip. Just as importantly, it can pay for emergency medical care and evacuation during your trip.
What is the average cost for travel insurance? ›
According to our research, the average cost of travel insurance is $204, but you could pay anywhere between $14 and $765 for travel insurance. While this may seem like a wide price range, it's important to understand that travel insurance is not a “one price fits all” purchase.
Is it smart to get travel insurance? ›
Travel insurance can be useful, but it's not always necessary. The key to knowing if you need travel insurance is figuring out your specific risks for any given vacation, then deciding if you can buy coverage that adequately protects you from any financial losses and pitfalls that might occur.
What is the difference between trip protection and trip insurance? ›
Travel protection provides a more basic form of coverage for tourists. It tends to be significantly cheaper but usually only covers trip cancellations. On the other hand, travel insurance offers more comprehensive coverage, often including medical emergency evacuation, baggage delays and flight cancellations.
Is 50000 enough for travel insurance? ›
Every plan is different, but the coverage amounts and benefits may vary. Determine how much you really need. For example, SquareMouth recommends international travelers get around $50,000 in Emergency Medical coverage and $100,000 for cruises or travel to remote areas.
Is travel insurance always worth it? ›
Travel insurance can be useful, but it's not always necessary. The key to knowing if you need travel insurance is figuring out your specific risks for any given vacation, then deciding if you can buy coverage that adequately protects you from any financial losses and pitfalls that might occur.
What should the coverage limit be for travel insurance? ›
Policy maximums can typically range between $10,000 and $8 million, but will vary from plan to plan. If you need to use your coverage during your travels, the travel insurance policy will cover eligible expenses detailed in the policy's documentation up to the policy maximum amount.
