How Much Should Travel Insurance Cost?

Travel insurance is not a one-size-fits-all proposition, so the price and conditions of any travel insurance policy you buy will vary. However, there are some guidelines about pricing that may be useful to understand, so that you can feel more comfortable that you are getting a good value when making a travel insurance purchase.

In general, you should expect that a travel insurance policy will cost you anywhere from 4%-10% of your total pre-paid, nonrefundable trip cost. In other words, if you purchase a trip with a total cost of $5,000, your travel insurance policy should not cost any more than $500. While there are exceptions to this rule, which we’ll explain a bit more in a moment, you can use that figure as a guideline to help you avoid unnecessarily high premiums.

In order to calculate the cost of your travel insurance policy, the company will use a few pieces of personal information that factor into the equation. Among the most important of these is the age of the traveler(s). If you are 88 years old, your travel insurance will likely be more expensive than that of a 20-year-old. Additionally, the length of time you will be traveling and the number of people that will be covered on the policy can affect the price of your travel insurance policy.

Other factors to consider in deciding whether or not the rate you’ve been quoted seems reasonable include additional coverage options you may have chosen when getting your quote. A basic, no-frills travel insurance comprehensive policy will naturally cost less, per traveler, than one that includes things like Cancel For Any Reason coverage. If you also asked for a particularly high rate of coverage for medical expenses, or if you’re purchasing something like a medical evacuation policy, you may also see that the rates are different than they would be with more standard benefits. However, you should not be deterred from buying travel insurance coverage that you really feel you need just because the price of the policy is higher than one without the additional benefits. 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. Only you can really decide what level of risk is acceptable for you, and what kind of travel insurance coverage will make the most sense for your trip.

While prices will always vary across different plans, different travel insurance providers, and different kinds of coverage, it’s important to compare prices among all the options you think are best for you and make sure that you are getting reasonable benefits at a reasonable price. Be wise when doing so, and make sure to really compare “apples to apples” – that is, compare only those plans that offer you similar levels of coverage and are absolutely appropriate for your needs. Don’t be swayed by a lower-priced plan with inferior benefits; travel insurance, like any other type of insurance, is not the kind of purchase that should be shortchanged.

Written by on 8/24/13.
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Question:


I'm concerned about needing to return due to a family emergency. Is there coverage for that scenario?
PeterF,
05/24/2014

Answer:


The number one covered reason for Trip Cancellation and Trip Interruption is the unforeseen sickness, accidental injury or death to you, a traveling companion or an immediate family member. To see all of the covered reasons to cancel or interrupt your trip, please click on the dollar amount that appears NEXT to the words "Trip Cancellation" when viewing a quote.
NicholeH,
Customer Care insureMyTrip
05/24/2014
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Question:


Hint: Provide details to help us answer as soon as possible. When I buy travel insurance, policies all seem to include coverage I don't need but have to pay for. Am retired so don't need coverage for cancellation due to having to work. When I buy airline ticket with my credit card, it covers baggage delay, accidental death. Homeowners insurance covers lost luggage. All I really want is trip cancellation/interruption and medical (if traveling abroad since Medicare doesn't cover). But trip insurance seems to be sold as a package.
Nancy,
02/08/2014

Answer:


That is correct, they are sold as a package. I would recommend entering your quote details and obtaining a quote for one of the Comprehensive Package Plans. They premiums are determined by your trip cost, your length of travel and your ages. The premiums are pretty low until you enter a trip cost, so the other benefits are not very expensive.
NicholeH,
Customer Care insureMyTrip
02/08/2014
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Question:


We bought Celebrity's travel insurance and, after the Celebrity Millennium canceled our August 23, 2103 Alaska cruise because the ship had an engine failure, the travel insurance paid nothing. We had flown to Alaska and were waiting to board the ship when we were informed by text message that the cruise was canceled. The cruise line paid part of the costs we incurred to get home, but the insurance refused to pay the costs we incurred getting to the embarkation port. Our expenses going to the embarkation port were not reimbursed, and I submitted a claim under the trip delay insurance. Should they have paid?
RobertH,
02/08/2014

Answer:


Unfortunately, we are unable to discuss any travel insurance policies that we do not offer, as we are not familiar with them and cannot provide accurate information. We can certainly discuss our policies and help find the best policy to cover your concerns on any future trips you have planned. I have heard that purchasing travel insurance through the cruise line is not always the best option since they are only insuring the cruise costs and not anything before or after.
NicholeH,
Customer Care insureMyTrip
02/08/2014
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Question:


As seniors, our dogs are like our children now. As they age, we worry about their health. Other than 'cancel for any reason', is there anyone who has an option to include pet health for a reason for cancelling a trip? If not, I think it would be a good bet for someone to do, as many people have pets.
mikeP,
01/17/2014

Answer:


Unfortunately, there are currently no policies that will cover cancellation due to the health of a pet. In order for you to be able to cancel for this reason you would need to use a cancel for any reason policy for the time being.
David M.,
Customer Care insureMyTrip
01/17/2014
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