How Much Should Travel Insurance Cost?

Travel insurance is one-size-fits-all, so the price and conditions of any policy will vary. However, it may be useful to understand pricing guidelines to plan for your insurance purchase.

In general, you should expect a policy 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 between $250 - $500 depending on variables such as the age of the travelers, the length of the trip and the cost of the trip. Let’s dive deeper into the specifics so you can understand any variation from this general rule.

The providers will use a few pieces of personal information to calculate the cost of a policy: age of the travelers, number of travelers, length of travel and type of coverage.

Among the most important of these is the age of the travelers. Typically, once a traveler reaches the age of 65, rates tend to increase. Both length of time of travel and number of insured travelers will increase the risk factor, thus increasing the premium.

The type of coverage will also affect the travel insurance premium. A basic, no-frills comprehensive policy will naturally cost less than one that includes a Cancel For Any Reason benefit. If you need a high rate of coverage for medical expenses or medical evacuation, the rates will be higher than a more standard medical benefit.

The premium should not deter you from buying the coverage that you feel you need. 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 trip coverage will make the most sense.

Prices will always vary between plans, providers and types of coverage. So it’s important to compare prices among all the options you think are best for you. Be wise when doing so and make sure to really compare “apples to apples” – that is, only compare the 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 benefits that don’t suit you completely. Travel insurance, like any other insurance, is not the kind of purchase that should be shortchanged.

Written by on 2/10/15.
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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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