Key points
- Travel insurance costs an average of 5% to 6% of the cost of your trip.
- Your travel destination and your age affect the cost of travel insurance.
- Older travelers should budget extra for travel insurance as they pay a higher percentage of their travel costs – an average of 18% for 80-year-olds.
There are several factors that affect how much you will pay for travel insurance, from your age and travel destination to the cost of your trip and the coverages you choose. Our insurance experts have analyzed rates from the best travel insurance companies and we’ve used this data to break down the average cost of travel insurance for you.
How much does travel insurance cost?
The average cost of travel insurance is 5% to 6% of your non-refundable travel expenses. Travel insurance for $1,000, for example, costs $61 (6%) on average.
Average cost of travel insurance by trip price
Average cost of travel insurance by age
While the cost of your trip is a key factor in how much you’ll pay for travel insurance, your age can also affect your rate. This is especially true for travelers over the age of 60. The average cost of travel insurance for a 70-year-old rises to 11% of the total cost of travel, and 80-year-old travelers pay an average of 18% for travel pension insurance.
Average price by number of passengers in your group
If you are traveling with other people, it is usually cheaper to insure everyone in your group with one travel insurance policy. Some plans even cover children under 17 for free as long as they are traveling with their parents on the same route.
In our analysis of travel insurance rates, we found that a family of four taking a $5,000, 14-day trip from California to Mexico paid only about $29 more than a solo traveler purchasing travel insurance for the same trip. A couple, both in their 40s, will pay an average of $17 more than a single passenger of the same age.
Rates vary by travel insurance plan
One of the biggest factors that affects the cost of travel insurance is the travel insurance plan you choose. The best travel insurance plans include several types of coverage, including coverage for trip cancellation, trip delay, trip interruption, travel medical assistance, emergency medical evacuation, and baggage loss and delay. The more comprehensive the plan, the more you will pay for travel insurance.
The coverage limits of your policy will also affect its cost. Limits dictate how much you will be reimbursed if you use your insurance. All 5-star plans in our Best Travel Insurance rating offer medical reimbursement limits of $1 million. The higher the reimbursement limit, the more expensive your cover will be.
MORE ▼: The best travel insurance companies
Sample rates for different travel insurance plans
What does travel insurance cover?
“Travel insurance provides coverage for prepaid, non-refundable travel expenses – up to policy limits – in the event that travel is canceled or interrupted for a covered reason,” said Daniel Durazo, director of external communications at Allianz Partners USA.
The trip cancellation insurance portion of your travel insurance can refund up to 100% of lost trip deposits, such as airfare, hotel rooms, car rentals, tours and cruises, if you cancel your trip for a reason listed on your policy .
“Examples of acceptable reasons for canceling a trip include illness or injury to the traveler, a close family member, or a travel companion,” Durazo said. “Other reasons may include your travel provider ceasing service for 24 hours due to a natural disaster, bad weather or strike, your home or destination becoming uninhabitable, or you or a traveling companion being made redundant after purchasing your policy.”
Once you start your trip, travel insurance continues to offer financial protection, Durazo said. “Post-departure benefits can help cover expenses such as lost bags and travel delays and, most importantly, can include emergency medical cover and emergency medical transport.”
If you become ill or injured while traveling, travel insurance can cover your medical expenses, including doctor’s fees and hospital expenses that may not be covered by your health insurance. “Domestic health plans are generally not accepted outside the U.S.,” Durazo said. “So it’s especially important to get travel insurance with medical cover and emergency medical transport when traveling abroad.”
Even if you’re not traveling out of the country, travel insurance with medical coverage can be a good idea, Durazo said. “Because many Americans now have high-deductible health insurance plans, trips to the emergency room or emergency room can be expensive, but can be covered by travel insurance while traveling.”
Costs to add “cancellation for any reason” coverage.
If you want to be able to cancel your trip for any reason—not just those listed on your policy—consider purchasing a travel insurance plan that offers “cancellation for any reason” (CFAR) coverage.
“In 2023, the tourism industry faces a number of challenges, including an increase in bad weather, staff shortages and strikes,” said Rajiv Srivastava, CEO of VisitorsCoverage. “As a result, we are seeing an increase in canceled trips, disrupted flights and stranded passengers.”
“To prepare for these uncertainties,” Srivastava said, “travelers should consider choosing flexible insurance coverage options such as ‘cancellation for any reason’ and ‘interruption for any reason’ that protect investment in travel in the event of cancellation or interruption.’
Based on our analysis of 16 travel insurance policies, adding CFAR coverage to a travel insurance policy will increase your costs by about 50%.
Interruption for Any Reason (IFAR) cover isn’t as readily available as an upgrade, but it usually only adds 3% to 10% to the cost of your travel insurance.
Methodology
Using data from Squaremouth, a travel insurance comparison website, our insurance experts analyzed rates for 23 travel insurance plans. Average fares were determined by comparing travel offers with different costs, passenger ages, passenger groups, and travel plan benefits.
Frequently Asked Questions (FAQ)
The average cost of travel insurance is between 5% and 6% of the cost of the trip. How much you pay for travel insurance will depend on the travel insurance company and plan you choose, the total cost and destination of your trip, the ages of the travelers and the number of travelers you are insuring.
You may be wondering: Is travel insurance worth it?
A comprehensive travel insurance plan will include coverage for trip cancellation, trip interruption, trip delay, medical expenses, emergency medical evacuation, and baggage delay and loss.
Read your travel insurance policy carefully to find out what is covered and what is excluded. Sometimes you can buy add-ons like ‘cancellation for any reason’ (CFAR) cover.
Do you need travel insurance? What does travel insurance cover?
Yes, travel insurance is usually more expensive for older travelers. While the average cost of travel insurance for a 20-year-old traveler is $224, the average cost increases at age 60 to $420 and to $907 for an 80-year-old.
Find the best coverage: The best travel insurance companies for seniors