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Travel insurance premiums are typically between 4% to 8% of your total trip cost.
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Travel insurance covers the non-refundable parts of your trip and any medical expenses from an injury.
The average cost of travel insurance is $248 per trip.
Policy type, trip cost, destination, age, and the number of travels are factors that impact your premiums. Compare policy options for free at SquareMouth.
According to data gathered by SquareMouth — a travel insurance agency — the average travel insurance policy costs $248 per trip.
Average cost of travel insurance by trip cost
The more you spend on your hotels, flights, and pre-booked activities, and the longer you’re traveling, the more you’ll spend to insure your trip. “Travel insurance generally costs from 4% to 8% of the total trip. Cost is based on the length of trip, destination, and age of the policyholder,” according to the US Travel Insurance Association.
Trip cost Insurance cost
$2,000
$80 to $160
$3,000
$120 to $240
$4,000
$160 to $320
$5,000
$200 to $400
Source: US Travel Insurance Association
There are also differences in rates when you insure your trip versus when you don’t insure your trip. Policies with “no trip cost insured” refer to policies that only offer medical benefits covering emergency medical expenses that you incur during your trip.
Average premium with trip cost insuredAverage premium without trip cost insured
$320.13
$86.53
Source: Square Mouth
Average cost of travel insurance by destination
When controlled for cost, the destination doesn’t change how much you’ll spend to insure your trip. It’s worth noting that some countries are naturally more expensive with flight and lodging costs, which could ultimately increase your travel insurance costs.
Here’s how the prices stacked up:
Destination Average trip length (days)Average trip costAverage trip insurance premiumUnited States13$4,312$237Italy17$5,814$330Philippines24$1,512$108Mexico8$2,719$154Israel16$2,201$150France17$4,546$280Spain19$4,306$258United Kingdom19$3,691$263Canada15$3,182$248Greece17$5772$335
Source: SquareMouth
How are travel insurance premium rates determined?
A traveler’s age is a significant factor in determining the cost of travel insurance. The older a traveler is, the more cost is associated with the trip. For instance, a senior traveler may need more insurance for health-related emergencies than a millennial.
Other factors that affect the cost of a premium include the overall cost of the trip, number of travelers in the party, the duration of the trip, the destination, the type of policy, and any add-on coverage.
What does travel insurance cover?
Travel insurance can help reimburse you for non-refundable parts of your trip or help you if you’re injured or face an emergency. Travel insurance policies cover six main things:
Trip cancellation or interruptionTrip delaysMedical costs while travelingBaggage damage, delays, or lossEmergency transportationRental car damage
If you have a credit card, you may already have access to some of these coverages without purchasing a separate travel insurance policy. Many airline credit cards or travel credit cards come with trip cancellation, delay coverage, and baggage coverage. For example, the Chase Sapphire Reserve and Chase Sapphire Preferred cards both come with some travel coverage, including trip cancellation, interruption, and delay coverage, baggage delays, rental cars, accidental death, and dismemberment coverage.
However, before getting a travel insurance policy, it’s essential to make sure that the terms match your needs or concerns. During the COVID-19 pandemic, that’s especially important — each travel insurance company has unique reimbursement rules and cancellation rules due to this event. Read the fine print of any travel insurance policy before purchasing.