We’re well into the summer travel season, and the cost of travel insurance continues to creep up. The current average cost to insure a trip is $267.62, up from $264.10 last week, according to travel insurance agency SquareMouth.
The exact amount you’ll pay for travel insurance depends on several factors, including your destination, how many people are traveling, and the cost of your trip.
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Travel insurance weekly rates at a glance:
Average premium: $267.62 per trip
Average trip cost for all destinations worldwide: $5,974.94
Average trip length: 40 days
Average cost of travel insurance by trip
The more you spend on flights, hotels, and pre-booked activities, and the longer you’re planning to travel, the more you’ll pay to insure your trip.
According to the US Travel Insurance Association, travel insurance usually costs 4% to 8% of the total trip cost. Here are the current average costs of travel insurance for domestic and international trips.
DestinationAverage trip costAverage cost of travel insuranceDomestic$4,358.94$174-$349International $4,274.67$171-$342
Source: SquareMouth
Average cost of travel insurance by most popular destinations
Some destinations are more expensive than others, and traveling to a more expensive country can increase the amount you’ll spend to insure your trip.
Here’s how the prices stack up for the 10 most popular destinations. The average cost of travel insurance for each country is calculated based on the US Travel Insurance Association’s benchmark of travel insurance costing 4% to 8% of the total trip price.
CountryAverage trip costAverage cost of travel insuranceUnited States$4,358.94$174-$349Italy$6,016.76$241-$481Mexico$2,928.71$117-$234Israel$2,433.55$97-$195France$4,473.46$179-$358Canada$2,933.24$117-$235United Kingdom$4,210.69$168-$337Spain$4,567.38$183-$365Germany$4,327.25$173-$346Argentina$1,656.57$66-$133
Source: SquareMouth
When people are buying travel insurance
According to a survey by AAA, 88% of travelers think reimbursement after a trip cancellation is the most valuable benefit of travel insurance.
According to data collected by SquareMouth over the last six months, travelers generally buy cancellation travel insurance 49 days before their trip, while travelers who buy travel insurance without cancellation coverage usually make the purchase 15 days before their trip.
Travel insurance typeAverage days from purchase to tripAverage trip lengthAverage cost of travel insuranceCancellation4915$325.88Non-cancellation1521$91.76
Source: SquareMouth
Average cost of travel insurance by age
The older a traveler is, the more travel insurance will cost for their trip. Insurers factor in the likelihood of a traveler needing medical care on a trip, and the likelihood is higher for older travelers.
Here are the average trip and travel insurance costs, by generation. Again, we’re calculating the average cost of insurance using the 4% to 8% of total trip cost metric.
GenerationAverage cost of tripAverage cost of travel insuranceGen Alpha (born 2013 or later)$1,283.44$51-$103Gen Z (born 1997-2012)$1,777.44$71-$142Millennials (born 1981-1996)$1,899.31$76-$152Gen X (born 1965-1980)$2,138.41$86-$171Baby Boomers (born 1946-1964)$2,911.63$116-$233Silent (born 1945 or before)$2,718.23$109-$217
Source: SquareMouth
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 and 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.
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.