According to Forbes Advisor’s review of travel insurance rates, the average cost of travel insurance is between 5% and 6% of your trip’s expenses. The average cost of travel insurance for a $5,000 trip is $228, with rates ranging from $154 for a simple policy to $437 for one with extensive coverage.
The price of your travel insurance is significantly influenced by the expense of your vacation. For instance, the average cost of travel insurance for a $1,000 trip is approximately $61, whereas it is slightly over $1,200 for a $20,000 vacation. The average cost of travel insurance for both types of trips is 6%. When planning your vacation, set aside money for travel insurance if you want the essential security it offers.
To get the average rates for different trip expenditures, traveler ages, and traveler numbers, Forbes Advisor examined quotes for 23 different travel insurance policies. In order to calculate average costs, we also looked at 16 travel insurance policies with and without “cancel for any reason” (CFAR) coverage.
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Average Travel Insurance Costs Broken Down by Trip Cost
Travel insurance providers base their ratings primarily on the cost of your vacation. The possible claim payout for the travel insurance provider increases with the amount you spend on your trip (and the amount you insure it for).
For a 30-year-old female traveling for 14 days from California to Mexico, Forbes Advisor examined travel insurance policies at various price points.
We determined that the average cost of travel insurance is often 5% to 6% of the trip cost, with 6% being the average, based on our examination of trips costing $1,000 to $50,000.
Depending on the degree of benefits provided by the policy, the range of insurance costs vary substantially. For instance, when we looked at travel insurance policies for a $2,500 trip, we discovered that the average cost was $120, but that prices could be as low as $76 for a basic coverage or as high as $240 for a more comprehensive one.
|Trip cost||Average travel insurance cost||Travel insurance cost as % of trip cost|
Average Travel Insurance Costs by Age
The age you are has an impact on your travel insurance prices, but people over 60 tend to be most affected. According to our data, the average travel insurance premium for an 80-year-old is $683 higher than the equivalent premium for a 20-year-old.
In order to cover a senior travel insurance coverage, you should prepare to allocate an extra 8% to 18% of your trip budget if you’re intending to travel.
|Age of traveler||Average travel insurance cost||Travel insurance cost as a % of trip cost||$ difference from age 20|
Average premiums for a 60-year-old traveler range from $270 for a straightforward coverage to $724 for one with more comprehensive benefits.
By the number of travelers, the average cost of travel insurance
The cost of travel insurance depends on how many individuals are traveling and are covered by the insurance plan. The rates will grow as more people enroll in the policy, but according to our analysis, the effect is only marginal.
We looked at prices for a single traveler, a couple, and a family of four on a $5,000, 14-day journey from California to Mexico. Even as the number of tourists increased, the cost of travel insurance did not significantly increase. The difference in price between a family of four and a lone traveler was only about $30.
Our analysis of average prices reveals that a single female traveler aged 40 spends the least for travel insurance, whereas two individuals aged 40 (one male and one female) pay barely an additional $20 for their plan. The family, which consists of two adults, one male and one female, both 40 years old, together with two kids, aged 8 and 10, only pays $12 more than the couple.
|Traveler type||Average travel insurance cost||$ difference compared to single adult|
|Two adults and two children||$323||$29|
Cost of “Cancel for Any Reason” Coverage on the Average for Travel Insurance
Comprehensive travel insurance plans include trip cancellation coverage. If you cancel your trip for one of the reasons specified in the policy, it will reimburse you 100% of the non-refundable money you lose.
“Cancel for any reason” (CFAR) coverage can be a crucial supplement if you’re concerned that you might need to postpone your trip for a motive not covered by the policy.
No matter the reason for the cancellation, “Cancel for Any Reason” coverage is an upgrade that enables you to receive a partial reimbursement (usually 50% or 75% of your prepaid travel costs).
An average policy without CFAR costs $225, whereas a travel plan with CFAR costs $337, according to our review of 16 policies. This is a $112 cost difference.
The cost of a travel insurance policy is increased by CFAR by an average of 50%.
|Travel insurance plan||Travel insurance cost without CFAR||Travel insurance cost with CFAR||$ difference with CFAR||% increase by adding CFAR|
|John Hancock Insurance Agency Bronze||$173||$260||$87||50%|
|GoReady Pandemic Plus||$174||$261||$87||50%|
|Tin Leg Gold||$191||$287||$96||50%|
|John Hancock Insurance Agency Silver||$194||$291||$97||50%|
|USI Affinity Ruby||$195||$293||$98||50%|
|Travelex Travel Select||$208||$291||$83||40%|
|Seven Corners RoundTrip Choice||$209||$297||$88||42%|
|Trawick Safe Travels Voyager||$222||$377||$155||70%|
|Tin Leg Luxury||$222||$311||$89||40%|
|HTH Travel TripProtector Preferred||$232||$348||$116||50%|
|USI Affinity Diamond||$238||$369||$131||55%|
|Travel Insured International Worldwide Trip Protector||$246||$354||$108||44%|
|Tin Leg Adventure||$252||$341||$89||35%|
|John Hancock Insurance Agency Gold||$274||$411||$137||50%|
|Berkshire Hathaway LuxuryCare||$298||$411||$113||38%|
What Factors Affect Travel Insurance Prices?
The price of travel insurance depends on a number of variables. The travel insurance plan has a single benefit level. As an illustration, a single plan might provide up to $25,000 in travel medical insurance, whereas a another one might offer up to $500,000. Also:
- Total cost of your trip: Another key element in the price of your travel insurance is the amount you wish to insure. The sum of all pre-paid and non-refundable charges, including airfare, lodging, excursions, and special tours, is the amount you want to insure. Non-refundable expenses, like a refundable hotel stay, should not be insured. Insurance claims for costs that are eligible for reimbursement are not allowed.
- traveler’s age: In general, the cost of travel insurance rises with age. This is due to the increased risk of illness and injury among elder travelers.
- Travelers’ numbers: The cost of travel insurance will rise as more people join you on your vacation and require more insurance to protect everyone.
- Trip length: A longer trip may cost more to insure because the possibility of making a claim rises.
To get the average rates for different trip costs, traveler ages, and passenger numbers, we examined rates for 23 travel insurance policies. In order to get the CFAR average pricing, we looked at 16 different travel insurance policies both with and without “cancel for any reason” coverage.
The main tourist was a 30-year-old woman who was taking a $5,000, 14-day trip from California to Mexico. We changed the trip prices in order to obtain average rates for trip costs.