The answer to how much for travel Insurance will begin with a general estimate for a travel policy. As you add or delete specific types of coverage, that cost will rise or fall. Remember, though, that you are in charge of designing your policy and thus have control of that cost. Here are the numbers for an average travel insurance cost.

How Much For Travel Insurance?

How much does travel insurance cost

The average travel insurance cost will be 4 to 12% of the cost of your trip. So if the total cost of your vacation trip is $3,000, you will pay between $120 and $360 for trip insurance. This percentage above will give you your basic travel insurance estimate. Adding or deleting specific coverages will raise or lower the travel insurance premium.

A travel insurance estimate will take into consideration these four factors:

1. How old you are

2. The total cost of your trip

3. The type of coverage you want

4. The number of people you’re taking along

Some insurance companies may add these two factors:

1. Where are you going

2. Number of days you’re traveling


 

How Old are You?

Here’s the ironclad rule on age: The older you are, the more you’ll pay. Insurance companies figure that the older you are, the more likely it is that you’ll cancel your trip. That means that insurance companies pay out a good amount to people who buy cancellation insurance. It’s a dollars game.


 

The Total Cost of Your Trip

Total cost of the trip

Basic math applies here. In simple terms, the more you pay for a trip the more you’ll pay for travel insurance costs.

For example, insurance companies that cover pre-paid, nonrefundable items on your trip will charge you more for the insurance premium.

Another example – if you pre-pay for hotel rooms, meals, transportation, cruise ship tickets, spa care and scuba lessons, you will be charged more.

On the other hand, if you buy a trip where all of the above are included in a package price, you may pay less.


What Type of Coverage Do You Want

A basic travel insurance plan will cost less than a luxury plan. Insurers recommend that you compare different plans. You may find that a luxury plan isn’t much more than basic coverage.


Customize Your Coverage

Insurers may offer you optional coverage for a small sum. For example, you may be able to upgrade your medical evacuation coverage for only a few dollars. Bear in mind that a medical evacuation can cost upwards of $50,000, according to the US State Department. Higher limits for medical emergencies may be offered for as little as $10.

These options offer you the chance to upgrade your coverage and add little to your overall travel insurance price.


How Many People Are Traveling

Ask about family travel insurance plans. One insured adult coverage may include many family members. For example, some insurers may offer a deal where they price in the cost of two children for every insured adult.


Where Are You Going

Where are you going

Some insurers may charge you more for a backpacking adventure to the Nepal mountains versus a family vacation at Tokyo Disney Resort.

The reason why is simple to understand: the logistical complexity and cost of a medical evacuation from a Nepal mountain top will cost an insurer more money. Compensating you for a lost purse snatched by a pickpocket on a city street will cost the insurer less.


 

Number of Days You’re Traveling

The longer you travel, the more it’s possible that something might go wrong. Thus, your travel insurance price will be higher. To an insurer, it all makes financial sense.


Comprehensive Insurance Plans

This plan includes pretty much everything you need to protect your travel investment. It will cover such contingencies as lost luggage, cancelling the trip, airline flight delays and emergency medical coverage.

The average travel insurance cost for a comprehensive plan will be 5 to 10% of your total trip cost. If your trip costs $5,000, expect to pay $250 to $500 for coverage.

A travel insurance estimate by ValuePenguin found that the average cost for an international trip is $3,242 per person and has a duration of 12 days. And 70% of that cost is pre-paid. Travel insurance will protect that investment.

ValuePenguin also stated that comprehensive travel insurance will cost 56% more than a basic package.


How To Calculate the Cost of a Trip

Calculate the cost of a trip

You calculate the cost of the trip like this:

1. Include all trip costs that are not refundable. That might include resort deposits, airline tickets and cruise ship packages.

2. Add in any ground transportation that is pre-paid.

3. Include all non-refundable costs, such as tour guides, boat excursions, tennis lessons, meals and retreats.

4. Add in amusement park tickets, concerts, convention costs and all pre-paid events.

5. Figure in cancellation costs and penalties for not showing up at a resort or a cabana on a beach.

Add all these items together to find the sum of your trip.


Coverages That Will Add or Subtract  to Travel Insurance Costs

If you decline trip cancellation coverage, you will pay less for your travel insurance.

Travel insurance to cancel for any reason can add significant costs to a policy. Cancel for any reason coverage reimburses you for pre-paid trip payments. You’ll have only about 30 days to request this coverage. The clock starts ticking the moment you make your initial trip payments. Travel insurance to cancel for any reason will add about 40% to your travel premium.

Trip interruption or cancellation will be governed by limits that the insurer will pay you. Delays, lost baggage and medical emergencies are calculated differently.

If you want more emergency medical coverage, expect to pay more. For limited medical coverage, you will pay less.

You will pay more to add optional coverages to insure things like business and sports equipment.

Remember, you have the option to insure all of your trip or only specific parts.


Bare Bones Coverage

You can insure only resort accommodations and lost or damaged luggage if you so choose. That won’t cost much. If your plan is to live out of your carryon bag and sleep on the beach, forget about resort and baggage insurance. However, you can buy lost limb coverage – it’s called dismemberment – should a shark bite off your arm.


Buy Travel Insurance Online

How much for travel insurance begins by calculating the total cost for your trip. This will give you an estimate. Once you have an estimate, consider adding optional coverage. This may include insuring sports equipment or increasing emergency medical care limits.

In the end, you’re the boss when buying travel insurance. Spend enough to cover all your family members and their needs. And avoid spending for coverage you don’t need. Work with the insurance agent by asking questions.

 

  1. We are considering a trip this summer to Europe. I’ve heard many people suggest travel insurance. I guess I never considered it and didn’t know much about it. This article answered several of my questions on how to figure out how much it will cost. You said it covers from the time I leave home until I get back home. I guess, depending on the package I get, that will tell me what exactly is covered. Do you have any suggestions for companies?

  2. Thanks for this enlightening information. I am a snowbird who drives down south every winter. As I get older, I have noticed my premiums going up. And I did not even think of getting insurance for the things that I bring with me so your information has been very helpful to me. I may now be able to negotiate a slightly better price now that I know exactly what I need.

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