Travel insurance usually costs between 4% and 10% of the total price of your trip. This means that a travel insurance policy could cost between $400 and $1,000 for a $10,000 trip. However, costs may vary depending on total trip expenses, age of traveler, length of trip, coverage limits and other factors.
More information: Travel insurance: what it covers, costs and how to choose the right policy
These are some examples of what travel insurance could cost if we consider that a travel insurance policy can cost between 4% and 10% of the total cost of your trip. But keep in mind that the actual cost of travel insurance can vary widely, depending on the type of coverage you choose, as well as your coverage limits.
For example, a basic plan that only focuses on travel medical coverage will likely cost less than a comprehensive plan that includes trip cancellation and interruption coverage in addition to medical insurance.
These factors can affect how much you pay for travel insurance.
The general rule is that the higher the cost of your trip, the higher the cost of your travel insurance. This makes sense because for policies with trip cancellation coverage, the travel insurance provider may have to reimburse you in full for non-refundable, prepaid travel expenses.
This is also verified in reality. After comparing several plans with Allianz Travel Insurance, we found that changing the total cost of the trip while keeping all other factors the same changed the cost of the plan.
In this example, you can see that as the cost of travel doubles, the cost of travel insurance does the same.
What happens if a traveler’s age increases on a travel insurance policy? Using the same criteria as the previous example, we obtain these results:
This time, the only factor we changed when researching the plans was the age of the traveler. As you can see, premiums have increased dramatically with increasing age.
This follows the line of thinking that older people tend to have more health problems, which increases the risk borne by insurance providers.
Generally, your destination is not as important in determining travel insurance costs as other factors. During our testing, we added different destinations while keeping other factors the same, such as age and total trip costs.
The result? Premium prices remain the same whether you visit England, Japan, Romania or even multiple countries on the same trip.
Still, coverage may vary depending on the provider and destination. For example, Allianz did not show coverage options if Russia and Belarus were chosen.
What happens if we adjust the duration of the trip? Would that change the cost of the policy?
Turns out it definitely is. Keeping other factors the same and only increasing trip length increased insurance premiums. In this case, they didn’t go up much, but they still went up.
Expert tip: When it comes to travel insurance policies, you can usually choose between annual or one-time trip plans. Depending on how often you travel, an annual plan could be more cost-effective than paying for insurance on each trip individually.
The amount of coverage you choose has a direct effect on how much you will have to pay for travel insurance. In the examples above, we showed a price range of how much you would have to pay for a particular trip.
That price range shows how much you would pay depending on the coverage you want. If you want more coverage, the cost goes up.
Since add-ons are optional, expect to pay more if you add them to your plan. This could include add-ons for high-risk or adventure activities, cancellation for any reason (CFAR) insurance, pet insurance, or additional coverage above what a plan typically offers.
In general, many standard policies include the same types of travel insurance coverage, such as medical emergency, emergency transportation, trip cancellation, trip interruption, baggage coverage, and trip delay.
The main difference between the policies is the amount of coverage you receive. For example, popular providers like Allianz and Travelex offer three standard plans each that generally cover the same things. However, more expensive plans offer higher coverage limits. For example, you could receive $1,000,000 in emergency medical evacuation and repatriation coverage instead of $200,000.
Therefore, the price difference between plans from the same provider often comes down to how much coverage you want to pay. Plus, you’ll always have to pay more to add optional add-ons, like CFAR coverage or an adventure activity upgrade.
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You need additional medical coverage: Domestic health insurance policies may not cover you if you travel abroad, which is why many international travelers choose to purchase a policy with emergency medical and dental coverage.
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Your non-refundable booking costs are high: Trip cancellation and interruption coverage exists due to unforeseen circumstances that cause trip interruptions or cancellations. You can also purchase CFAR coverage to ensure you get some money back if your trip is canceled.
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You plan to travel for an extended period of time: The longer you travel, the greater the chance that something will happen, like losing your phone or having to deal with a flight delay, that could result in additional travel expenses.
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You have refundable reservations: If most of your high-cost travel bookings are refundable, you may not need additional coverage.
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Your total trip costs are low: Coverage may not make sense if your total trip costs are low to begin with. In this type of situation, paying for travel insurance could be a waste.
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You do not need additional medical coverage: If you travel where your national health insurance policy operates, you may not need additional coverage.
Research and compare your options
There are many travel insurance providers and insurance policies to choose from, so be sure to carefully review and compare your options before purchasing a plan. This includes reviewing the terms and conditions of specific plans to see when coverage may apply, as well as familiarizing yourself with the claims process.
Keep in mind that just because two providers offer coverage that sounds the same, the differences could be hidden in the fine print.
Many of the best credit cards for travel offer built-in travel insurance benefits, such as car rental coverage, trip cancellation and interruption insurance, and baggage coverage. Specific benefits depend on the card, and you generally must pay for your travel reservations, such as flights and hotel stays, with your card to receive insurance benefits.
If you already have a credit card with adequate travel coverage, you may not need to spend money on an insurance policy. However, it may not hurt to have additional coverage in some cases, since credit card insurance doesn’t cover as many situations.
Any add-ons or upgrades to your cover, such as an adventure sports clause, will increase the price. If you think a standard policy offers enough coverage, save money by avoiding add-ons.
Depending on how often you travel, an annual plan may make more sense. Let’s consider an example of several quotes we checked with Allianz Travel Insurance.
For a quote for a single travel plan to England, travel insurance costs ranged from $467 to $751. For another quote for a single travel plan, this time to Japan earlier the same year, the costs were the same, ranging from $467 to $751. So, for a year with two trips, you could pay between $934 and $1,504 if you paid for individual plans per trip.
When reviewing Allianz’s annual plan options, we saw prices range from $138 to $510 for one year of travel insurance coverage. This is much cheaper than paying for coverage individually per trip, but there are a few things to consider.
The main difference between Allianz’s annual and one-trip plans is the amount of coverage you receive. The more expensive annual plan has less coverage in some cases than the cheaper one-trip plan. Depending on the type of coverage, some of the limits are higher.
Based on our findings, annual plans are much more cost-effective and convenient for frequent travelers, but whether they offer enough coverage should be considered.
If you already have credit card travel protections, do you need to purchase a travel insurance policy?
It depends. While travel credit cards like the Chase Sapphire Preferred® Card and the Capital One Venture X Rewards Credit Card offer high-quality travel coverage benefits, they may not provide all the coverage you want or need.
Here is the coverage you can find at Chase Sapphire Preferred:
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Rental Vehicle Collision Damage Waiver
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Baggage delay insurance
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Extended warranty protection
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Lost luggage refund
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Purchase protection
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Road dispatch
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Travel accident insurance
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Travel and emergency assistance services.
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Trip cancellation and interruption insurance
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Travel delay refund
It’s pretty comprehensive, but you’d have to dig into the finer details, like coverage limits, to see how it compares to a standard travel insurance policy.
For example, trip cancellation and interruption insurance can provide reimbursement for eligible travel expenses of up to $10,000 per covered person and up to $20,000 per trip. You can’t add more coverage to this credit card benefit, so if you want more coverage, you’ll need to purchase a separate policy.
Another thing to consider is whether this type of coverage is enough for you. At a glance, some of the missing coverages include:
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Protection of cell phone and personal items
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Emergency medical and dental coverage.
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Evacuation and emergency transportation insurance.
Keep in mind that you can find some of these coverage options on other credit cards, like the Chase Sapphire Reserve®, but you’ll have to pay a higher annual fee.
At the end of the day, if you already have a travel credit card with these benefits, you may already be covered on the travel insurance front, as long as you’re comfortable with the coverage. Going this route can save you money when purchasing a travel insurance policy.
If you think you need more cover, it is worth considering additional insurance in the form of a policy.
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A travel insurance policy could cost between 4% and 10% of the total cost of your trip.
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Some of the most important factors that influence the price of travel insurance include the total cost of the trip, your age, coverage limits, and optional add-ons.
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It is essential to compare and review policies from different providers to save money and find the best plan for your needs.
Editor’s note: Price quotes are accurate as of the date of publication.
Tim Manni edited this article..
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