What is the average cost of travel insurance?

What is the average cost of travel insurance?

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  • Travel insurance costs vary based on a few factors, but research by Business Insider found the average travel insurance policy costs $111.
  • Where you’re going has a very small effect on your cost, though insuring domestic trips does tend to be slightly cheaper. 
  • Your age does tend to have some effect on travel insurance pricing. After age 40, travel insurance prices tend to increase. 
  • The longer a trip, or the more people going, the more expensive a trip will be to insure. Generally, that’s simply because the trip costs more. 
  • See Business Insider’s top picks for travel insurance companies in 2020 »

According to data gathered by Business Insider, the average travel insurance policy costs $111 per trip. 

Business Insider gathered over 50 quotes from three top travel insurance companies — Allianz, World Nomads, and Travel Guard — for several sets of travelers, trips, and families.

The cost of travel insurance is mainly influenced by the age of the travelers, as travel insurance prices tend to increase with age. The number of travelers on your trip and the amount spent on your trip will also increase the amount you’ll spend to insure it. 

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. 

Business Insider gathered quotes for a 30-year old traveler traveling from New York to the United Kingdom, changing only the costs. Here’s how the average cost to insure the trip changed as the trip’s price increased. 

Pre-booked trip costs Average travel insurance cost
$2,500 $91.86
$5,000 $166.87
$10,000 $306.87
$15,000 $805.50

When controlled for cost, the destination doesn’t change how much you’ll spend to insure your trip. 

Business Insider averaged quotes from three different travel insurance companies for one week trips to countries all over the world, all with the same $2,500 price tag and starting from New York. Here’s how the prices stacked up:

Destination Average travel insurance cost
Domestic — California $77.80
United Kingdom $91.86
Thailand $91.63
Mexico $89.21
France $91.86
Israel $92.52
South Africa $91.86

Data shows that domestic trips are slightly less expensive to insure, but most international destinations tend to hover around the same average cost. However, it’s worth noting that some countries are naturally more expensive with flight costs or more expensive lodging, which could end up increasing your travel insurance costs. 

The older you are, the more travel insurance costs. 

Business Insider averaged quotes from three different insurers for the same $2,500 trip from New York to the United Kingdom for one single traveler of different ages. Here’s how the costs change with age:

Traveler age  Average travel insurance cost
20 $91.86
30 $91.86
40 $116.52
50 $116.52
60 $145.52

In general, the cost of travel insurance changes by the number of people on your trip, and it can have to do with the fact that the cost increases when you have more people. 

Business Insider averaged quotes from three travel insurance companies for several different traveling scenarios, from solo travelers to a five-person family. For each child, $500 was added to the original $2,500 trip cost. 

Here’s how the cost broke down among six different travel scenarios:

Travelers Average travel insurance cost
One adult $91.86
Two adults $125.71
One adult, one child $131.17
Two adults, one child $147.50
Two adults, two children $147.50
Two adults, three children $154.17

As the number of people one the trip and the cost increases, the cost of travel insurance also tends to increase. In part, that may be because more travelers mean there are more opportunities to cancel, but there’s also generally an increase in the trip’s price overall.

Travel insurance can help reimburse you for non-refundable parts of your trip, or help you if you’re injured or face an emergency during your trip. Travel insurance policies cover six main things: 

  • Trip cancellation or interruption
  • Trip delays
  • Medical costs while traveling
  • Baggage damage, delays, or loss
  • Emergency transportation
  • Rental 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 cardscome with trip cancellation and 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, as well as coverage for baggage delays, rental cars, and accidental death and dismemberment coverage. 

Before getting a travel insurance policy, however, it’s important 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 rules for reimbursement and trip cancellation due to this event. Read the fine print of any travel insurance policy before purchasing. 

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