When you embark on a new adventure, your travel budget is expected to cover all your trip costs, from your transportation and accommodation fees to your desired dining and excursion expenses — but what about any unexpected costs, like accidents or emergencies? If you don’t budget correctly, those unexpected costs must be paid out of pocket. Unless, of course, you have reliable travel insurance.
Travel insurance is meant to protect you from unforeseen costs caused by surprise incidents. But how much does travel insurance typically cost and is travel insurance worth the cost? In this comprehensive guide, we’ll explore the factors that determine your all-in travel insurance pricing, including industry-insider tips on how to reduce your travel insurance cost to maximize your travel budget.
Let’s get started!
Let’s start with the basics: What are the factors that affect the price of travel insurance? Travel insurance pricing is influenced by multiple factors, making each policy’s total cost unique to each traveler and their travel plans. However, there are two primary factors that determine travel insurance cost: age and total trip cost. Here’s a look at why, plus other factors that may impact all-in pricing:
● Age of travelers. Senior travelers often encounter higher travel insurance pricing due to an increased risk of health issues, a higher likelihood of extended family which could also lead to an insurance claim, and more in-depth medical care in the event of an emergency.
● Total trip cost. Travel insurance is designed to reimburse travelers for any prepaid, nonrefundable trip costs in the event of a covered cancellation or delay, so more expensive trips often cost more to insure.
● Total trip duration. Trips longer than one month tend to increase total travel insurance costs, as there’s a greater risk of out-of-town emergencies the longer travelers are away from home.
● Travel destination. High-risk destinations, such as those experiencing political tension, ongoing security threats, or travel advisories, may increase the price of travel insurance.
● Types (and levels) of coverage. A basic travel insurance policy with medical coverage will cost less than a comprehensive plan that also includes trip cancellation and baggage loss.
● Pre-existing medical conditions. Travelers with pre-existing conditions, such as cancer and diabetes, may increase travel insurance costs as they require more extensive coverage.
● High-risk activities. Those planning to partake in high-risk activities, such as skiing or scuba diving, require pricier adventure travel insurance due to the higher risk of injury.
The exact price of travel insurance varies according to the factors listed above; however, the average cost of travel insurance ranges from 4% to 8% of the total trip cost. For example, if your all-in cost for an upcoming trip — including transportation, lodging, and activities — were $3,000, your travel insurance policy would likely cost between $120 and $300, depending on your trip details.
Similarly, a short domestic trip is almost always cheaper than a longer international trip. With smaller expenses for domestic transportation and local lodging, the all-in trip costs are often lesser, bringing down the cost of insurance. Plus, you’re less likely to require international insurance upgrades, such as medical evacuation insurance, when traveling domestically, reducing insurance costs.
Speaking of insurance upgrades, more comprehensive travel insurance coverage will be costlier. Benefits like trip cancellation insurance cost more because they enable you to recoup up to 100% of your pre-paid, non-refundable trip expenses in the event you must cancel for a covered reason. Similarly, if you require coverage for several travelers, including children or seniors, overall costs will be higher.
So, are there ways to reduce travel insurance costs? Yes! There are ways to save money while still obtaining the necessary coverage to remain protected while traveling away from home. Here are three tips to score travel insurance deals that safeguard your travel plans (and your expenses).
You can lower your travel insurance cost by not paying for unnecessary coverages. Before selecting your coverage, assess your trip, including your destination and any local insurance requirements. Likewise, you may also choose to nix extra baggage coverage if you’re not traveling with expensive equipment.
Rather than settle on the first cheap travel insurance policy you can find, use comparison websites to gauge different insurance providers’ best rates and coverage options. Travel insurance comparison tools like TravelInsurance.com, SquareMouth.com, CompareCoverage.com, and InsureYonder.com make it easy to compare the cost of multiple plans simultaneously.
If you expect to travel more than twice this year, invest in a yearly travel insurance policy rather than multiple single-trip policies. For frequent travelers, purchasing an annual plan rather than several single-trip policies is often more cost-effective and easier to manage.
Readers beware: The best travel insurance rates do not always come from the best travel insurance providers. While budget travel insurance sounds like a great idea from an economical standpoint, it’s crucial to select a provider with reliable service and comprehensive coverage. Consider these five tips for travel insurance comparison to best evaluate your potential providers:
When on the hunt for the best travel insurance rates, remember that travel insurance costs will be roughly 4% to 10% of your total travel expenses. If the travel insurance pricing seems too good to be true, be sure to evaluate elements like the coverage options, customer service abilities, and authentic customer reviews. It’s wise to err on the side of caution for a more reputable provider.
To explore some of the best travel insurance rates on the market — with the customer reviews to match — compare Aegis Go Ready Choice plans today.
This amazing feature allows our clients to potentially avoid fronting their own monies and going through a claim reimbursement process. By contacting Aegis immediately when experiencing any covered event such as a flight disruption, illness, or injury, our team can coordinate the solution and pay for it on the spot. This includes booking or rearranging flights and hotels, coordinating medical care, or arranging a medical evacuation or repatriation. Learn More →
Aegis General Insurance Agency Inc.
Travel Insurance Division
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