Factors Affecting Your Travel Insurance Costs

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!

What Factors Determine Travel Insurance Costs?

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.  

What is the Average Cost of Travel Insurance?

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.  

3 Tips for Reducing Travel Insurance Costs

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).  

1. Tailor Your Coverage

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.  

2. Compare Insurance Providers

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.  

3. Invest in Annual Plans

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.  

How to Compare Travel Insurance Providers

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:  

• Weigh all coverage options. Learn what’s covered under each plan and what exclusions apply, such as cancel for any reason (CFAR) insurance versus basic trip cancellation benefits.
• Explore customer service abilities. Understanding the types of customer support offered, such as Aegis’ 24/7 service, is vital for the ultimate confidence while abroad.
• Determine financial stability. You must select a travel insurance provider with reputable financial ratings to ensure they can cover their claims in the event of a potential incident.
• Read user reviews and feedback. It’s wise to look at other travelers’ reviews beyond the provider’s own website to find honest opinions, such as on social media or YouTube.
• Compare policy details. Beyond the travel insurance cost, compare details like deductibles, limits, exclusions, and the ease of making claims to judge which policy is best for your plans.  

Find the Best Travel Insurance Rates with Aegis

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.