Considering Travel Insurance?
See How Much It Costs To Protect Your Next Trip
The average cost of travel insurance is 5% to 6% of your trip costs, according to Forbes Advisor’s analysis of travel insurance rates. For a $5,000 trip, the average travel insurance cost is $228, and the range of rates is from $154 for a basic policy up to $437 for a policy with generous coverage .
The cost of your trip has a significant impact on how much the cost of travel insurance. For example, the average cost of travel insurance is only $61 for a $1,000 trip but a tad over $1,200 for a $20,000 trip. With either trip, the travel insurance averages 6% of the trip cost. If you want the vital protection that the best travel insurance provides, budget for it as you make your trip plans.
Forbes Advisor analyzed quotes for 23 different travel insurance policies to determine average rates for various trip costs, ages and number of travelers. We also analyzed 16 travel insurance policies with and without “cancel for any reason” (CFAR) coverage to determine average rates.
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Average Cost of Travel Insurance by Trip Cost
The cost of your trip is a primary rating factor for travel insurance companies. The more you spend on your trip (and insure the trip for), the higher the potential claim pay out is for the travel insurance company.
Forbes Advisor analyzed travel insurance plans at various price points for a 30-year-old female traveling from California to Mexico for a 14-day trip.
Our analysis of trips costing $1,000 to $50,000 found that the average travel insurance cost is usually 5% to 6% of the trip cost, with 6% the average.
The range of insurance costs varies greatly depending on the policy’s level of benefits. For example, in our review of travel insurance plans for a $2,500 trip, we find the average cost is $120 but observe rates ranging from $76 for a basic policy to $240 for a policy with more perks and protections.
Average Cost of Travel Insurance by Age
Your age matters to travel insurance companies, but age tends to affect the rates of those age 60 and older the most. Our analysis reveals the average travel insurance cost for someone age 80 is $683 more than the average cost for a 20-year-old.
If you’re a senior planning a trip, you’ll need to budget, on average, an additional 8% to 18% of your trip cost to cover a senior travel insurance policy.
For the 60-year-old traveler, average rates range from $270 for a basic policy to $724 for a plan with more generous benefits.
Average Cost of Travel Insurance by Number of Travelers
The number of people traveling and included on the insurance plan plays a part in what you’ll pay for travel insurance. The more people on the policy, the higher the rates will be, but our analysis finds it causes only a minor increase.
We analyzed rates for a single traveler, a couple and a family of four leaving from California to Mexico on a 14-day trip with a cost of $5,000. The travel insurance costs didn’t substantially go up even as the number of travelers grew. Rates went up only around $30 for a family of four compared to a single traveler.
Our review of average costs finds a single 40-year-old female traveler pays the least for travel insurance, while the two 40-year old adults (one male, one female) pay not even $20 more for their plan. The family, consisting of two 40-year-old adults (one male, one female) with two children ages 8 and 10, pay only $12 more than the couple.
Average Costs for “Cancel for any Reason” Travel Insurance
Trip cancellation insurance is included in comprehensive travel insurance plans. It will reimburse 100% of the non-refundable money you lose if you cancel your trip for a reason listed in the policy.
If you’re worried that you may want to cancel your trip for a reason not listed in the policy, “cancel for any reason” (CFAR) coverage can be an essential addition.
“Cancel for any reason” coverage is an upgrade that allows you to get partial reimbursement (typically 50% or 75% of your prepaid trip costs) no matter the cause for the cancellation.
Our analysis of 16 policies finds the average cost of a policy without CFAR is $225 and a travel plan with CFAR is $337, a difference of $112.
On average, CFAR raises the cost of a travel insurance plan by 50%.
Deciding whether CFAR travel insurance is worth the cost will depend on your needs and risk tolerance. If you want the ability to call off your trip because you changed your mind and don’t want to go, but you still want some reimbursement, consider adding CFAR to your plan.
Travel Insurance With Cancel For Any Reason Cover
Recommended plan
Platinum
CFAR purchase deadline
Within 14 days
Recommended plan
iTraveledInsured LX
CFAR purchase deadline
Within 20 days
3
John Hancock Insurance Agency
CFAR purchase deadline
Within 14 days
3
John Hancock Insurance Agency
What Determines Travel Insurance Cost?
Several factors go into the cost of travel insurance. The level of benefits inside the travel insurance plan is one. For example, one plan may offer up to $25,000 for travel medical insurance while another may provide up to $500,000. Also:
Age of travelers: Generally, travel insurance becomes more expensive as you get older. This is because older travelers have a higher risk of getting sick or injured.
Number of travelers: More people on your trip means more insurance to cover everyone, increasing travel insurance costs.
Total trip cost: The amount you want to insure is also a main factor in your travel insurance cost. The amount you want to insure is the total cost of prepaid and non-refundable expenses, such as airfare, hotel, and excursions and special tours. Do not insure non-refundable costs, such as a refundable hotel room. You can’t make insurance claims for expenses that you can get refunded.
Trip length: A longer trip can cost more to insure because it increases the likelihood that you may file a claim.
Methodology
We analyzed rates for 23 travel insurance plans to determine average rates for various trip costs, ages and number of travelers. We reviewed 16 various travel insurance policies with and without “cancel for any reason” coverage to determine CFAR average rates.
The main traveler profile was a 30-year-old female traveling from California to Mexico for a 14-day trip with a cost of $5,000. To establish average rates for trip cost, we varied the trip costs.
Travel Insurance Cost Frequently Asked Questions
What are the cheapest travel insurance companies?
The five cheapest travel insurance companies are Travel Insured International, WorldTrips, AIG, Nationwide and Travelex, based on our analysis. We researched 39 policies from top-rated companies to find the cheapest travel insurance policies that still provide valuable benefits.
How much does travel insurance typically cost?
You should anticipate paying about 6% of your total trip costs for a travel insurance plan, according to our analysis of rates from some of the best travel insurance companies. For example, a $5,000 trip has an average travel insurance cost of $228.
Rates can vary substantially depending on the plan purchased. For a $5,000 trip, our analysis saw rates as low as $154 and as high as $437. What you’ll pay is based on several factors, such as your total trip cost, the benefits included in the plan and your age.
Is travel insurance worth the expense?
If you’re concerned about losing money on non-refundable payments and deposits if something goes wrong before or during your trip, then travel insurance is usually worth the purchase price. The more money you would lose, the more important trip insurance becomes.
Another factor to consider if you’re wondering if travel insurance is worth it: Your U.S. health plan generally may have limited or no coverage in other countries. If you’re traveling abroad, medical expense travel insurance can pay for medical costs, up to the policy limit.
Travel insurance quotes are free. You can compare quotes to determine if travel insurance is worth the expense in your specific situation. With quotes in hand, you can weigh the advantages of having travel insurance compared to the money you could lose without it.
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Source link : https://www.forbes.com/advisor/travel-insurance/average-travel-insurance-cost/
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Publish date : 2024-01-23 08:00:00
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