Average Cost Of Travel Insurance 2024 (2024)

The average cost of travel insurance is 4% 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 $200, and the range of rates is from $131 for a basic policy up to $291 for a policy with generous coverage. If you want the vital protection that the best travel insurance provides, budget for it as you make your trip plans.

Average Cost of Travel Insurance by Trip Cost

The cost of your trip has a significant impact on how much you pay for 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.

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 4% to 6% of the trip cost, with 5% 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 $108 but observe rates ranging from $75 for a basic policy to $170 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 $628 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 7% to 17% of your trip cost to cover a senior travel insurance policy.

For the 60-year-old traveler, average rates range from $261 for a basic policy to $492 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 $48 for a family of four compared to a single traveler.

Our review of average costs finds a single 30-year-old female traveler pays the least for travel insurance, while the two 40-year old adults (one male, one female) pay $24 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 $24 more than the couple.

Average Cost of Travel Insurance by Policy

Here are examples of travel insurance rates for a $5,000 trip to Mexico for a 30-year-old female. In addition to age and trip cost, the amount of coverage provided by a policy will affect what you pay. Policies with generous benefits cost more than those with basic coverage.

For example, the ExactCare policy from Berkshire Hathaway Travel Protection has $25,000 in travel medical benefits and $500,000 in medical evacuation insurance and costs $131, based on our analysis. The LuxuryCare plan has $100,000 in medical expense coverage and $1 million in evacuation benefits and costs nearly twice as much.

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” travel insurance can be an essential addition.

CFAR coverage is an upgrade that allows you to get partial reimbursem*nt (typically 50% or 75% of your prepaid trip costs) no matter the cause for the cancellation.

Our analysis of 14 policies finds the average cost of a policy without CFAR is $206 and a travel plan with CFAR is $300, a difference of $94. 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 reimbursem*nt, consider adding CFAR to your plan. You can see below how CFAR influences the cost of some example policies.

Factors That Affect Travel Insurance Cost

Unlike many other types of insurance, there are usually only a few factors that go into travel insurance pricing.

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	Age Your age is also taken into account in travel insurance pricing. That’s because older travelers tend to have a higher likelihood of filing medical claims.
	Amount of Coverage The more protection you buy, the more you’ll pay. For instance, if you opt for a “cancel for any reason” upgrade and generous travel medical insurance expense coverage, you’ll pay more.
	Trip Cost Being Insured 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.
	Number of Travelers More people on your trip means more insurance to cover everyone, increasing travel insurance costs.

Is Travel Insurance Worth It?

Travel insurance is worth it if you can’t afford to lose the money you paid for non-refundable trip costs if you have to cancel or cut a trip short.

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.

Methodology

To identify how much travel insurance costs, we analyzed rates for 19 travel insurance plans and determined average rates for various trip costs, ages and number of travelers.

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.

We established rates based on the following:

• A single traveler, a couple age 40 and a family of four comprising two adults age 40 and children ages 8 and 10.
• Ages 20, 30, 40, 50, 60, 70 and 80.
• Prices of 13 policies with and without “cancel for any reason” insurance to determine CFAR average rates.
• Trip costs of $1,000, $2,500, $5,000, $10,000, $20,000, $30,000, $50,000

Read more: How Forbes Advisor Rates Travel Insurance Companies

Travel Insurance Cost Frequently Asked Questions