Annual Travel Insurance Cost: 2025 Data Report

How Much Does Annual Travel Insurance Cost?

Industry reports show that annual travel insurance costs typically range from $100 to $500. Proprietary Squaremouth sales data is consistent with these reports, indicating that travelers spend an average of $297 on annual travel insurance. These plans provide travelers with convenient, multi-trip coverage for less than $1/day.

However, it's important to note that premiums can vary significantly. Squaremouth's data indicates the cost of annual travel insurance can range from $103 to $1,684, depending on multiple key factors. Squaremouth breaks down those factors below.

What Factors Influence the Cost of Annual Travel Insurance?

Several factors can sway the price of your annual travel insurance plan:

• Traveler Age: Older travelers often pay higher premiums due to increased health risks.
• Type of Coverage: Annual plans that offer cancellation coverage are typically more expensive.
• Coverage Limits: Policies with stronger coverage typically cost more

Follow along as we break down how each of these factors can impact your annual insurance premium.

How Age Impacts Annual Travel Insurance Cost

Typically, travel insurance costs increase as you get older. Since many insurers adjust pricing based on age-related health risks, older travelers can face significantly higher premiums.

As an example, the chart below showcases annual multi-trip travel insurance costs by age group over the past 12 months for the provider BCBS Global Solutions.

Based on the above example, travelers over 70 years old pay around 73% more for annual travel insurance than those aged 22-34. For this reason, we often recommend Trawick's flat-rate annual plans for older travelers looking to save on coverage, as these are the only annual plans on Squaremouth's platform that do not adjust their prices by age.

Providers who offer flat-rate pricing regardless of age, like Trawick, were excluded from the dataset above.

How Coverage Types Impact Annual Travel Insurance Cost

Age is not the only factor that influences the cost of annual travel insurance. Travel insurance premiums are also dependent on the type of coverage benefits you choose to purchase for your trip.

Most annual travel insurance plans prioritize medical coverage, while still providing benefits for other travel disruptions such as delays and lost luggage.

Select annual plans also include trip cancellation and trip interruption protection. However, these benefits come with a preset annual limit between $5,000 and $10,000, so they are not the primary focus of annual coverage.

Cost of Annual Travel Medical Insurance vs. Cost of Comprehensive Annual Travel Insurance

As shown in the example above, choosing a more comprehensive annual plan will increase your premium by roughly 51%. This can be worthwhile for frequent travelers who want some trip cancellation coverage throughout the year. However, for most travelers purchasing annual coverage, opting for a plan that prioritizes medical coverage is the most cost-effective option, saving you approximately $147 per year.

How Medical Coverage Limits Impact Annual Travel Insurance Cost

Coverage limits do affect the cost of an annual travel insurance policy, but not as significantly as your age or the coverage type you purchase. In general, however, higher coverage limits will result in slightly more expensive policies.

For example, below are two of the most popular annual plans on Squaremouth across the past 12 months, both offered by BCBS Global Solutions. Both plans offer the same benefits, but at slightly different coverage limits.

In the chart above, doubling coverage limits increases premiums by roughly 36%. While still a somewhat considerable increase in average premium, we've seen that traveler age and coverage types cause more significant spikes.

Annual vs. Single-Trip Cost Comparison

Annual plans have an average upfront cost of $297, costing less than $1 per day for multi-trip coverage over the course of a year. On a per-day basis, this is the most affordable coverage you can get.

Single-trip plans can be less expensive up front, as they only cover one defined trip, but these policies come with a higher daily cost.

Below is the cost of travel insurance by coverage type, broken down to a cost-per-day:

• Annual plans cost less than $1 per day
• Single-trip medical plans average less than $5 per day
• Comprehensive single-trip plans average around $23 per day

Based on the average cost of these policies, annual travel insurance is a better use of your money if your primary concern is having medical coverage for at least 3 international trips per year. If you only take one or two trips per year, a single-trip plan is likely the more affordable choice.

Additionally, if you value Trip Cancellation coverage, a comprehensive single-trip plan will be the best choice for you, despite a higher cost. These plans cover 100% of your trip expenses, while annual plans typically do not.

The table below further breaks down the cost of annual travel insurance versus single-trip travel insurance.

*While several providers offer annual plans with unlimited trips throughout the year, some, like Trawick, limit the number of covered trips, typically capping it at 10.

How to Find Low-Cost Annual Travel Insurance

Getting year-round multi-trip protection doesn't have to break the bank. Here are a few tips for finding affordable annual travel insurance plans that meet your needs.

1. Compare plans across providers: Annual plans aren't as common as single-trip plans, which means it's even more important to compare policies across multiple insurers. Not only will this help you find the best coverage for your needs, but it can also pay off in the form of savings if you compare prices. For example, Squaremouth's quote tool can help you compare annual travel insurance plans, prices, and coverage across several providers at once.
2. Check if you have existing coverage: If you have travel coverage via a credit card or another source, you may be covered for things like trip cancellations, travel delays, and luggage issues, as long as you used the card to book your trip. While this coverage isn't as comprehensive as a standalone travel insurance policy, it can help reduce what you need from an annual plan.
3. Don't over-insure yourself: Annual plans come with a variety of coverage levels. Only spend more for higher coverage amounts if you truly need it during your trip. For example, if you only take domestic trips, your existing health insurance may already provide sufficient medical coverage, meaning you might not need a plan with extensive medical benefits.

Is the Cost of Annual Travel Coverage Worth It?

Yes, when compared to the high out-of-pocket costs of common travel issues, annual policies are well worth the upfront expense. With an average price of $297, or less than $1 per day, it's one of the most cost-effective ways to stay covered if you plan to travel multiple times over the next 12 months. For that price, annual plans can protect you from thousands of dollars in out-of-pocket losses in the event of a medical emergency when traveling abroad.

To understand the value of travel insurance, here is a look at how much a common travel disruption could cost if you are forced to pay out of pocket.

Based on the table above, it's easy to see that paying for annual travel insurance is much less than the cost of paying out of pocket for potential travel-related mishaps. Therefore, it's safe to say that annual travel insurance is worth the expense.

That said, these plans are not right for everyone, especially if you only plan to take a couple of small trips per year or if protecting your trip cost is your top priority. So, we recommend comparing the cost of single-trip plans before deciding if annual insurance is best for you.

Methodology: Data from Actual Traveler Purchases

As America's largest travel insurance marketplace, Squaremouth hosts travel insurance policies from over 20 major providers in the industry. This allows us to analyze anonymized, aggregated pricing information in real-time from thousands of policies sold on our site to reveal the most common trends and data points among travelers. To arrive at the average cost of annual travel insurance for this article, we analyzed internal data from multi-trip travel insurance policies sold from December 1, 2024 to December 1, 2025.

Unlike other websites and media publishers who estimate the cost of travel insurance using a mix of hypothetical example quotes, our data is from actual travel insurance purchases made by Squaremouth visitors. The average premiums, costs, and prices we show in our content come from actual purchases, not hypothetical quotes. For annual travel insurance, these figures account for a wide variety of traveler demographics, trip parameters, and coverage options.

Why Trust Our Numbers?

Large media publishers often base their insurance cost figures on hypothetical traveler profiles, limited sample sizes, static point-in-time data, and quotes, not actual sales. While these can offer useful directional snapshots, they don’t reflect real consumer behavior or shifts in pricing over time.

In contrast, Squaremouth’s insights are based on real purchases made by real travelers. We provide anonymized sales data to give a much clearer picture of what travelers are actually paying for insurance today.

Because our data is tied directly to our travel insurance marketplace, we’re better equipped to provide cost insights across niche segments, making our averages more accurate, timely, and actionable for travelers seeking reliable pricing expectations.

Advantages of Squaremouth’s Data Approach:

• Real Sales Data, Not Sample Quotes:
  Because our data is based on verified insurance purchases, we offer far greater accuracy than those based on hypothetical quotes or limited sample sizes.
• Regularly Updated to Reflect Market Shifts:
  We track and update cost trends regularly to capture the fluctuations in policy prices brought on by seasonality, changes in demand, geopolitical events, and insurer policy changes.
• Highly Segmented Insights:
  Our data reflects the real purchase behavior of a diverse range of traveler demographics, destinations, and trip types, both domestic and international. Because our cost data is sourced directly from sales on our travel insurance marketplace, we can accurately break down cost metrics by specific subsets such as destination, traveler age, trip cost, state of residence, coverage type, filters used, and more.
• Holistic View of Travel Insurance Prices:
  Unless otherwise stated, our analyses encompass all levels of coverage, from basic medical-only policies to comprehensive coverage with add-ons, which gives a more complete picture of pricing.

For Media & Data Licensing Inquiries

Our cost data is freely available for journalistic and educational uses with proper attribution to Squaremouth. Please reference the data source at Squaremouth.com for any information used. For custom data access or licensing opportunities, please contact media@squaremouth.com.