Compare Cheap Travel Insurance Plans & Prices
Is Cheap Travel Insurance Any Good?
As with most inexpensive things in life, cheap travel insurance doesn’t always coincide with good travel insurance. That said, it’s still possible to find great, affordable travel insurance on any budget.
Understanding the factors that influence the final cost of your travel insurance policy can help you find good travel insurance on a budget.
For example, opting for medical-only travel insurance is one easy way to get a good policy without spending lots of money. Medical-only travel insurance plans are some of the most affordable policies on the market as they forego all the bells and whistles like full cancellation reimbursement, baggage coverage, etc.
Here is a look at what factors play into the final cost of travel insurance and which once you can adjust to reduce the cost of your policy.
What Determines the Cost of Travel Insurance?
Travel insurance premiums are determined by a wide range of factors pertaining to your trip, travel group, and coverage needs. Some factors are within your control to adjust as a means of reducing the cost of your travel insurance policy.
Trip Details & Itinerary
Trip cost is the biggest factor that determines the final price of travel insurance, but other information such as your trip length, destination, and itinerary will also impact your premium. You can reduce the cost of your travel insurance policy by leaving off refundable expenses from your trip cost at the time of purchase.
Traveler Demographics
Age plays a critical role in determining the cost of travel insurance. When gathering quotes, you will be asked to provide the current ages of everyone on your plan. Typically, premiums increase as you get older. Unfortunately, this is one factor that you cannot change as a means to save money on travel insurance.
Policy & Coverage Types
The type of policy you choose and the amount of coverage the plan provides also influence how much you will spend on trip protection. Both of these factors are within your control when buyin trip insurance and can be adjusted to get a cheaper plan. For example, if you’re on a budget, we recommend a travel medical plan or a bare-bones comprehensive policy as a way to save money.
Add-Ons & Upgrades
Many travel insurance providers allow you to enhance your protection through optional add-ons and policy upgrades during the checkout process. Common examples include Cancel For Any Reason (CFAR), Rental Car Damage Protection, and medical coverage upgrades.
While adding these extras can improve your covers, doing so will also increase the cost of your insurance. Typically, add-ons are only necessary if you have specific concerns that aren’t addressed by standard coverage.
What Does Cheap Travel Insurance Cover?
What your policy covers depends on the plan you choose. There are many cheap travel insurance plans that offer medical-only coverage for your trip, but some comprehensive plans can also be affordable depending on your trip details, demographics, and the coverages included.
For example, a comprehensive travel insurance policy will protect you from the moment you leave home until you return, covering essential expenses such as flights, hotels, and your personal belongings. This includes coverage for the following situations:
Emergency Medical
Covers hospital bills, doctor visits, prescription medications, ambulance rides, and other medical expenses incurred if you become sick or injured during a covered trip. We recommend plans with at least $50,000 in medical coverage.
Medical Evacuation
Covers the cost to medically transport you to the nearest adequate medical facility or back to your home country if required to treat an illness or injury. We recommend plans with at least $100,000 in emergency evacuation coverage.
Trip Cancellation
Covers up to 100% of your prepaid, non-refundable travel expenses if you’re forced to cancel your travel plans due to a covered reason, such as an unexpected illness, injury, or family emergency.
Trip Interruption
Reimburses any prepaid travel expenses you’re unable to use if you’re forced to end your trip early for a covered reason. Some plans will also cover additional costs incurred to make new travel arrangements back home.
Travel Delay
Reimburses meal and accommodation expenses if your flight, cruise, train, or other common carrier was significantly delayed, usually by at least three hours.
Baggage Loss
Covers the cost to replace personal items that are lost, damaged, or stolen at any point during a covered trip.
How Much Should Travel Insurance Cost?
Comprehensive travel insurance should typically cost between 4-10% of your prepaid, non-refundable travel expenses.
According to Squaremouth data, which factors in travel insurance policy sales over the past 12 months, comprehensive travel insurance costs $414 on average, with an average trip length of 14 days. This breaks down to roughly $30 per day.
With that said, if you don’t need to insure your travel expenses with Trip Cancellation, you can purchase a travel medical insurance policy. On average, this type of coverage costs just $4.60 per day, with some plans available for as little as $1 per day.
Begin a quote to find affordable coverage for your next adventure.
How Do I Get Cheap Travel Insurance?
Travel insurance doesn’t have to be expensive. With the right strategy in place, you can easily find great coverage that doesn’t break the bank.
Use the following 8 tips the next time you’re shopping for trip protection:
- Consider Medical-Only Insurance:
The number one tip for getting a cheap travel insurance policy is to forgo comprehensive cancellation coverage and opt for a medical-only travel insurance policy. These plans can cost as low as $1/day and can provide robust coverage for medical emergencies. Some of these plans may also include cancelation coverage for medical reasons only. - Check if You Have Existing Coverage:
Many people have some form of travel coverage through credit cards or similar memberships. For example, many credit cards offer cancellation reimbursement for flights and hotel bookings made with the credit card. If you already have certain types of travel coverage, you can save money by leaving these existing protections off your travel insurance policy which will make the plan much cheaper. - Compare Prices from Different Companies:
Travel insurance prices are standardized nationwide, so the only way to save on travel insurance is to compare plans and companies to see which offers the best value for your money. You can compare prices by getting quotes one by one or use a website like Squaremouth, which allows you to view policies, prices, and coverage from several companies at once to find the best deal. - Determine Your Coverage Needs:
It sounds obvious, but we recommend you avoid overinsuring yourself. It can be tempting to buy the highest level of coverage and all the add-ons, but taking a few minutes to research how much coverage you need can help you keep your plan focused and tailored to your exact requirements. This will translate to greater cost savings at the time of purchase. - Only Insure Non-Refundable Expenses:
Most travel insurance cancellation policies will only refund non-refundable trip expenses. Therefore, it makes sense to exclude these from the total trip cost you enter when buying your policy. This is similar to the credit card example, mentioned before. If you can get your purchases refunded without travel insurance, then it makes sense to exclude these from your policy, which will ultimately make the policy cheaper overall. - Avoid Policy Add-Ons:
Add-ons are completely optional and directly affect the final price of your policy. If you are trying to find a cheap travel insurance plan, we recommend forgoing optional add-ons to save money. - Consider Annual Insurance:
If you are a frequent traveler or plan to take several trips per year, you can often save money by purchasing an annual travel insurance policy. Annual travel insurance has a higher upfront cost but is cheaper in the long run when broken down to a per-day cost. These policies are mainly medical-only policies but some may include limited trip cancellation protections as well. - Purchase Group Insurance (If Applicable):
If you’re traveling with 10+ people, group travel insurance policies are the best option for saving money. These plans are often cheaper as a whole thanks to group rates which come with lower premiums per person.
Compare Quotes to Find the Best Travel Insurance for Cheap
The best way to get a deal on travel insurance is by comparing quotes from multiple providers. As a rule of thumb, we recommend getting quotes from at least three different travel insurance companies before purchasing a policy.
Click here to get instant quotes from 20+ of the nation’s top providers.
Is Cheaper Travel Insurance Worth It?
Travel insurance is always a worthwhile investment as it provides financial protection and peace of mind for the “what ifs” of travel. When buying cheap travel insurance, it’s important to ensure the policy covers you in all the ways you need it to. It may not be worth spending a little bit extra to secure solid coverage. In the end, insurance is always worth the expense when it comes time to make a claim and it comes out in your favor.
For context, let’s consider the financial impact of common trip disruptions if you were uninsured:
- Cancelled Trip: If you cancel your trip without coverage, you will lose all of your prepaid, non-refundable travel expenses. Purchasing a plan with Trip Cancellation coverage ensures all of your expenses are protected if you’re forced to change your plans at the last minute.
- Medical Emergency: Receiving medical attention in a foreign country can be expensive, ranging from a few hundred dollars to $20,000+. Some of the most affordable travel medical plans offer at least $50,000 in Emergency Medical coverage, helping you avoid any out-of-pocket expenses.
- Medical Evacuation: Emergency medical evacuations have been known to cost over $100,000. Even basic plans include coverage for medical evacuations, saving you from costly out-of-pocket medical expenses.
- Travel Delay: If your flight is delayed and you can’t travel until the following morning, your travel insurance plan can cover the cost of dinner, breakfast, and overnight accommodations. Coverage limits typically range from $100 to $5,000 per person, with some policies enforcing daily reimbursement limits.
FAQs: Cheap Travel Insurance
Is a More Expensive Travel Insurance Plan Better?
No, higher premiums do not always equate to better coverage. A common misconception is that the best plans are also the most expensive. However, the best travel insurance policy is one that fits your budget and meets your coverage needs.
At Squaremouth, one of our core values is to help travelers find the right policy for them at the lowest possible price. If you need assistance getting great coverage for less, our customer service team is just a phone call away.
Why are Some Plans So Much Cheaper Than Others?
Every travel insurance provider employs their own method for calculating premiums in an attempt to appeal to a specific target demographic. This explains why you may see a wide range of prices for plans that offer very similar coverage.
If you’re selecting between two or more plans that meet your unique coverage needs, we recommend opting for the lower-priced plan.
Can I Get a Discount for a Less Expensive Quote?
No, travel insurance is a highly regulated industry and it is illegal for providers to offer discounts to their customers. With this in mind, exercise caution if you come across promotional offers or coupon codes relating to travel insurance policies.
What is the Cheapest Type of Travel Insurance?
The cheapest type of coverage you can buy for a trip is travel medical insurance. Unlike comprehensive coverage, these plans do not provide any type of protection for your prepaid, non-refundable trip costs.
Because of this distinction, providers will not consider your travel expenses when determining premiums. This results in low-cost protection, with some plans costing less than $1 per day.
Is Travel Insurance Cheaper If I Purchase Earlier?
No, travel insurance premiums do not typically change depending on when you purchase. While purchasing a policy early is always recommended, it does not usually result in cheaper coverage.