How Much Does Travel Insurance Cost in 2025?
Key Takeaways:
- Squaremouth data reveals travel insurance costs $21 per day, with premiums averaging $311 per policy with an average trip length of 15 days
- Comprehensive travel insurance plans typically cost between 4-10% of your prepaid, non-refundable trip costs
- Travel insurance companies will consider your age, travel expenses, trip length, coverage needs, and other risk factors when determining premiums
How Much is Travel Insurance in 2025?
So far in 2025, the average cost of travel insurance is roughly $21 per day. This is based on exclusive Squaremouth sales from this year. Travelers spend $311 on travel insurance on average, with an average trip length of 15 days.
This is a slight increase from 2024, where premiums averaged $308, due in large part to an increase in traveler spending. A recent Squaremouth survey revealed that over 50% of travelers anticipate spending more on trips this year. Trip cost is one of the biggest determining factors when calculating the cost of travel insurance.
There are many other factors that contribute to rising travel insurance prices. Follow along as we break down how your trip details may impact the premiums you receive when getting quotes.
Factors That Determine the Cost of Travel Insurance
Travel insurance premiums are primarily determined by five key factors: your total trip cost, the age of each traveler, the length of your trip, your coverage requirements, and the type of policy you choose. Additional details like your travel destination, add-ons you choose to purchase, and even your state of residence can also influence your premium.
Here’s a breakdown of how each factor will play a role in determining the cost of travel insurance for your upcoming adventure:
- Total Trip Cost: Comprehensive travel insurance plans are designed to reimburse your travel expenses in the event your trip is unexpectedly cancelled or cut short. Trips with high amounts of prepaid, non-refundable travel expenses are typically more expensive to insure.
- Traveler Ages: Older travelers usually pay higher premiums due to increased health and medical risk. The number of travelers in your party that you are protecting will also impact how much you spend on travel insurance.
- Length of Travel: Providers will use your departure and return dates to determine your coverage period. Longer trips tend to cost more to insure because they carry a higher chance of travel disruptions.
- Coverage Amounts: Policies with higher coverage limits, especially for medical benefits, come with higher premiums as they offer more robust financial protection.
- Policy Type: Single-trip travel insurance is typically more affordable than annual travel insurance for infrequent travelers. But, annual plans can be cost-effective if you travel at least three times a year.
Now let’s examine the financial impact that these factors have on travel insurance premiums.
Average Cost of Travel Insurance by Age
Age is one of the top factors that affect the cost of travel insurance. The chart below shows a travel insurance price comparison broken down by generation.
Senior travelers and children cost notably more to insure on average due to increased health risks at these ages. Millennials pay the least on average for travel insurance but also spend less on their trips which contributes to paying a lower average price for travel insurance.
| Generation | Average Cost Per Day | Average Premium | Average Trip Length | Average Trip Cost |
| Gen Alpha(2013 or later) | $17.98 | $233.79 | 13 | $5,682.82 |
| Gen Z(1997-2012) | $13.22 | $211.53 | 16 | $4,882.85 |
| Millennial(1981-1996) | $12.78 | $178.92 | 14 | $3,987.18 |
| Gen X(1965-1980) | $18.64 | $260.91 | 14 | $5,124.73 |
| Baby Boomers(1946-1964) | $28.04 | $448.71 | 16 | $5,629.47 |
| Silent(1945 or before) | $40.48 | $688.09 | 17 | $5,907.54 |
These figures are based on quote and sales data from the past year (May 14 2024 – May 14 2025) that included a member of the generations listed above.
Average Cost of Travel Insurance by Plan Type
Medical travel insurance is the cheapest type of travel insurance you can buy.
Medical policies often focus mainly on offering essential medical coverage which makes them more affordable than comprehensive plans with wide-ranging protections.
While more expensive, comprehensive travel insurance plans are the most robust type of coverage you can purchase for a trip. In addition to covering unexpected medical expenses, comprehensive plans also cover your prepaid, non-refundable travel expenses in the event your trip is cancelled. In other words, these plans will reimburse your trip costs if you’re forced to cancel your trip due to an unforeseen illness, injury, death in the family, or other covered reason.
The figures below are based on quote and sales data from the past year (May 14 2024 – May 14 2025).
| Type of Policy | Average Cost Per Day | Average Premium | Average Trip Length |
| Medical-Only Travel Insurance | $4.53 | $90.57 | 20 |
| Comprehensive Travel Insurance | $29.57 | $414.14 | 14 |
Average Cost of Travel Insurance by Destination
Below is a list of the 10 most common destinations for travel insurance customers and the average cost of travel insurance policies by destination. These figures are based on Squaremouth sales data from the past 12 months.
Travelers to Mexico spend the least on travel insurance, while travelers to Italy spend the most. Interestingly, the Bahamas has the highest cost per day of any of the top travel destinations.
| Location | Average Cost Per Day | Average Premium | Average Trip Length |
| Mexico | $19.27 | $173.45 | 9 |
| Bahamas | $25.30 | $177.14 | 7 |
| United States | $20.56 | $246.74 | 12 |
| Canada | $20.53 | $266.98 | 13 |
| United Kingdom | $15.96 | $287.21 | 18 |
| Japan | $18.73 | $304.67 | 18 |
| Spain | $17.21 | $327.16 | 19 |
| France | $17.75 | $337.06 | 18 |
| Portugal | $17.84 | $339.02 | 19 |
| Italy | $22.93 | $366.89 | 16 |
Optional Coverage That Will Increase Travel Insurance Costs
Many travel insurance policies give you the option to enhance your coverage through “add-ons” or policy upgrades. Since these are optional, they carry an additional cost. Popular add-ons include Cancel For Any Reason, Pre-Existing Condition, and Rental Car Damage.
Cancel For Any Reason
Cancel For Any Reason (CFAR) partially refunds your trip payments if you cancel for a reason not explicitly covered by your policy. This benefit is only available to eligible travelers that purchase their policy within the time-sensitive period, which is typically 10-21 days after your initial trip deposit.
Adding CFAR to your policy can increase premiums by about 40-50%. In 2025, the average CFAR policy sold through Squaremouth cost travelers $696.
Pre-Existing Condition
While not technically an add-on, Pre-Existing Condition coverage is a type of coverage that is automatically applied to eligible travelers at no additional cost. With that said, there are multiple eligibility restrictions that must be met that often vary by provider. In most cases, you will need to insure 100% of your trip costs and purchase a plan within the time-sensitive period.
Rental Car Damage
Coverage for Rental Car Damage is an optional add-on that many providers offer. This benefit can cover the cost of damage or theft of a rental vehicle during your trip. Rental Car Damage protection is not known to significantly increase premiums, but is often less affordable and less robust than dedicated auto insurance policies.
Does A Higher Premium Mean Better Coverage?
No, high premiums do not always equate to better protection. When choosing between similar policies that meet your coverage needs, we always recommend opting for the less expensive plan.
Purchasing travel insurance through sites like Squaremouth allows you to see how plans from the best travel insurance companies compare when it comes to price and coverage.
Shopping around for travel insurance can also help you find more affordable protection compared to plans offered through airlines, cruise lines, hotels, and other travel suppliers.
Bottom Line: Is Travel Insurance Worth It?
Travel insurance can be a worthwhile investment if you’re concerned about potential issues with your trip. Many travelers purchase insurance to protect their trip expenses, for international medical coverage, and general peace of mind in case something goes wrong before or during their journey.
On average, travel insurance claims pay out six times the cost of the policy premium, highlighting the potential value of having travel insurance.
To find the best policy at the best price, Squaremouth recommends getting travel insurance quotes from multiple providers. As always, it’s crucial to pay attention to the fine print and be aware of any exclusions in the plan’s details before deciding. By carefully selecting a comprehensive travel insurance policy, you can confidently travel protected against various potential risks.
FAQs: Travel Insurance Cost
Why are some travel insurance plans more expensive than others?
Travel insurance costs vary from one traveler to the next and depend on multiple factors, including your total trip cost, the number of travelers in your party, traveler ages, trip length, coverage requirements, and policy type.
Each travel insurance provider calculates premiums slightly differently to cater to its target demographic. This explains why you may find two companies offering nearly identical policies at different prices.
Do Higher Premiums Mean Better Coverage?
No, many affordable travel insurance plans offer great coverage. When choosing between similar policies that meet your coverage needs, we always recommend opting for the least expensive plan.
Purchasing travel insurance through sites like Squaremouth allows you to see how plans from the best travel insurance companies compare when it comes to price and coverage.
Shopping around for travel insurance can also help you find more affordable protection compared to plans offered through airlines, cruise lines, hotels, and other travel suppliers.
Methodology: How we found the average cost of travel insurance
As America’s largest travel insurance marketplace, Squaremouth hosts travel insurance policies from over 20 major providers in the industry. Using data from Squaremouth’s internal quoting and comparison engine, the Squaremouth Analytics team studies data from thousands of travel insurance policy sales to highlight the most notable industry trends.
Our data allows us to analyze real-time shifts in traveler behavior and to reveal the most common trends and data points among travelers.
To arrive at the average cost of travel insurance, we analyzed internal data from travel insurance policies sold from May 14 2024 – May 14 2025. This data was then segmented by destination, age group, and policy type.
These numbers are meant to serve as examples and are nonbinding. The actual cost you pay for travel insurance depends on the specific parameters of your trip and traveler profile. To see exact pricing for travel insurance for your trip, get a travel insurance quote and compare plans and prices from multiple providers at once.