How Much Should You Pay for Travel Insurance?

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The average cost of a travel insurance policy varies depending on multiple factors. However, for comprehensive coverage, travelers should expect to pay between 5% and 10% of their total trip cost for a travel insurance policy. These policies will include coverage for cancellations, medical emergencies, travel delays, and luggage. In 2019, the average cost of a comprehensive policy with Trip Cancellation coverage is $354.

For a policy without cancellation coverage, travelers can expect to pay much less. In 2019, the average price for a policy without an insured trip cost is just under $78.

The Main Factors That Impact the Cost of Travel Insurance

The cost of a travel insurance policy varies by provider and by policy. Each provider calculates their premiums differently depending on their target demographic. However, in general, there are three main factors that impact the overall cost of a travel insurance policy.

Total Trip Cost
The total cost of your trip is one of the main factors that will impact your policy’s premium. The higher the trip cost, the higher the premium. The reason a higher trip cost results in a higher premium is because this amount is used to directly determine the amount of Trip Cancellation coverage your policy includes.

Age of Travelers
The age of the traveler’s included on a policy is another one of the primary factors that impacts the price of the policy. In general, older travelers will pay a higher premium. Each provider will structure their premiums differently to attract customers in their target age group.

Trip Length
Travel insurance policies are designed to cover travelers for the entire length of their trip. The price of a policy typically increases as the length of the trip increases.

Don’t Pay More Than You Need To

It’s a common misconception that a more expensive travel insurance policy will provide better or more reliable coverage. However, the rating and reputation of a travel insurance policy does not factor into the policy’s premium.

Squaremouth understands that it is natural to think more expensive is better. We’ve made it our job to make sure our customers don’t spend more than they need to on travel insurance, and we always recommend the least expensive policy that matches your coverage needs. This practice of “downselling” is one of our core values as a company.