How to Find the Best Value Travel Insurance Policy
When we travel, whether it’s across the country or around the world, there’s always a risk that our trips won’t materialize exactly as we planned them.
From significant delays to unexpected medical emergencies, there are countless disruptions that can derail a vacation, some more costly than others.
Travel insurance is designed to act as a financial safety net when you’re away from home, protecting you from hefty out-of-pocket expenses that arise from situations outside of your control.
However, finding a cost-effective policy can be challenging with so many options available. This guide will help you discover the best value travel insurance policy for your needs.
How Much Should Travel Insurance Cost?
Last year, in 2024, the average cost of travel insurance was $308.
As a rule of thumb, travel insurance premiums range from 4% to 10% of your total trip cost. Several other factors influence the price, including:
- Destination: Traveling to regions with higher medical costs may increase premiums.
- Trip Duration: Longer trips generally require higher coverage.
- Traveler Age: Older travelers often pay more due to higher health risks.
- Coverage Limits: Plans that offer higher financial protection often come at higher price points.
- Type of Coverage: Comprehensive plans with extensive benefits cost more than basic travel medical insurance plans.
- Add-Ons: Adding optional upgrades such as Cancel for Any Reason (CFAR) and Rental Car Damage Protection can add to the cost of your policy.
When budgeting for travel insurance, balance affordability with the coverage required for your trip’s specifics.
Tips to Find the Best Value Policy For Your Trip
The best travel insurance plan is one that fits your budget, fulfills your coverage needs, and provides peace of mind for the duration of your trip. To avoid overspending on your travel protection, consider the following tips:
Avoid Travel Insurance from Travel Suppliers
Travel suppliers like airlines or tour operators often offer travel insurance to customers as an add-on during the checkout process.
While these plans offer convenience and are often backed by reputable travel insurance companies, they are often limited in scope and high in cost. Policies offered through travel suppliers often lack key benefits like Trip Cancellation and Trip Interruption coverage.
To find better value travel insurance coverage, we recommend third-party travel providers that have strong track records of offering affordable trip insurance. See a full list here.
Check for Existing Travel Protection
Before purchasing a policy, review any existing coverage you might already have. For instance:
- Credit Cards: Some credit cards offer travel insurance benefits like trip cancellation, trip delay, and baggage protection. Check the terms to see what is included.
- Health Insurance: If you’re traveling within the United States or select international destinations, your primary health insurance policy may cover medical expenses you incur during your trip. Confirm its scope and whether it applies to your destination.
Using existing benefits can reduce the need for additional travel insurance or help you choose a policy that best fills any coverage gaps you may have.
Compare Plans From Multiple Providers
One of the best ways to find value when purchasing travel insurance is by comparing policies from various providers.
Online marketplaces and aggregators, like Squaremouth, allow you to evaluate how travel insurance companies stack up when it comes to:
- Coverage options
- Pricing
- Customer reviews
- Popularity among travelers
- Financial strength
Look for travel insurance providers with solid reputations and consider independent ratings to ensure you’re getting a reliable policy.
Other Cost-Effective Types of Travel Insurance
Single-trip travel insurance is by the far the most popular type of insurance on the market. This type of policy provides protection for the duration of a single trip, with coverage ending on your return date.
However, while common, single-trip plans may not always offer the most bang for your buck. Depending on your situation, you may want to consider one of the following other types of travel insurance.
Annual Travel Insurance
If you travel frequently, you may want to consider an annual policy. Annual, or multi-trip, travel insurance covers travelers for a 12-month period, regardless of how many trips they choose to take.
Typically, annual plans cost roughly three times as much as travel medical plans. With that in mind, these plans are ideal for frequent international travelers that take at least three trips per year.
Like single-trip insurance, annual policies include Emergency Medical coverage, reimbursement for medical evacuations, and other common benefits like Travel Delay and Baggage Delay coverage. However, annual plans rarely include Trip Cancellation coverage.
Group Travel Insurance
For families or groups traveling together, group travel insurance can offer significant savings. These plans provide coverage for all members of the group under a single policy, often at a reduced per-person rate compared to individual policies. Ensure the policy covers everyone’s specific needs.
Group travel insurance is typically designated for groups of 10 or more.
Final Thoughts
Finding the best value travel insurance requires careful consideration of your trip’s specifics and a comparison of available options. By avoiding supplier-provided plans, leveraging existing coverage, and exploring cost-effective alternatives like annual or group insurance, you can secure the protection you need without overpaying. Safe travels!