he average cost of travel insurance is 5% to 6% of your trip costs, according to Forbes Advisor’s analysis of travel insurance rates. For a $5,000 trip, the average travel insurance cost is $228, and the range of rates is from $154 for a basic policy up to $437 for a policy with generous coverage .
The cost of your trip has a significant impact on how much the cost of travel insurance. For example, the average cost of travel insurance is only $61 for a $1,000 trip but a tad over $1,200 for a $20,000 trip. With either trip, the travel insurance averages 6% of the trip cost. If you want the vital protection that the best travel insurance provides, budget for it as you make your trip plans.
Forbes Advisor analyzed quotes for 23 different travel insurance policies to determine average rates for various trip costs, ages and number of travelers. We also analyzed 16 travel insurance policies with and without “cancel for any reason” (CFAR) coverage to determine average rates.
Average Cost of Travel Insurance by Trip Cost
The cost of your trip is a primary rating factor for travel insurance companies. The more you spend on your trip (and insure the trip for), the higher the potential claim pay out is for the travel insurance company.
Forbes Advisor analyzed travel insurance plans at various price points for a 30-year-old female traveling from California to Mexico for a 14-day trip.
Our analysis of trips costing $1,000 to $50,000 found that the average travel insurance cost is usually 5% to 6% of the trip cost, with 6% the average
|
Trip cost |
Average travel insurance cost |
Travel insurance cost as % of trip cost |
|
$1,000 |
$61 |
6% |
|
$2,500 |
$120 |
5% |
|
$5,000 |
$228 |
5% |
|
$10,000 |
$512 |
5% |
|
$20,000 |
$1,204 |
6% |
|
$30,000 |
$1,848 |
6% |
|
$50,000 |
$3,091 |
6% |
The range of insurance costs varies greatly depending on the policy’s level of benefits. For example, in our review of travel insurance plans for a $2,500 trip, we find the average cost is $120 but observe rates ranging from $76 for a basic policy to $240 for a policy with more perks and protections.
Average Cost of Travel Insurance by Age
Your age matters to travel insurance companies, but age tends to affect the rates of those age 60 and older the most. Our analysis reveals the average travel insurance cost for someone age 80 is $683 more than the average cost for a 20-year-old.
If you’re a senior planning a trip, you’ll need to budget, on average, an additional 8% to 18% of your trip cost to cover a senior travel insurance policy.
|
Age of traveler |
Average travel insurance cost |
Travel insurance cost as a % of trip cost |
$ difference from age 20 |
|
20 |
$224 |
4% |
|
|
30 |
$228 |
5% |
$4 |
|
40 |
$294 |
6% |
$50 |
|
50 |
$310 |
6% |
$86 |
|
60 |
$420 |
8% |
$196 |
|
70 |
$555 |
11% |
$331 |
|
80 |
$907 |
18% |
$683 |
Average Cost of Travel Insurance by Number of Travelers
The number of people traveling and included on the insurance plan plays a part in what you’ll pay for travel insurance. The more people on the policy, the higher the rates will be, but our analysis finds it causes only a minor increase.
We analyzed rates for a single traveler, a couple and a family of four leaving from California to Mexico on a 14-day trip with a cost of $5,000. The travel insurance costs didn’t substantially go up even as the number of travelers grew. Rates went up only around $30 for a family of four compared to a single traveler.
Our review of average costs finds a single 40-year-old female traveler pays the least for travel insurance, while the two 40-year old adults (one male, one female) pay not even $20 more for their plan. The family, consisting of two 40-year-old adults (one male, one female) with two children ages 8 and 10, pay only $12 more than the couple.
|
Traveler type |
Average travel insurance cost |
$ difference compared to single adult |
|
Single adult |
$294 |
|
|
Two adults |
$311 |
$17 |
|
Two adults and two children |
$323 |
$29 |
Article ID: 815
Created: October 21, 2024
Last Updated: October 21, 2024
Author: basavaraj.badnikai
Online URL: https://agentx-phpkb-dev.hgsdigital.com/article.php?id=815