Table of Contents
Our experts answer readers’ insurance questions and write unbiased product reviews (here’s how we assess insurance products). In some cases, we receive a commission from our partners; however, our opinions are our own.
- The average travel insurance premium this week is $304.36, down about 0.76% from last week.
- For travel in the United States, the average premium is $97-$400.
- Travel insurance protects against delayed baggage, trip cancellation, and more.
The average cost of travel insurance fluctuates throughout the year, based on demand and whether or not school’s in session. Also keep in mind that where you’re traveling and how many people are taking the trip will affect your exact premium.
Travel insurance weekly rates at a glance:
- Average premium: $304.36
- Average trip cost: $6,292.23
- Average trip length: 16 Days
What is travel insurance?
Travel insurance plans can cover both domestic and international travel. It could protect against something as familiar as delayed baggage (experts estimate 85% of lost luggage is returned to its owner within 48 hours) or as complicated as trip cancellation.
The benefits and limitations of travel insurance vary based on the company and plan. Above all else, this insurance coverage offers peace of mind.
See Insider’s picks for the best travel insurance companies »
Insider’s Featured Travel Insurance Companies
Some credit cards offer a limited amount of travel insurance annually. If you need clarification on what your credit card offers, contact your provider to verify. These plans are great for cancellations and interruptions but may not cover more costly losses associated with unexpected medical expenses or emergency evacuations.
Individual travel insurance plans include this and much more. Travel insurance protects travelers from the unexpected when away from home.
Average cost of travel insurance by most popular destinations
Some countries are naturally more expensive travel destinations due to higher flight and lodging costs, which could increase travel insurance costs. Travel insurance will generally cost 5% to 10% of your total trip price, according to SquareMouth.
Here’s how the prices stack up:
When are people buying travel insurance?
According to an AAA travel survey, 88% of travelers say that reimbursement after a trip cancellation is the most valuable benefit of trip insurance.
According to data gathered by SquareMouth in the last six months, travelers tend to purchase trip cancellation travel insurance 53 days before their trip. Meanwhile, travelers without trip cancellation insurance will buy a policy approximately 16 days before their trip. Regardless of when you buy, cancellation protection can kick in to protect you against the unexpected.
Average cost of travel insurance by age
A traveler’s age is a significant factor in determining the cost of travel insurance. The older a traveler is, the higher travel insurance premiums are. For instance, a senior traveler may need more insurance for health-related emergencies than a millennial.
When calculating your travel insurance premium, travel insurance providers consider the likelihood of a medical emergency.
What does travel insurance cover?
Travel insurance can help reimburse you for non-refundable parts of your trip or help you if you’re injured or face an emergency.
Travel insurance policies cover six main things:
- Trip cancellation or interruption
- Trip delays
- Medical costs while traveling
- Baggage damage, delays, or loss
- Emergency transportation
- Rental car damage
If you have a credit card, you may already have access to some of these coverages without purchasing a separate travel insurance policy. For example, many airline credit cards and some of the best travel credit cards offer trip cancellation, delay coverage, and baggage coverage.
For example, the Chase Sapphire Preferred and Chase Sapphire Reserve cards both come with some travel coverage, including trip cancellation, interruption, and delay coverage, baggage delays, rental cars, accidental death, and dismemberment coverage.
Before getting a travel insurance policy, making sure the terms match your needs or concerns is essential. During the COVID-19 pandemic, that’s especially important – each travel insurance company has unique reimbursement and cancellation rules due to this event. So read the fine print of any travel insurance policy before purchasing.
Is travel insurance worth it?
Many customer reviews talk about peace of mind. Travelers didn’t have to use travel insurance, but they’re so glad they had it. Occasionally, travelers must file a claim for lost luggage, medical or hotel expenses, and more. This is the true test of value for travelers’ insurance.
When travel insurance companies have online claims processing, phone or chat-based customer support, and pay claims quickly based on purchased plans, it’s worth it. However, when the claims process is overly burdensome, taking weeks or even months, the value of travel insurance may not be as clear.
The adage “you get what you pay for” applies when shopping for the best travel insurance companies. The more you’re willing to spend, the more comprehensive your travel insurance coverage can be. Trusted providers also offer faster claims and better customer service. Insider recommends comparing at least three quotes to find competitive rates and high customer satisfaction ratings to cover your next trip.
Travel Insurance Rates FAQs
Travel insurance rates through most providers fall between 4% and 8% of the total trip cost. Like the cost of flights, cruises, etc., rates may vary substantially based on the season, your original location, your destination, and other factors.
Travel insurance covers the unpredictability of life, and this could include larger incidents like the COVID pandemic, political unrest, or large winter storms along with more common issues like lost luggage and unexpected accidents while on the road.
You can buy travel insurance online through provider websites. We recommend going through broker sites like Squaremouth to get multiple quotes for easy comparison online.
Travel insurance should make sense for your travel plans. The higher your travel costs, the more coverage you’ll want. Basic cancellation and medical coverage are essential for big trips. If you plan to travel in the US, you should consider extra auto protection. Depending on the company, you may also find niche options like sports equipment and pet insurance.