What determines how much travel insurance does cost for a trip?

How prices are calculated

SquareMouth says the average travel insurance plan costs about 6% of a typical trip’s total price. That works out to around $600 for a trip costing $10,000. The amount you pay depends on your trip and the coverage you choose. Policies that offer broader protection or add-ons cost more than medical-only coverage.

Trip and traveler factors

The trip’s total cost affects the price because insurance may reimburse major expenses if plans are canceled. Coverage for a $5,000 trip will generally cost less than coverage for a $30,000 trip.

Age and trip length also matter. Older travelers, particularly those over 65, may pay more, and extended trips usually cost more to insure; some insurers set maximum trip lengths.

Choosing a policy

Medical-only and single-trip plans are generally the more affordable options. They may suit people taking a short, low-cost trip who can cover losses from cancellation, delays or lost baggage themselves.

A more comprehensive policy may be worth considering for an extended trip or when travel is more likely to be interrupted, delayed or canceled. For multiple trips over the coming year, an annual plan may save money compared with buying single-trip policies; check its limitations, exclusions and requirements before purchasing.