the average cost of travel insurance in the usa. uu. is $95, according to an advisorsmith study of more than 50 travel insurance policies. this coverage is becoming more and more popular in the us. particularly as the pandemic disrupted travel plans in 2020, forcing many consumers to cancel or postpone planned trips. As travel increases, Americans are more interested in protecting their travel plans, creating a high demand for travel insurance.
average cost of travel insurance
Travel insurance premiums vary widely based on a number of factors, including the cost of the trip, the number of travelers, the age of the traveler, the mode of travel, and more. In our study of more than 50 travel insurance policies, we found that the average cost of travel insurance in the US. uu. $95 for a one week international trip. however, prices varied widely by insurer, with our analysis showing premiums ranging from a low of $39 to a high of $210.
To better understand how different variables, including the number of travelers, the age of the traveler, the cost of the trip, and the level of coverage, affect the premiums you end up paying, we conducted a study using estimates of quotes from a variety of insurers. We used a sample traveler profile for our study, who was a 30-year-old male traveler residing in California traveling to the UK for a one-week trip at a total cost of $2,500.
average cost of travel insurance by trip cost
The total cost of your trip will be a major factor in determining the price of your travel insurance premiums. The higher the cost of your trip, the more likely you are to pay in premiums, as any claim you file will have a higher chance of being more expensive than a lower-priced trip.
In our analysis, we found that premiums typically fell between 4% and 5% of the total cost of your trip. below you will find the average premiums broken down by the total cost of the trip.
average cost of travel insurance by age
Depending on your age and the ages of the people traveling with you, your insurance premiums can vary widely. In general, younger travelers can expect to pay less, while older travelers can expect to pay more, with travelers over 60 seeing big jumps in cost. this can be attributed in part to the fact that older travelers are at higher risk of injury or illness during travel.
In our analysis, we found that average prices ranged from a low of $92 for a toddler to a high of $805 for a centenarian. below you will find the average costs broken down by age.
average cost of travel insurance per number of travelers
The number of travelers on your trip also plays a role in the price of travel insurance. unsurprisingly, the more people on your trip, the higher the risk. And if you have older passengers with you on your trip, your premiums are likely to be higher. if you are a group of young and healthy travelers, your premiums are likely to be lower.
Below is our analysis of the average cost of travel insurance for travelers in different group sizes.
average cost of travel insurance by coverage level
Travel insurance plans offer different add-ons depending on the particular insurer and plan you select. Some plans are more comprehensive than others, and as expected, more comprehensive plans will cost more. Insurers will generally offer a few types of package plans, as well as various add-ons you can add to complement your coverage.
Below is a breakdown of the average cost of travel insurance by level of coverage. we take a look at basic, mid-tier and full coverage offerings. While the plans varied by insurer, they differed primarily by sublimits and risks covered.
What does travel insurance cover and what does it not cover?
Travel insurance coverage differs significantly depending on the insurer and the particular coverage you purchase. Each insurer has a variety of options and endorsements that you can add to your policy and packages policies differently, so when shopping for travel insurance, you’ll need to take a close look at exactly what the insurer offers.
Travel insurance typically provides coverage for the following:
- trip cancellations or interruptions
- travel delays or flight cancellations
- lost, stolen, damaged or delayed baggage
- medical expenses
- emergency medical evacuation
- rental car coverage
- hotel or cruise ship protection
- cost of the trip. The more your trip costs, the more it will cost to insure, since your claims are likely to be more expensive for a more expensive trip.
- Coverage limits. As with other types of insurance, the higher your limits, the higher your premiums, since the insurer is more likely to pay more for a given claim.
- deductible. The deductible amount is what you will have to pay out of pocket on a claim before the insurer begins to provide coverage. In general, the higher the deductible you choose, the lower your premium will be.
- coverage options. many insurers offer a number of additional options, including cancellation for any reason (cfar) coverage, rental car coverage and more. premiums will increase as you add more options.
- age of the traveler. The older the traveler, the higher the cost of travel insurance. this is to account for the fact that older travelers are at higher risk of getting sick or injured on a trip.
- number of travelers. The more travelers there are on your trip, the higher the cost of insurance.
- duration of the trip. The longer your trip, the higher your premiums. longer trips mean a higher chance of a claim.
In terms of exclusions, travel insurance typically does not cover pre-existing health conditions and activities that are considered risky.
More recently, many travelers have been wondering if travel insurance covers covid-19. Most travel policies will not provide coverage for trip cancellation due to fear of travel or if your trip is canceled due to travel being restricted or canceled by a government agency, health authority or travel provider due to covid-19. 19. however, if you become ill due to covid-19 before your departure, many insurers will cover trip cancellation. In addition, if you contract covid-19 on your trip, most insurers treat it like any other illness, offering medical and emergency coverage.
what determines the cost of travel insurance?
Travel insurance prices can vary widely based on a number of variables. Your best bet is to understand the type and level of coverage you’re looking for and collect quotes from a variety of insurers. To better understand what affects the premium you are quoted, here are some factors that affect the cost of travel insurance:
advisorsmith used quote estimates from 53 different travel insurance policies to determine average travel insurance costs. pricing estimates also made use of several sample traveler profiles.
For the main sample traveler profile, we used a 30-year-old male traveler in good health who planned to fly direct to the UK from California for a 1-week vacation. To determine how other variables influenced premium costs, we used multiple traveler profiles that varied by age, total number of travelers, and trip cost.