The Average Cost of Travel Insurance in 2022 Is $248 Per Trip.
- Travel insurance covers the non-refundable parts of your trip and any medical expenses from an injury.
- The average cost of travel insurance is $248 per trip.
- Policy type, trip cost, destination, age, and the number of travels are factors that impact your premiums.
According to data gathered by Square Mouth — a travel insurance agency — the average travel insurance policy costs $248 per trip.
Several factors influence the cost of travel insurance. Older travelers, trips with more travelers, and spending more on your trip will increase your rates.
Average cost of travel insurance by trip cost
The more you spend on your hotels, flights, and pre-booked activities, and the longer you’re traveling, the more you’ll spend to insure your trip. “Travel insurance generally costs from 4% to 8% of the total trip. Cost is based on the length of trip, destination, and age of the policyholder,” according to the US Travel Insurance Association.
Source: US Travel Insurance Association
There are also differences in rates when you insure your trip versus when you don’t insure your trip. Policies with “no trip cost insured” refer to policies that only offer medical benefits covering emergency medical expenses that you incur during your trip.
Source: Square Mouth
Average cost of travel insurance by destination
When controlled for cost, the destination doesn’t change how much you’ll spend to insure your trip. It’s worth noting that some countries are naturally more expensive with flight and lodging costs, which could ultimately increase your travel insurance costs.
Here’s how the prices stacked up:
Source: Square Mouth
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. Many airline credit cards or travel credit cards come with trip cancellation, delay coverage, and baggage coverage. For example, the Chase Sapphire Reserve and Chase Sapphire Preferred cards both come with some travel coverage, including trip cancellation, interruption, and delay coverage, baggage delays, rental cars, accidental death, and dismemberment coverage.
However, before getting a travel insurance policy, it’s essential to make sure that the terms match your needs or concerns. During the COVID-19 pandemic, that’s especially important — each travel insurance company has unique reimbursement rules and cancellation rules due to this event. Read the fine print of any travel insurance policy before purchasing.