How much does travel insurance cost?

How much does travel insurance cost? That’s a question a lot of travelers ask, along with whether it’s worth it. Here’s the whole story.

23 February 2011
How much does travel insurance cost?

Answer: Travel insurance vacation plans cost between 4-10% of the total trip cost.

Here’s an example: If your cruise costs $4,000, a travel insurance plan would cost between $160-$320.

Remember, this is the general range but keep in mind that basic ‘budget’ plans can be less than 4%, and premium plans can be over 12% of the trip cost (any expenses that are pre-paid and non-refundable)

The cost of travel insurance is based on these factors

The following are the main factors that affect the cost of the different travel insurance plans:

Vacation Plans (package plans)Travel Medical Plans
total trip costlength of tripage of travelersoptionslength of tripage of travelerspre-existing conditionsoptions

travel insurance package plan will provide protection for medical expenses, emergency evacuations, trip cancellations, loss of baggage and belongings.

Senior citizens and travelers with pre-existing medical conditions will be required to buy specific travel insurance plans. They will pay a little more because it’s deemed more likely that they will have to file a claim.

Travelers who choose a travel medical plan won’t have some of the package plan benefits, like trip cancellation coverage for example, but the plan cost can be as low as dollars per day.

Some travel medical plans also have selectable options that a traveler can add to the policy, such as hazardous sports coverage, that will raise the cost slightly, and deductibles, that will lower the cost slightly.

Optional coverages will affect the price as well

Travelers who add coverage options will pay a little more. Some of these options include:

  • “cancel for any reason”
  • “cancel for work reasons”
  • rental car coverage
  • identity theft protection
  • hazardous sports
  • deductibles
  • non medical evacuation coverage
  • concierge services
  • athlete/student coverage
  • golf course closure coverage
  • sports coverage

Adjustable coverage limits and deductibles also affect price

Many travel insurance plans have the option to select a coverage amount or deductible.

Per person coverage limits, such as the maximum for medical evacuation or life insurance, will affect the cost of the policy. If you choose $50,000 for life insurance protection versus $25,000, your policy will be slightly higher.

Some travel insurance policies apply deductibles to certain benefits, such as baggage coverage or emergency medical coverage. Similar to your health policy at home, a deductible is the out-of-pocket amount a traveler is responsible for before insurance begins picking up the remaining costs.

If you select a higher deductible amount, say $100 versus $50 for emergency medical, then your travel insurance plan will cost less.

Making adjustments to the plan to suit your comfort level is a great way to keep the cost of travel insurance affordable.


  • Travel insurance costs 4-8% of the total trip cost
  • Trip cost, trip length, and age of travelers are the main pricing factors
  • Policy add-ons or upgraded coverage limits can affect price

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Damian Tysdal

Damian Tysdal is the founder of CoverTrip, and he believes travel insurance should be easier to understand. He started the first travel insurance blog in 2006.

Damian Tysdal is the founder of CoverTrip, and he believes travel insurance should be easier to understand. He started the first travel insurance blog in 2006.