Factors Changing US Travel Insurance Prices & Strategies for Saving
Understanding Travel Insurance Costs
Travel insurance protects your travel investment by providing medical emergency coverage, reimbursement for covered cancellations or disruptions, and other unanticipated situations. Travel insurance typically pays 4% to 12% of the planned non-refundable trip cost. Comprehensive coverage for a $3,000 trip can cost between $150 and $300 (Squaremouth). The final price is partly determined by trip cost, length, traveler age, coverage level, and optional add-ons.
Factors Influencing Travel Insurance Rates
Several factors greatly influence your travel insurance premium. Knowing these will help you appreciate the finest value.
Age of the Traveler
Premiums are considerably affected by age. Older guests usually pay more since they run more risk for health problems and possible claims (NerdWallet). Comparing stand-alone travel medical coverage with comprehensive plans is vital for anyone over 50 ( Rick Steves). For instance, a 35-year-old visiting Costa Rica for eight days would cost $48 for basic coverage; a 65-year-old on the same trip may pay $172 (TravelInsurance.com).
Pre-Existing Medical Conditions
Pre-existing conditions can affect costs since most insurers exclude them unless a particular waiver is bought (Travel Insurance Review). Usually, securing a waiver means buying the policy shortly after the first trip deposit and insuring the whole trip cost.
Destination and Healthcare Costs
High-cost destinations like the United States can increase rates (NerdWallet). Medical evacuation, potentially costing $30,000 to $100,000, dramatically affects medical coverage expenses (Squaremouth).
Trip Length and Cost
Longer and more costly travel usually increases premiums because of the greater risk. More extended travel raises the risk of needing medical attention or encountering other covered problems (Squaremouth). Higher journey expenses suggest more significant rewards for disruptions or cancellations.
Higher prices will apply to comprehensive plans, which include more significant coverage limits for medical bills, evacuation, baggage loss, and other advantages. Additional optional add-ons such as rental car damage coverage, adventure sports coverage, and Cancel For Any Reason (CFAR) coverage further increase expenses. Squaremouth notes that CFAR coverage might raise premiums by 40% to 50%.
Activities and Sports
High-risk sports like skydiving or scuba diving often call for specific coverage or endorsements, which raises the rate (Aig Travel Guard, World Nomads).
Tips for Reducing Travel Insurance Costs
Leverage Existing Coverage
Review current credit card, health insurance, homeowners/renters' insurance, and auto insurance coverage to prevent paying for double benefits (NerdWallet). Travel insurance benefits include trip delay, lost luggage, and even rental car coverage abound on many credit cards (NerdWallet).
Choose the Right Policy Type
For sporadic travel, choose single-trip policies; for frequent travelers, choose annual or multi-trip plans. Group or family coverage could be more reasonably priced for households. Whether your coverage is a basic one for domestic travel or a thorough one for overseas journeys (AXA Assistance USA), customize it to fit your particular needs.
Customize Coverage Wisely
Cover only what is required, eliminating needless additions. For example, leave pricey devices at home to save money on gadget coverage.
Compare Quotes from Different Providers
Review quotes from several companies considering age, destination, trip length, and desired coverage (Squaremouth, InsureMyTrip). Different providers will have somewhat different rates.
Purchase in Advance (But Not Too Early)
After making the first travel payments, get insurance to cover pre-existing conditions or use CFAR options within the designated period—usually 14 to 21 days. Delaying the purchase, however, can somewhat lower the cost for single-trip policies since it shortens the cancellation coverage period (MoneySuperMarket).
Consider Higher Deductibles
Although higher deductibles will reduce premiums, ensure you can comfortably afford the deductible should a claim be filed.
Travel During Off-Season
Traveling during the off-season might cut trip expenses, therefore affecting premiums.
Be Flexible With Destinations
Think of places with lower healthcare expenses and lower premiums (MoneySuperMarket).
| Company/Plan | Cost Factors | Coverage Types | Ways to Save | Additional Notes |
|---|---|---|---|---|
| Travel Guard (AIG) | Age, Trip Cost, Trip Length, Number of Travelers, Product Type (Essential, Preferred, Deluxe), Optional Add-ons (CFAR, Rental Car Damage, Adventure Sports Bundle, Increased Medical Expense Coverage) | Trip Cancellation, Trip Interruption, Medical Expense, Baggage Loss/Delay, Emergency Medical Evacuation/Repatriation, Travel Assistance, Optional Add-ons as listed above | Choose the Essential Plan for basic domestic trips. Get quotes and compare plans. Consider what’s covered by credit cards or existing insurance. | Generally, insurance cost is 5-7% of total trip cost. Multi-factor plan where multiple factors determine risk and premium. |
| Insubuy (Safe Travels Explorer, Travel Lite, Travel Basic) | Age, Trip Length, Destination, Number of Travelers | Trip Cancellation, Trip Interruption, Travel Delay, Medical Expense, Medical Evacuation, Lost/Delayed Baggage, (Specific coverage amounts vary by plan) | Compare plans based on trip details. Use online quote tool. | Recommends specific plans for budget travelers. Offers plans for travelers over 80. |
| NerdWallet (General) | Age, Destination, Trip Length, Total Trip Cost, Type and extent of Coverage | Trip Interruption, Travel Delay, Emergency Medical, Trip Cancellation, Lost Luggage, Rental Car, Cancel For Any Reason, Health, Accidental Death, Emergency Evacuation. | Compare quotes, utilize credit card travel insurance, check existing coverage. Choose coverage based on needs. | Average cost is roughly 7% of trip cost (ranges from 4%-16%). Provides average cost data based on various trip costs. |
| TravelInsurance.com (Travelex, HTH, Nationwide, Allianz, Seven Corners, Travel Guard) | Age, Trip Cost, Coverage Level | Trip Cancellation/Interruption, Emergency Medical/Transportation, Baggage Loss/Damage | Compare premiums, consider annual plans, avoid CFAR unless necessary, check existing coverage. | Cost is typically 4%-10% of total trip cost. Provides sample quotes for various companies. |
| VisitorsCoverage | Age, Medical Maximum Coverage, Deductible, Coverage Type (Fixed vs. Comprehensive), Pre-existing Conditions Coverage, Trip Duration | Hospitalization, Outpatient Treatment, Acute Onset of Pre-existing Conditions (some plans), Accidental Death & Dismemberment, Trip Interruption, Baggage Loss. | Consider fixed benefit plans for basic needs, adjust deductible and maximum coverage. Cancel before effective date for full refund. | Cost ranges from $16-$150/month. Highlights the high cost of US healthcare. Offers fixed and comprehensive plans. |
| Bajaj Allianz | Destination, Number and age of travelers, Type of insurance plan, Add-on covers, Medical conditions of travelers | Medical expenses, evacuation, Trip Cancellation/Interruption, lost baggage. (Specific details not provided) | Choose appropriate add-ons based on needs. Consider single trip vs. multi-trip. | Premium varies based on destination risk and traveler age. Offers Schengen add-on for senior citizens. |
| Compare the Market | Age, Medical history, Cover level, Trip Length, Destination | Lost baggage, Cancellation, Medical expenses, Emergency repatriation, Travel disruption | Compare quotes, choose correct policy type (single, multi-trip, etc.), get the right cover, only pay for what is needed. | Offers specialist policies (cruise, backpacker, winter sports, etc.). Provides average cost data for different policy types. |
| Squaremouth (General) | Trip Length, Trip Cost, Age, Local Healthcare Costs, Coverage Breadth, Medical Conditions, Add-ons | Travel Medical, Emergency Evacuation/Repatriation, Trip Cancellation/Interruption/Delay, Cancel for Any Reason, Baggage/Personal Belongings, 24-Hour Assistance, Car Rental Collision. | Research existing coverage, compare quotes, understand coverage types, read policy details, consider coronavirus coverage. | Comprehensive plans average $403, medical-only $96. Comprehensive plans typically 5%-10% of trip cost. |
| Allianz Global Assistance | Trip cost, Age, State of residence | Trip Cancellation/Interruption, Emergency Medical, Emergency Medical Transportation, Baggage Loss/Damage/Delay, 24-Hour Assistance. | Choose the right plan for your needs (e.g. OneTrip Cancellation Plus, multi-trip plans, OneTrip Emergency Medical), consider existing coverage. | Destination and trip length generally do not affect cost. Pre-existing condition coverage available under certain conditions. |
| Travelex | State of residence, Age, Trip length, Plan chosen (Ultimate, Advantage, Essential, Travel Med Go, Flight Insure, Flight Insure Plus), Upgrades chosen, Trip cost, Number of travelers | Trip cancellation/interruption/delay, Emergency medical/dental, Baggage/personal effects, Lost luggage. (Specific details vary by plan) | Compare plans, Consider basic vs. comprehensive, buy as soon as trip is booked. | Provides coverage for travelers up to 99 years old. Offers various plan options for different needs. |
| Multitrip.com | Policy Type (Single, Multi-trip, Family, Senior), Cover Level, Trip Length, Age, Optional Extras (Winter Sports, Travel Disruption, etc.) | Cancellation/Curtailment, Medical Expenses, Emergency Assistance, Baggage & Personal Belongings, Personal Liability, Missed Departure. | Choose the right policy type, consider multi-trip for frequent travel. | Offers specific plans for various traveler types. Highlights COVID-19 coverage. |
| International Citizens Insurance (Safe Travels Voyager, Atlas Travel) | Trip Cost, Coverage Level, Deductible, Maximum Coverage Amount | Trip Cancellation/Interruption/Delay, Emergency Medical, Lost Luggage (Safe Travels Voyager). Emergency Medical, Evacuation, Repatriation (Atlas Travel). | Adjust deductible and maximum coverage. Consider basic vs. comprehensive plans. Cancel before effective date for refund. Buy early. | Recommends comprehensive plans. Offers plans with CFAR. Atlas Travel meets Schengen visa requirements. |
| Generali Global Assistance | Trip Cost, Number of Travelers, Trip Duration, Time to Departure, Plan (Standard, Preferred, Premium), Add-ons (Rental Car Damage, CFAR). | Medical/Dental, Trip Interruption, Trip Cancellation, Trip Delay, Baggage Loss/Delay, Sport Equipment (Preferred and Premium plans). | Compare plans and consider coverage needs. | Cost is 4-12% of trip cost. Pre-existing medical condition coverage available with Premium plan under certain conditions. CFAR only available with Premium plan. |
| InsureMyTrip | Age of travelers, Number of travelers, Length of travel, Trip Cost, Type of coverage | Trip Cancellation/Interruption, CFAR (Optional), Medical/Dental, Pre-Existing Conditions (Optional), Accidental Death & Dismemberment, 24/7 Assistance. Also: Travel Medical (standalone), Emergency Medical Evacuation, Travel AD&D | Compare plans, understand coverage needs. | Offers comprehensive, travel medical, medical evacuation, and AD&D plans. Highlights best plans based on reviews. |
| Visitors Insurance (IMG) | Age, Trip duration, Destination, Pre-existing conditions, Travel insurance package plan, Policy maximum, Coverage type, Add-ons (Hazardous Sports, AD&D, Personal Liability) | Doctor visits, Pharmacy, Pre-existing conditions (some plans), Surgery, Medical evacuation, Repatriation of remains, Emergency dental. | Choose appropriate coverage and limits. Consider limited vs. comprehensive plans. | Cost varies based on multiple factors. Recommends comprehensive plans for most. |
| Snowbird Advisor Insurance | Age, medical conditions, trip duration, trip destination, COVID risk, vaccination status, coverage features (e.g., pre-existing conditions, stability clause), foreign currency fluctuations, historical and projected claims, medical inflation. | Medical, pre-existing conditions (with options), trip cancellation/interruption, etc. (Specifics not detailed) | Consider deductibles, ask about discounts (membership, loyalty, claims-free, early bird, spousal), opt for multi-trip annual plans if applicable. | No single provider has lowest premiums for everyone. Emphasizes comparing plans beyond price. |
| CNBC Select (Faye, AIG Travel Guard, Berkshire Hathaway Travel Protection, World Nomads, Travel Insured International, Nationwide) | Age, Trip cost, Length of trip, Coverage level, Destination, Add-ons (CFAR, Rental car, etc.) | Trip cancellation/interruption/delay, Medical coverage/evacuation, Baggage delay/loss, Pre-existing conditions (some plans), Rental car damage (some plans, or add-on), CFAR (some plans, or add-on), Adventure Activities (some plans, or add-on). | Check existing coverage, consider annual plans, skip CFAR unless necessary, avoid peak travel times, get a family policy, compare plans. | Provides specific plan recommendations based on traveler type (e.g., families, adventure travelers). |
| Confused.com | Age, Destination, Number of people, Medical conditions, Add-ons (Gadgets, winter sports, etc.), Policy type (Single-trip, Annual, Backpacker). | Medical treatment, Repatriation, Cancellation, Baggage, Liability, Travel disruption, Replacing lost/stolen passports. | Choose the right policy type, avoid unnecessary add-ons, compare quotes, consider family/couple/group insurance. | Provides average cost data for different policy types. Offers specialist policies (e.g., cruise, winter sports). |
| Allianz Travel Insurance | Trip cost, Number of travelers, Trip length, Destination, Coverage level, Optional add-ons (CFAR, rental car damage, pre-existing medical condition waiver) | Trip cancellation/interruption, Medical emergency, Lost/damaged baggage, Emergency evacuation, 24/7 assistance, Rental car damage (optional), CFAR (optional), Pre-existing medical conditions (optional waiver) | Compare plans, consider annual plans for frequent travelers, avoid CFAR unless necessary | Offers single-trip, annual, and rental car plans. CFAR available as an add-on. |
| AXA Travel Insurance | Trip cost, Plan type (Silver, Gold, Platinum), Destination, Trip length, Age, Number of travelers, Add-ons (CFAR, rental car coverage). | Trip cancellation, Baggage, Emergency medical, Missed connections, (Specific details vary by plan) | Consider Silver plan for basic domestic needs. Compare quotes from different providers. Consider needs and risks. Buy early to get pre-existing conditions waiver. | Plans start at $16. Silver plan recommended for budget domestic travelers. Gold and Platinum for international and cruises. |
| U.S. News | Age, destination, trip length, total trip cost, travel insurance company | Basic travel insurance (details vary by provider) | Get quotes from multiple companies, consider factors that affect cost. | Average cost is $53 or 5.3% of trip cost. Costs vary significantly by age and provider. |
