Travel insurance is not universal, so the price and terms of a plan may vary. However, understanding the pricing guidelines can be helpful in planning your travel insurance purchase.
In general, you should expect a plan to cost between 4% and 10% of the total cost of your prepaid, non-refundable trip. For example, if you purchased a trip with a total cost of $5,000, the travel insurance policies available to you will likely cost between $250 and $500, depending on the variables.
Travel Insurance Rate Factors
Providers will use some personal information, other than the cost of your trip, to calculate the cost of a plan:
Age of travellers
Number of travellers
Length of trip
Type of coverage
The age of travellers is considered one of the most important of the four factors. As a general rule, a traveller over 65 can expect higher rates. If you are travelling with minors, you may be able to add them to the plan at no extra cost or at a lower rate, depending on the travel insurance company.
The number of travellers and the length of the trip can often increase plan rates. This is because with more variables, there are more risks attached to the plan. For example, if you travel abroad for 21 days, as opposed to only seven, you are exposed to more medical and trip interruption risks. These are two reasons to use your plan. The same can be said if you are travelling with four to five people, instead of just two.
The type of cover you choose will also affect the rate. A basic, no-frills comprehensive plan will naturally cost less than a plan that includes a myriad of optional benefits such as cancellation for any reason or rental car collision coverage. Similarly, higher coverage limits for medical expenses or medical evacuation will increase the rate compared to a plan with lower coverage amounts.
The right travel insurance plan
The plan rate should not deter you from purchasing the coverage you feel you need to fully protect your trip. InsureMyTrip offers hundreds of plans for all types of travelers. The type of coverage a traveler who intends to hike in the Himalayas, for example, needs is very different from the type of coverage a family needs for a short cruise to the Bahamas.
It is not only important to compare travel insurance rates, but also coverage. This will help you find the right travel insurance plan for your trip. It can be helpful to compare travel insurance plans that offer similar levels of coverage and are tailored to your needs. Don't be swayed by a cheaper plan with benefits that don't quite fit; or, similarly, expensive plans that over-insure your trip.
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