Travel insurance typically costs 4–10% of your total prepaid trip cost. On a $5,000 trip, you should budget $200–$500 for a comprehensive plan. A basic trip cancellation-only policy for the same trip runs $80–$150. The biggest variables are your age, the total trip cost you are insuring, and whether you add Cancel For Any Reason (CFAR) coverage.
Quick answer: The average traveler pays 4–10% of their trip cost for travel insurance. A $3,000 trip = roughly $120–$300 in premium. A $10,000 trip = $400–$1,000. Age is the second biggest factor — a 65-year-old pays roughly 2–3x what a 35-year-old pays for the same policy. Use multiple quotes before buying; prices for equivalent coverage vary 30–50% across insurers.
Average Travel Insurance Cost by Trip Price
The simplest way to estimate your premium is as a percentage of your total insured trip cost:
| Total Trip Cost | Average Premium (4–10%) | Budget Plan | Comprehensive Plan |
|---|---|---|---|
| $1,000 | $40–$100 | $30–$50 | $80–$120 |
| $2,500 | $100–$250 | $70–$120 | $150–$300 |
| $5,000 | $200–$500 | $130–$200 | $280–$550 |
| $10,000 | $400–$1,000 | $250–$400 | $550–$1,100 |
| $20,000 | $800–$2,000 | $500–$750 | $1,100–$2,200 |
Estimates for a 35-year-old traveler on a 10-day international trip. Rates vary by insurer, destination, and coverage level.
Average Cost by Age
Age is one of the strongest pricing factors in travel insurance. Older travelers present higher medical risk, and insurers price accordingly:
| Age | Avg. Premium — $5,000 Trip, 10 Days International |
|---|---|
| 25 | $150–$250 |
| 35 | $180–$320 |
| 45 | $220–$400 |
| 55 | $290–$500 |
| 65 | $450–$800 |
| 75 | $700–$1,400 |
Worked example: A couple — both aged 68 — taking a $12,000 cruise can expect to pay $1,200–$2,400 for a comprehensive policy. The same trip for two 40-year-olds would run $600–$1,100.
Types of Travel Insurance and Their Costs
Not all travel insurance is the same. Here is what each type typically costs:
Comprehensive Trip Insurance (most popular)
Covers trip cancellation, interruption, delay, medical expenses, emergency evacuation, and baggage. This is the standard “travel insurance” product most people buy.
- Cost: 4–10% of trip cost
- Best for: International travel, cruises, trips with large non-refundable deposits
Trip Cancellation Only
Covers only if you have to cancel before departure for covered reasons.
- Cost: 1–4% of trip cost
- Best for: Travelers who already have health insurance that covers international emergencies
Medical-Only / Travel Medical Insurance
Covers emergency medical expenses and evacuation only. No trip cancellation coverage.
- Cost: $30–$120 for a 2-week trip, regardless of trip cost
- Best for: Budget travelers, backpackers, travelers with good cancellation policies on bookings
Annual / Multi-Trip Plans
Covers all trips taken in a year, up to a per-trip duration limit (usually 30–70 days per trip).
- Cost: $200–$500/year for an individual; $400–$900/year for a family
- Best for: Travelers taking 3+ trips per year — typically the break-even point vs. per-trip policies
Cancel For Any Reason (CFAR) Upgrade
Added to a comprehensive policy, CFAR lets you cancel for any reason — including just changing your mind — and receive 50–75% of your trip cost back.
- Cost: Adds 40–60% to the base policy premium
- Example: A $300 comprehensive policy with CFAR added = $420–$480
- Best for: Travelers with uncertain plans, trips during hurricane season, or high-cost trips where flexibility matters
What Factors Drive the Price Up or Down
Factors that increase your premium:
- Older age — the single biggest cost driver after age 60
- High trip cost — premiums scale with the dollar amount insured
- International destination — especially countries with no US health coverage agreements
- Adventure activities — bungee jumping, skiing, scuba diving often require a rider or higher premium
- Adding CFAR — roughly doubles the cancellation benefit cost
- Longer trip duration — more days = more exposure
Factors that lower your premium:
- Insuring only non-refundable costs — do not insure refundable flights or hotels; only add what you cannot get back
- Buying early — policies purchased within 14–21 days of your first trip deposit often unlock time-sensitive benefits (pre-existing condition waivers, CFAR eligibility) at no extra cost
- Annual plans — cheaper per-trip if you travel frequently
- Younger travelers — under-40 travelers pay the lowest rates
Credit Card Travel Insurance vs. Standalone Policy
Many premium travel credit cards include built-in coverage. Before buying a standalone policy, check what your card already covers:
| Coverage Type | Chase Sapphire Preferred | Amex Platinum | Standalone Policy |
|---|---|---|---|
| Trip cancellation | Up to $10,000/trip | Up to $10,000/trip | Up to trip cost |
| Trip delay | $500 after 12 hrs | $500 after 6 hrs | Varies |
| Baggage loss | Up to $3,000 | Up to $3,000 | Up to $2,500 |
| Emergency medical | ❌ | ❌ | Up to $100K–$500K |
| Emergency evacuation | ❌ | Yes (via Amex) | Up to $500K–$1M |
| Primary rental car | ✅ | ✅ | Varies |
The key gap: Credit cards rarely cover emergency medical expenses or medical evacuation. A medical evacuation from Southeast Asia or a remote European mountain can cost $50,000–$200,000. If you are traveling internationally, a standalone policy with at least $100,000 in medical coverage and $500,000 in evacuation coverage fills this critical gap even if your card covers other benefits.
How to Get the Best Price on Travel Insurance
- Compare at least 3 quotes — use comparison sites (InsureMyTrip, Squaremouth, TravelInsurance.com) to get side-by-side rates for equivalent coverage. Prices vary 30–50% for similar policies
- Buy within 14–21 days of your first deposit — unlocks pre-existing condition waivers and CFAR eligibility at no extra cost
- Only insure non-refundable costs — don’t inflate your insured trip cost with refundable bookings
- Consider annual plans if taking multiple trips — break-even is usually 3+ trips per year
- Match coverage to your risk — healthy traveler on a budget trip does not need a $500 policy; older traveler on a $15,000 cruise should not underinsure
- Check group plans — families often get better per-person rates on family policies vs. individual policies
Is Travel Insurance Worth the Cost?
Generally worth it when:
- Trip cost is $3,000+ in non-refundable bookings
- Traveling internationally, especially to regions with expensive or inaccessible medical care
- You are 60+ (higher medical risk makes the premium more actuarially appropriate)
- Your trip involves a cruise or complex multi-destination itinerary
- You are traveling during hurricane season (June–November for the Caribbean/Atlantic)
Often not worth it when:
- Domestic trip with fully refundable flights and hotels
- Short weekend getaway with minimal prepaid costs
- Traveling to a country with which the US has health coverage (Canada — your US health plan may cover emergencies)
- You already have a premium credit card that covers your primary cancellation risks
Internal Resources
- Travel Insurance Guide — What It Covers and When to Buy
- Best Travel Insurance Companies 2026
- Best Travel Credit Cards 2026
- Airport Lounge Access — Best Cards and Options
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