How much does travel insurance cost?

What can you expect to pay for a travel insurance plan?

So you’re taking a nice trip, all the plans are made and you have begun to purchase plane tickets and book hotel rooms. You even heard about travel insurance from a friend, and you want the peace of mind it provided him.

The next question is how much it will cost. You want to make sure you don’t pay too much to insure your non-refundable cruise, airfare, hotel, or tour costs.

You also don’t want to pay too little; is an insurance policy the best place to pinch pennies, buying the absolute cheapest policy, only to find out it has none of the coverage you thought it would?

In general you can expect to pay between 5-10% of the total trip cost

This applies to a comprehensive, or “package” plan. Package plans are what most people think of when they hear “travel insurance”. Package plans cover non-refundable expenses such as:

• Airline tickets
• Hotel reservations
• Tours
• as well as coverage for lost baggage, medical emergencies and evacuations

Because these plans include so many coverages, they tend to be the most expensive.

Another option is to purchase a specialized plan providing specific coverage. Insurance companies offer policies covering:

• Travel medical coverage (medical insurance while abroad)
• Emergency medical evacuation (airlift to nearest hospital/back home)
• Flight accident
• Multi-trip annnual plans

In general, most travelers needs are met by a package plan. This provides peace of mind coverage for cancelled/interrupted trips, lost baggage, and medical expenses.