Summer Travel Insurance Costs Revealed: Factors that Affect Pricing

Travel insurance costs fluctuate based on several factors, including the total trip cost, traveler’s age, and trip duration. Typically, a comprehensive policy can range from 5-10% of the total trip cost, while policies without cancellation coverage cost less.

According to Squaremouth, a leading travel insurance comparison site based in St. Petersburg, Fla., the average cost of a comprehensive summer travel insurance policy is $595. Policies excluding trip cancellation protection have an average cost of $93.

When determining the cost, travelers can choose to insure specific trip components, such as airfare, accommodations, tours, or excursions—only non-refundable expenses should be insured. Additionally, older travelers generally pay more for insurance policies due to varying target demographics among providers.

Travel insurance coverage is designed to encompass the entirety of the trip, including from departure to return. Longer trip durations are correlated with higher premium costs. Besides standard benefits, optional policy upgrades like Cancel-For-Any-Reason and Rental Car coverage can increase the policy’s premium by approximately 40%.

In the realm of travel insurance, higher prices do not necessarily equate to better service or benefits. It is advisable for travelers to assess their coverage needs first, comparing different plans to choose the most cost-effective one that meets their specific requirements.