How much is travel insurance? 7 factors that can impact your policy cost

05.28.24 by Travelex Insurance
Image credit: Getty Images
Discover which factors may increase or decrease your policy premium — meaning how much you pay for your travel insurance — before you protect your trip.

When we set off on vacation, we hope it brings us nothing but joy and fun, memorable experiences. But if something goes wrong while you're traveling, things can get stressful – and expensive. Thankfully, that's where travel insurance can help.

"When you buy travel insurance, you're not only eligible for reimbursement of unexpected costs, but you’ll also be traveling with an expert team who’s ready to help you 24/7 if an unexpected incident arises. Your policy protection could prove well worth the premium amount if the unthinkable happens during your trip and you rack up unexpected costs."

Frank Harrison, Regional Security Director Americas at Travelex Insurance’s 24/7 assistance provider, World Travel Protection.

But have you ever asked yourself, "How much is travel insurance?" when booking a trip and researching how to protect it? While the answer to this question varies because so many factors can influence how much you’ll pay, here are some of the most common pricing factors of a travel insurance policy and how they can affect your premium.

These 7 factors may affect how much your travel insurance policy costs:

1. Your state of residence.

2. Your age.

3. The length of your trip.

4. The travel insurance plan you choose.

5. Additional upgrades you choose.

6. Your trip cost.

7. Including additional travelers on your policy.

Can my state of residence affect the cost of my travel insurance policy?

Certain states have their own travel insurance pricing compared to the rest of the country. So, depending on where you live, you may pay more for your travel insurance policy compared to residents of other states. For example, if you live in New York, your pricing may vary for your travel insurance policy compared to someone buying the same plan in Nebraska.

Can my age affect the cost of my travel insurance policy?

Generally, your travel insurance premium will increase as you get older, especially once you’re over 65. This is because travelers over 65 have a higher risk profile than younger travelers, particularly when it comes to health and safety.

For example, older travelers are more likely to have more health conditions, which increases the risk of a medical expense claim. Similarly, older travelers may be more likely to be targeted by thieves in some countries, which could result in costly claims.

With that said, traveling in the golden years can be smooth, fulfilling, and memorable — especially with senior travel insurance. Our Travelex plans can provide coverage for travelers up to 99 years old. Get a quote online now to see your premium for your next trip.

Can my trip length affect the cost of my travel insurance policy?

Travel insurance premiums are usually lower for shorter trips and higher for longer trips.

Here’s why: Policy cost is based on the likelihood of something going wrong. And the longer you’re on vacation, the greater the chance of an unexpected issue popping up.

At Travelex, our plans have maximum trip lengths. Here are the trip duration limits for each of our comprehensive plans:

  • Travel Select: up to 364 days.
  • Travel Basic: up to 30 days.
  • Travel America: up to 14 days.

Curious how much your policy would be based on the length of your next trip? Get a quote online now.

Can the Travelex plan I choose affect the cost of my travel insurance policy?

We know each trip is unique, so we offer different plans to help you pick one that suits your vacation. When you get a quote for your Travelex policy, you’ll see the relevant plan options available for your destination with varying levels of coverage, including:

The more basic plan options like Travel Med and Flight Insure generally cost less than comprehensive plans like our Travel Select plan. However, they also offer a lower level of coverage. It’s smart to compare our travel insurance plans to determine which one is best for your trip itinerary and budget.

Also, it’s always important to read all the policy details to ensure the plan you choose is right for your trip, and contact us if you have any questions before you get a quote. You can reach our customer service team at 1-800-228-9792.

Can the upgrades I include affect the cost of my travel insurance policy?

At Travelex, we want you to have the power to tailor your travel insurance policy to your trip. So, some of our plans are customizable with the option to add extra coverage with upgrades — which can increase your benefits and premium.

Planning on trying more thrilling adventure sports like skydiving over Mt. Everest or zip lining through the jungle in Costa Rica? Our base plans offer coverage for certain adventure sports, but if you want protection for others, adding our adventure sports upgrade to our Travel Select plan will increase your premium.

Similarly, if you want coverage to rent a car while you explore Norway, extra medical expense or flight AD&D coverage for your trip to Thailand, or the ability to cancel your trip to Hawaii for any reason, our upgrades can come in handy. Just remember that you’ll pay more for your travel insurance policy if you include these upgrades because you’re getting more coverage.

Here are our plans with optional upgrades:

Travel Select

Travel Basic and Travel Med

Important: Keep in mind that your eligibility to add our upgrades varies by state. For example, cancel for any reason isn't available for New York residents. Also, car rental collision can't cover you in Ireland, Mexico, Jamaica, and Costa Rica.

Can my trip cost affect the cost of my travel insurance policy?

The more money you invest into your trip, the more you’ll likely pay for travel insurance. For example, a policy for a $2,000 trip to Mexico will likely cost less than one that costs $10,000. This is because if something goes wrong, you’re at risk of losing more money than someone who paid less for their trip.

We want to help protect your prepaid, nonrefundable vacation expenses from the unexpected. So, to get the coverage you need for any potential losses, it’s smart to consider getting coverage for your full trip cost, even if it increases your premium. If you don’t, you could be stuck paying for unforeseen expenses beyond what you dedicated to your getaway.

Want to learn more about your travel insurance trip cost? Check out our article on what to include and skip when you calculate trip cost.

Can including other travelers on my policy affect the cost of my travel insurance?

When you get a Travelex quote for multiple travelers, you’ll enter the other travelers’ ages and trip costs, and their individual trip details may increase the premium. For example, an older traveler accompanying you on your trip may raise the premium compared to a quote with a younger travel companion. Also, if your travel companion’s trip cost is $5,000, your policy may cost more than a quote for an additional traveler whose trip cost is $1,000.

Want to know how much it costs to protect your trip with loved ones? Get a quote now to find out.

Protection when you need it the most

There’s no one answer to the question, “How much is travel insurance?" because your policy premium will always vary depending on your age, destination, trip length, selected plan, and more.

One thing is clear, though: Protecting your vacation with our Travelex coverage can give you access to 24/7 travel assistance and financial protection should the unthinkable happen on your trip. This way, you can focus on making the most of your time away, knowing we may be able to help if something goes wrong.

Ready to protect your upcoming trip?

Travel with our team by your side and get a quote now.


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