The Average Cost of Travel Insurance

Trying to figure out how much travel insurance costs can feel overwhelming when you're already budgeting for flights, hotels, and vacation activities. The good news? Travel insurance is typically much more affordable than most people expect, and understanding the real costs can help you make a smart decision about protecting your trip.

The average cost of travel insurance in 2025 is around $311 per policy, or roughly $21 per day of travel. However, costs vary significantly based on your age, destination, trip length, and the coverage you choose.

Ready to plan your next adventure? Make sure you're fully prepared with KOHO's travel solutions. Protect your trip with comprehensive travel insurance coverage.

What does travel insurance actually cost?

The most practical way to think about travel insurance costs is as a percentage of your trip expenses.

Here's what you can typically expect:

For a $3,000 vacation: Travel insurance will likely cost between $120-$300 for comprehensive coverage.

For a $6,000 trip: You're looking at roughly $240-$600 in insurance costs.

For a $1,500 weekend getaway: Insurance might run $60-$150.

These ranges give you a realistic starting point for budgeting, though your actual cost could be higher or lower depending on several key factors.

Age makes a big difference

Your age is one of the biggest factors affecting travel insurance costs. Insurance companies view older travellers as higher risk due to increased likelihood of medical issues

Here's how costs typically break down by age group:

Ages 18-30: Average cost around $179-$212 per policy. Younger travellers get the best rates since they're considered lower risk for medical emergencies.

Ages 31-50: Average cost increases to roughly $260-$415 per policy as health risks begin to rise.

Ages 60+: Costs jump significantly, with travellers over 60 often paying $450-$690+ per policy due to higher medical risks.

Seniors (70+): Can expect to pay the highest premiums, sometimes $600-$1,000+ for comprehensive coverage, especially for longer trips.

Trip length and destination impact

Trip Duration: Longer trips cost more to insure because there's simply more time for something to go wrong. A 7-day trip might cost $150 to insure, while a 21-day journey could run $400+ for the same traveler.

Where You're Going: Your destination significantly affects costs.

Here are average costs by popular destinations:

• Mexico: Around $173 (often the most affordable due to shorter trips and lower medical costs)

• United States/Canada: Approximately $247-$267

• United Kingdom: About $287 for longer stays

• Europe (France, Spain, Italy): $327-$367 typically, reflecting longer trip durations

• Japan: Around $305 for extended visits

Destinations with higher healthcare costs or greater political/natural disaster risks generally have higher insurance premiums.

Types of coverage affect your bill

Basic/Medical-Only Plans: These focus primarily on emergency medical coverage and typically cost around $91 per policy, or about $4.53 per day. They're the most affordable option but offer limited protection.

Comprehensive Plans: These include trip cancellation, medical coverage, baggage protection, and more. They average $414 per policy, or roughly $29.57 per day, but provide much broader protection.

Premium Plans with Add-Ons: Adding features like "Cancel for Any Reason" coverage can increase costs by 40-50%. The average policy with CFAR costs around $696.

What drives up (or down) your costs

Factors That Increase Costs:

• Being over 50 years old

• Pre-existing medical conditions

• Traveling to high-risk destinations

• Longer trip durations

• Higher trip costs you want to protect

• Adding optional coverages like rental car protection

Ways to Lower Costs:

• Choose higher deductibles

• Select basic coverage instead of comprehensive

• Shop around with multiple insurers

• Buy coverage early (within 14-21 days of booking)

• Consider annual plans if you travel frequently

Annual vs. single trip: which costs less?

If you take three or more trips per year, an annual travel insurance plan often provides better value than buying separate policies for each trip.

Single Trip Policies: Best for occasional travellers, typically costing 4-8% of each trip's cost.

Annual Policies: Cover multiple trips throughout the year, usually costing $300-$800 annually depending on your age and coverage level. These can offer significant savings for frequent travellers.

Getting the best value for your money

Don't Just Compare Price: A $50 policy that doesn't cover your needs isn't cheaper than a $150 policy that actually protects you. Focus on coverage that matches your specific risks and trip details.

Buy Early: Purchasing within the "time-sensitive period" (usually 14-21 days after your first trip payment) often unlocks better coverage options and pre-existing condition waivers without additional cost.

Read the Details: Understanding exclusions and coverage limits is crucial. That "cheap" policy might have a $10,000 medical coverage limit when you need $100,000+ for a serious emergency abroad.

Consider Your Existing Coverage: Check what your health insurance, credit cards, and employer benefits already cover before paying for duplicate protection.

Is it worth the investment?

When you consider that travel insurance claims pay out an average of 6 times the policy premium, the investment often makes financial sense.

A $200 insurance policy could save you from a $50,000 medical bill or protect your entire $4,000 vacation investment.

The key is viewing travel insurance not as an expense, but as protection for your travel investment and financial security.

Plan smart, travel protected

Travel insurance costs are generally reasonable when viewed as protection for your vacation investment and financial security.

While no one wants to pay for coverage they might never use, the alternative – facing tens of thousands in medical bills or losing your entire trip cost – makes insurance a smart financial decision for most travellers.

Remember, the "cheapest" option isn't always the best value if it doesn't adequately protect you. Focus on finding coverage that matches your specific needs and risk tolerance at a price that fits your travel budget.