Key Takeaways
- The best travel insurance companies are PrimeCover, Travel Insured International and WorldTrips, based on our analysis of 42 policies.
- Travel insurance policies can compensate you for unforeseen events that can happen before or during your trip. Examples include if you have to cancel your trip for a reason listed in the policy, experience a delay or get injured during your trip.
- Our analysis found the average cost of travel insurance is 6% of your insured trip cost.
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The Best Travel Insurance Companies
- PrimeCover – Best for Evacuation
- Travel Insured International – Best for Non-Medical Evacuation
- WorldTrips – Great for Add-On Coverage
- TravelSafe – Best for Missed Connections
- Nationwide – Best for Policy Perks
- AIG – Best for Customization
- Seven Corners – Great for Medical & Evacuation
- AXA Assistance USA – Best for Baggage
- Generali Global Assistance – Great for Pre-Existing Medical Condition Coverage
- Travelex – Best for Families
- HTH Worldwide Travel Insurance – Best for Trip Interruption
- Nationwide – Great for Cruise Itinerary Change/Inconvenience
The Best Travel Insurance Companies in More Detail
Best Travel Insurance Companies: Summary
Source: Forbes Advisor Research. Average costs are based on various trip costs, ages and number of travelers.
How Much Does Travel Insurance Cost?
The average cost of travel insurance is 6% of your trip cost, based on our analysis. The cost of travel insurance is usually mainly based on the age of travelers and the trip cost being insured.
Here’s a look at the average travel insurance cost for a 30-year-old woman traveling from California to Mexico for a 14-day trip.
| Trip cost | Average travel insurance cost | Travel insurance cost as % of insured trip cost |
|---|---|---|
$1,000 | $61 | 6% |
$2,500 | $120 | 5% |
$5,000 | $228 | 5% |
$10,000 | $512 | 5% |
$20,000 | $1,204 | 6% |
$30,000 | $1,848 | 6% |
$50,000 | $3,091 | 6% |
What Affects Travel Insurance Costs?
Unlike many other types of insurance, there are usually only a few factors that go into travel insurance pricing.
Trip Cost Being Insured
The more trip costs you insure, the higher your travel insurance cost. Your trip cost includes any prepaid, non-refundable expenses, such as airfare, hotel accommodations, tours, event tickets, excursions and theme park passes.
Your Age
The traveler’s age is also taken into account in travel insurance pricing. That’s because older travelers tend to have a higher likelihood of filing medical claims.
Coverage
The more protection you buy, the more you’ll pay. For instance, if you opt for a “cancel for any reason” upgrade and generous travel medical expense coverage, you’ll pay more.
What Does Travel Insurance Cover?
Comprehensive travel insurance policies package together a number of valuable benefits. You can also buy policies that cover only trip cancellation or only medical expenses. With the wide variety of travel insurance plans available, you can find coverage levels that will fit your budget and trip needs. The core types of travel insurance include the following:
Trip Cancellation Insurance
Trip cancellation insurance reimburses you 100% for money you lose in prepaid, non-refundable deposits if you have to cancel for a reason listed in the policy. Common reasons include unexpected illness, injury and family member sickness. This is different from the “cancel for any reason” travel insurance upgrade.
Travel Medical Insurance
Travel medical insurance pays for ambulance service, X-rays, lab work, medicine, doctor and hospital bills, and other medical expenses during your trip, up to policy limits. Accidents and health issues can arise unexpectedly, so this is important coverage for travelers going abroad, where your U.S. health plan may have limited global coverage or no coverage.
Case Study: Food Poisoning in London
Emergency Medical Evacuation Insurance
Emergency medical evacuation insurance pays up to the policy limits to get you to the nearest adequate medical facility. This can especially come in handy if you are in a remote location and need emergency transportation for medical care.
Travel Delay Insurance
Travel delay insurance compensates you for expenses for things like meals and lodging if you’re stuck somewhere due to a delay that’s covered by your travel insurance plan. Specified waiting period before benefits apply—for example, six or 12 hours—and also a per-day maximum limit and a total maximum per person.
Trip Interruption Insurance
If you have to cut your trip short because of a reason listed in the policy, trip interruption insurance reimburses you for the non-refundable parts of your trip that you miss. It can also pay for a last-minute one-way ticket home if you have an emergency.
Baggage Insurance
Baggage insurance reimburses you for lost, stolen or damaged belongings. But note that reimbursement is for the depreciated value of your items, not the cost to buy new ones.
And baggage delay insurance lets you recoup expenses for necessities, such as clothes and toiletries, while you wait for your luggage. Policies usually require a certain time delay before baggage delay coverage kicks in, such as six hours.
“Cancel For Any Reason” Travel Insurance
“Cancel for any reason” (CFAR) travel insurance is optional coverage that allows you to cancel your trip for any reason that’s not listed in your base policy and be partially reimbursed for non-refundable trip costs.
You generally must cancel at least 48 hours before your departure time. Reimbursement under a CFAR claim is usually 75% or 50% of your trip costs. CFAR adds an average of about 50% to an insurance plan’s cost, but might be worth it if you want the most flexibility for trip cancellation.
“Interruption For Any Reason” Travel Insurance
“Interruption for any reason” (IFAR) travel insurance is an optional upgrade that permits you to cut short a trip for any reason and get up to 75% reimbursement for the non-refundable money you lose. You usually must be at least 48 hours into your trip to file a claim. It typically adds 3% to 10% to your travel insurance cost.
Accidental Death and Dismemberment Insurance
Accidental death and dismemberment (AD&D) insurance is included in some policies. If an accident that’s covered by the policy kills or dismembers the policyholder during the trip, travel accident insurance pays out the specified amount.
It usually pays out a percentage of the maximum benefit, depending on the loss.
How to Buy Travel Insurance
When to Skip Travel Insurance
You likely don’t need travel insurance if:
- Your airfare and hotel costs are refundable.
- You can afford to lose the money you spent on non-refundable trip costs.
- You’re not traveling internationally.
- You’re not traveling to a remote area with limited healthcare facilities.
- Your destination is not prone to hurricanes and severe weather.
- You have a direct flight.
- You’re not worried about losing your trip investment if you need to cancel or cut a trip short.
- Your credit card travel insurance provides adequate coverage for your trip.
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We Answer Your Questions
Methodology
We researched and analyzed 42 policies to find the best travel insurance. When companies had more than one highly rated travel insurance policy we used the highest-scoring plan. Ratings are based on the following metrics.
Cost (25% of score): We analyzed the average cost for each travel insurance policy for trips to popular destinations:
- Couple, age 30 for a Mexico trip costing $3,000.
- Couple, age 40, for an Italy trip costing $6,000.
- Family of four for an Italy trip costing $15,000.
- Family of four for a France trip costing $15,000.
- Family of four for a U.K. trip costing $15,000.
- Couple, age 65, for an Italy trip costing $6,000.
- Couple, age 70, for a Mexico trip costing $3,000.
Missed connection coverage (10% of score): Travel insurance policies were awarded more points if they include missed connection benefits of $1,000 per person or more.
Medical expenses (10% of score): Travel insurance policies with travel medical expense benefits of $250,000 and up per person were given the highest points.
Medical evacuation (10% of score): Travel insurance policies with medical evacuation expense benefits of $500,000 and up per person were given the highest points.
“Cancel for any reason” upgrade (10%): Travel insurance policies received points if “cancel for any reason” upgrades are offered. More points were awarded for “cancel for any reason” upgrades with reimbursement levels of 75%.
Baggage delay required waiting time (5%): Policies with baggage delay benefits kicking in at 12 hours or less were given points.
Cancel for work reasons (5%): Travel insurance plans that allow cancellations for work reasons were awarded points.
Hurricane and weather (5%): Policies received points if the required waiting period for hurricane and weather coverage was 12 hours or less.
“Interruption for any reason” upgrade (5%): Policies were awarded points if they offered an “interruption for any reason” upgrade.
Pre-existing medical condition exclusion waiver (5%): Points were given to policies that cover pre-existing medical conditions (if purchased within a required timeframe after the first trip deposit).
Travel delay required waiting time (5%): Policies with travel delay benefits kicking in after six hours or less were given points.
Trip interruption travel insurance (5%): Points were given if trip interruption reimbursement is 150% or higher.
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