Best travel insurance rates for your trip, week of January 24
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The average cost of travel insurance has increased over the past week, according to travel agency SquareMouth. The average premium is currently $301.00, up from $288.99 last week. However, keep in mind that where you're traveling and how many people are taking the trip will affect your exact traveler's insurance premium.
Travel insurance weekly rates at a glance:
Average premium: $301.00
Average trip cost: $5,900.67
Average trip length: 16 days
Get your free travel insurance quote with SquareMouth »
What is travel insurance?
Travel insurance plans can cover both domestic and international travel. It could protect against something as familiar as delayed baggage (experts estimate 85% of lost luggage is returned to its owner within 48 hours) or as complicated as trip cancellation.
The benefits and limitations of travel insurance vary based on the company and plan. Above all else, this insurance coverage offers peace of mind.
Some credit cards offer a limited amount of travel insurance annually. If you need clarification on what your credit card offers, contact your provider to verify. These plans are great for cancellations and interruptions, but may not cover more costly losses associated with unexpected medical expenses or emergency evacuations.
Individual travel insurance plans include this and much more. Travel insurance protects travelers from the unexpected when away from home.
Average cost of travel insurance by most popular destinations
Some countries are naturally more expensive travel destinations due to higher flight and lodging costs, which could increase travel insurance costs. But when controlled for the price, the destination doesn't change how much you'll spend to insure your trip.
Here's how the prices stack up:
| Country | Average trip cost | Average cost of travel insurance |
| United States | $4,317.53 | $173-$346 |
| Mexico | $2,516.28 | $101-$202 |
| Israel | $3,333.42 | $133-$266 |
| Italy | $6,651.79 | $266-$532 |
| Costa Rica | $3,501.20 | $140-$280 |
| France | $4,855.87 | $194-$388 |
| Bahamas | $3,084.55 | $123-$146 |
| Japan | $4,792.77 | $192-$384 |
| Thailand | $2,608.46 | $104-$208 |
| Spain | $4,271.85 | $171-$342 |
Source: SquareMouth
When people are buying travel insurance
According to an AAA travel survey, 88% of travelers say that reimbursement after a trip cancellation is the most valuable benefit of trip insurance.
According to data gathered by SquareMouth in the last six months, travelers tend to purchase trip cancellation travel insurance 53 days before their trip. Meanwhile, travelers without trip cancellation insurance will buy a policy approximately 16 days before their trip.
| Policy type | Average days between purchase to trip | Average trip length (days) | Average trip cost | Average cost of travel insurance |
| Cancellation | 53 | 13 | $5,900.67 | $362.99 |
| Non-cancellation | 16 | 21 | N/A | $94.70 |
Source: SquareMouth
When is the best time to travel?
Travel costs and insurance rates vary based on travel demand, fuel costs, and other economic factors. Costs may also vary based on your preferred destination. If you're looking for the cheapest time to travel, we recommend booking early with cancel for any reason coverage.
Overall, monthly travel insurance rates were steady month by month. However, international travel costs may see greater variances.
| Month | Average trip cost | Average cost of travel insurance |
January 2023 | $5,790.92 | $289.14 |
December 2022 | $6,170.15 | $290.80 |
November 2022 | $6,018.49 | $288.57 |
October 2022 | $5,971.56 | $292.31 |
September 2022 | $5,740.06 | $288.22 |
August 2022 | $5,827.77 | $292.16 |
July 2022 | $5,930.35 | $283.92 |
June 2022 | $6,015.65 | $262.65 |
May 2022 | $5,758.80 | $245.90 |
April 2022 | $5,347.28 | $233.51 |
March 2022 | $5,022.57 | $225.87 |
February 2022 | $5,020.11 | $235.94 |
Average cost of travel insurance by age
A traveler's age is a significant factor in determining the cost of travel insurance. The older a traveler is, the higher travel insurance premiums are. For instance, a senior traveler may need more insurance for health-related emergencies than a millennial.
When calculating your travel insurance premium, travel insurance providers consider the likelihood of a medical emergency.
| Generation | Average cost of trip | Average cost of travel insurance |
| Gen Alpha (born 2013 or later) | $1,340.97 | $54-$108 |
| Gen Z (born 1997 through 2012) | $1,761.50 | $70-$140 |
| Millennial (born 1981 through 1996) | $1,727.54 | $69-$138 |
| Gen X (born 1965 through 1980) | $2,162.08 | $86-$172 |
| Baby Boomers (born 1946 through 1964) | $2,857.33 | $114-$228 |
| Silent generation (born 1945 or before) | $2,897.08 | $115-$230 |
Source: SquareMouth
Get your free travel insurance quote with SquareMouth »
What does travel insurance cover?
Travel insurance can help reimburse you for non-refundable parts of your trip or help you if you're injured or face an emergency.
Travel insurance policies cover six main things:
- Trip cancellation or interruption
- Trip delays
- Medical costs while traveling
- Baggage damage, delays, or loss
- Emergency transportation
- Rental car damage
If you have a credit card, you may already have access to some of these coverages without purchasing a separate travel insurance policy. For example, many airline credit cards or travel credit cards offer trip cancellation, delay coverage, and baggage coverage.
For example, the Chase Sapphire Reserve and Chase Sapphire Preferred cards both come with some travel coverage, including trip cancellation, interruption, and delay coverage, baggage delays, rental cars, accidental death, and dismemberment coverage.
Before getting a travel insurance policy, making sure the terms match your needs or concerns is essential. During the COVID-19 pandemic, that's especially important - each travel insurance company has unique reimbursement and cancellation rules due to this event. So read the fine print of any travel insurance policy before purchasing.
Is travel insurance worth it?
Many customer reviews talk about peace of mind. Travelers didn't have to use travel insurance, but they're so glad they had it. Occasionally, travelers must file a claim for lost luggage, medical or hotel expenses, and more. This is the true test of value for travelers' insurance.
When travel insurance companies have online claims processing, phone or chat-based customer support, and pay claims quickly based on purchased plans, it's worth it. However, when the claims process is overly burdensome, taking weeks or even months, the value of travel insurance may not be as clear.
The adage "you get what you pay for" applies when shopping for the best travel insurance companies. The more you're willing to spend, the more comprehensive your travel insurance coverage can be. Trusted providers also offer faster claims and better customer service. Insider recommends comparing at least three quotes to find competitive rates and high customer satisfaction ratings to cover your next trip.
Get your free travel insurance quote with SquareMouth »
Travel Insurance Rates FAQs
How much does travel insurance cost?
Travel insurance rates through most providers fall between 4% and 8% of the total trip cost. Just like the cost of flights, cruises, etc., rates may vary substantially based on the season, your original location, your destination, and other factors.
Does travel insurance cover COVID and political events?
Above all else, travel insurance covers the unpredictability of life. This could include common issues like lost luggage and unexpected accidents while on the road. It can also cover larger incidents like the COVID pandemic, political unrest in areas like Peru, or large winter storms affecting multiple US states or countries.
How do I buy travel insurance?
Travel insurance quotes are available online through provider websites. We recommend going through broker sites like Squaremouth to get multiple quotes for easy comparison online.