Travel Insurance Costs: What You Need to Know Before Your Next Trip
TORONTO, June 12, 2024 (GLOBE NEWSWIRE) — Travel insurance is not a one-size-fits-all product, and the price and conditions of a plan can vary significantly. So, the experts at Canada’s rapidly growing travel insurance comparison site, InsureMyTrip, are breaking down the cost guidelines to help travellers make informed decisions when purchasing travel insurance.
General Pricing Guidelines
A common question for travellers is “Why is travel insurance so expensive?” However, the truth is, it’s not!
Typically, a travel insurance plan will cost between 4% and 10% of your total pre-paid, non-refundable trip cost. For instance, if your trip costs $2,000, you could potentially pay between $80 and $200 for a travel insurance policy, depending on various factors.
Key Factors Influencing Travel Insurance Rates
- Age of the Travellers – As the age of the traveller increases, typically so does the cost of the policy. However, some plans may offer family pricing if qualifying children are on the policy.
- Number of Travellers – The more people covered by the plan, the higher the cost. Travelling with four or five people will generally be more expensive to insure than travelling with just two.
- Length of Travel – Longer trips are more expensive to insure due to increased risk. For example, a 21-day overseas trip may have higher premiums compared to a 7-day trip.
- Type of Coverage – The type of coverage selected will also affect the cost. Basic, no-frills All-Inclusive plans are cheaper than those offering extensive benefits like Cancel for Any Reason. Similarly, higher limits for medical expenses or medical evacuation will increase the rate.
*Note: Some providers might also consider additional factors, resulting in varying premiums for different trips
Choosing the Right Travel Insurance Plan
It’s essential not to let the cost deter you from purchasing adequate coverage. InsureMyTrip offers dozens of plans tailored to various traveller needs. Whether taking in the sights in the United Kingdom or cruising the Bahamas, the right protection is crucial.
When selecting a plan:
- Compare both the rates and the coverage offered.
- Ensure the benefits align with your specific travel needs.
- Avoid choosing a lower-priced plan that doesn’t offer adequate coverage or an overly expensive plan that exceeds your requirements.
Calculating Trip Cost for Travel Insurance
Accurately calculating your trip cost is vital to determining the correct travel insurance plan. Only prepaid, non-refundable expenses should be included in your insured trip cost. These typically include airline tickets, cruise costs, hotels, tours, and prepaid excursions. Costs like tuition fees for classes or business trip expenses may be insurable with specific companies.
Tips for Calculating Trip Cost
- Include costs you would lose if you had to cancel the trip before or on the day of departure.
- Frequent flyer miles cannot be insured; however, associated government taxes and fees associated with reinstating the points/miles may be insurable through some providers.
- Ensure you cover 100% of your prepaid, non-refundable expenses to be eligible for certain benefits.
- You can add trip costs to your insurance plan after purchase if additional expenses arise as your trip approaches.
By purchasing a plan as soon as you make your first trip payment you can secure the best protection for your journey.
Media Contact:
Meghan Kayata
Press@insuremytrip.com
About InsureMyTrip
You like options. We do too. InsureMyTrip finds you the right travel insurance plan, every time. We are committed to empowering travellers to make the best possible insurance decisions by leveraging our technology, data intelligence, and expertise. InsureMyTrip is based in the U.S. with an office in Toronto.
Not available to Quebec residents.
CONTACT: Julie Loffredi InsureMyTrip jloffredi@insuremytrip.com
