As part of the trip-planning process, a lot of travelers are thinking about trip and travel insurance. While people may know that travel medical insurance ensures that they are covered for certain medical costs incurred while traveling abroad and that trip insurance can offer financial protections should they need to cancel trip plans, there’s one thing that still mystifies even the savviest traveler: the cost of travel insurance.
So, how much does basic trip and travel insurance cost?
While the cost of trip and travel insurance can vary depending on factors like the age and health needs of the insured and the duration of their trip, we can give you some travel insurance cost range estimates:
- The average trip insurance cost ranges between $110 - $200
- The average travel medical insurance cost ranges between $200 - $400
Keep in mind that these figures are only estimated ranges based on current figures. Your specific needs will dictate the actual cost of your policy premium. Paying for travel insurance makes sense when you weigh the extra cost against the much higher financial risk of losing your trip investment, not to mention incurring significant medical expenses.
Let’s say your seven-day domestic U.S. trip includes accommodations, flights, spending money, event tickets, and car rental. You could be looking at expenses totalling well over $2000 per person. In this case, spending $200 to protect your investment would be a good move. In other words, if your luggage is missing or damaged, your flight is canceled, or you need to change your travel plans for a covered reason like a natural disaster, you would be covered.
Travel insurance becomes even more important if you’re considering international travel. Your domestic health insurance won’t cover you while you’re abroad. In fact, in light of the pandemic, many countries like Costa Rica, Jamaica, and Cuba have made travel medical insurance a requirement for entry.
Even if your destination country doesn't require travel insurance, it's still strongly recommended. If you sustain an injury or contract an illness like COVID-19 while abroad, you and your loved ones (and your bank account!) will be glad you paid a little extra for travel medical insurance.
Imagine you’re taking a seven-day vacation in Mexico. While you’re having the time of your life in Cancun, you or one of your travel companions fall ill and need medical attention. Without travel medical insurance, you could be facing a serious financial blow from high-cost medical expenses. Spending a few hundred dollars for travel insurance could save you from having to spend thousands of dollars for proper medical care.
How much do IFAR and CFAR benefits cost?
If you need the flexibility to cancel or interrupt your trip for any reason at all, IFAR, or Interruption For Any Reason and CFAR, or Cancel For Any Reason, can help. These are two of the most popular add-on benefits to traditional trip insurance. The advantages of these two options are pretty self-explanatory. IFAR allows you to interrupt your trip plans for literally any reason, and CFAR allows you to cancel your plans for literally any reason.
Maybe you’re vacationing in Hawaii and a family emergency back home comes up. If you buy IFAR insurance with your basic trip insurance, you can cut your vacation short and still recoup certain financial losses from any unused days, event tickets, or excursions. Or maybe you book your trip far in advance and as the departure date rolls around, you just no longer feel up to going. With Cancel For Any Reason coverage, you can cancel your trip ahead of time and recoup certain prepaid trip expenses.
But how much do these benefits cost? Typically CFAR and IFAR can be purchased for an additional 50% of your basic policy premium. That means that if your basic trip insurance policy costs $150.00, the flexibility and security CFAR and IFAR can give you will cost about $75.00.
It's much better to have travel insurance and not need it, than to need it and not have it. Paying a little extra up front for good quality coverage can give you peace of mind, which is essential for any great vacation.