How Much Does Travel Insurance Cost? The Price of Travel Insurance in 2026

The Different Types of Policies (And What They’ll Cost You)

Not all travel insurance is created equal, and the type you choose will have a significant impact on your wallet. Let’s break down the main categories so you know what you’re actually paying for.

Basic Plans: These are your entry-level option, averaging around $125 for a $5,000 trip. They cover the essentials like trip cancellation and lost baggage, but medical coverage is capped at $25,000 to $50,000, which might not cut it if you have a serious emergency abroad. Think of these as good for shorter domestic trips or situations where you already have solid health insurance that travels with you.

Comprehensive Plans: This is where most people land, and for good reason. These plans average $227 for a $5,000 trip and provide $100,000 to $150,000 in medical coverage plus up to $1 million in evacuation protection. That extra hundred bucks over the basic plan buys you significantly better protection, especially if you’re heading somewhere with expensive healthcare or limited medical facilities. These policies bundle trip cancellation, medical coverage, baggage protection, and emergency evacuation into a single package.

Premium Plans: For those booking once-in-a-lifetime trips or anyone over 70, premium plans run around $345 for a $5,000 trip and max out at $250,000+ in medical coverage. They often include options for cancel-for-any-reason coverage, which we’ll talk about in a minute. If you’re spending serious money on your trip or doing adventure activities, this tier makes sense.

Medical-Only Plans: If your primary concern is healthcare costs abroad and you’re not worried about canceling, medical-only travel insurance averages $90.57, or roughly $4.53 per day. These skip trip cancellation benefits but offer solid medical and evacuation coverage. They’re perfect for longer trips where most of your costs are refundable, or for stays with friends and family.

Annual Plans: For the frequent travelers among us, multi-trip yearly insurance can be a game-changer. At an average cost of less than $1 per day, annual plans are much more affordable if you take more than three trips per year. The trade-off is that coverage limits are typically lower than those of single-trip plans, and not all annual plans include robust trip cancellation coverage. But if you’re the type who’s always got a weekend getaway booked, the convenience alone might be worth it.

What Actually Affects Your Price

Understanding what drives your premium up or down helps you make smarter choices about what to pay for. Here are the significant factors that’ll impact your final cost.

Your Age: This is huge. A 30-year-old pays around $197 for a $5,000 trip, while a 65-year-old pays $394 for the same coverage. By age 75, you’re looking at $552 or more, which is about 180% more than what younger travelers pay. If you’re booking a trip with parents or older relatives, factor in that their coverage will cost significantly more than yours.

Trip Cost: The more expensive your trip, the more you’ll pay to insure it. Makes sense when you think about it because the insurance company is on the hook for more if you need to cancel. This is calculated as a percentage, so a $10,000 trip will cost roughly twice as much to insure as a $5,000 trip.

Destination: Where you’re going matters more than you might think. Destinations like Canada and Western Europe maintain baseline rates around $200, while India, Brazil, and Morocco can cost $275 to $290 for identical coverage. This reflects the cost and accessibility of healthcare in different regions. Destination can add up to 45% to your price, depending on the medical infrastructure.

Trip Length: Longer trips mean more opportunities for something to go wrong, so prices scale accordingly. A two-week trip will cost more than a long weekend, even if the total trip cost is similar.

Add-Ons and Upgrades: This is where costs can really climb, but some add-ons are worth considering depending on your situation.

The Cancel For Any Reason Add-On (CFAR)

This is the upgrade everyone talks about, and it’s worth understanding because it can either be a lifesaver or a waste of money depending on your circumstances. CFAR allows you to get reimbursed for 50% to 75% of your prepaid, non-refundable expenses if you cancel for literally any reason, even something as vague as “I just don’t feel like going anymore.”

Regular trip cancellation coverage only reimburses you for specific covered reasons like illness, death in the family, natural disasters at your destination, or jury duty. CFAR removes almost all restrictions, giving you flexibility if you’re booking something far in advance and life is particularly unpredictable right now.

The catch is the price. Adding CFAR typically increases your premiums by 40% to 50%. The average CFAR policy costs $696, compared to around $300 for a standard comprehensive plan. You also have to meet specific requirements even to qualify: you must purchase your policy within 14 to 21 days after your first trip payment, insure 100% of your prepaid expenses, and cancel at least 2 to 3 days before departure.

Is it worth it? Suppose you’re booking an expensive trip more than six months out and you know your life circumstances are up in the air (job instability, health concerns, relationship uncertainty). In that case, CFAR can provide profound peace of mind. But if you’re booking a simple beach vacation two months out and most of your costs are refundable anyway, the standard trip cancellation coverage is fine.

Pre-Existing Conditions Coverage

Here’s something important that doesn’t actually cost extra if you play your cards right. Many comprehensive travel insurance plans cover pre-existing medical conditions at no additional charge if you qualify for a pre-existing medical conditions waiver. The key is timing: you typically need to purchase your insurance within 14 to 21 days of making your first trip payment and insure your entire trip cost. If you or someone traveling with you has a chronic condition, this essential coverage can help you avoid massive out-of-pocket costs.

Real-World Pricing Examples

Let’s make this concrete with some actual scenarios. For a basic $3,000 beach vacation, you’re looking at $120 to $240 for insurance. That protects you if you get food poisoning the day before and can’t travel, or if a hurricane forces you to evacuate mid-trip.

For a $10,000 European adventure, budget $400-$800. This might sound steep until you consider that a medical evacuation from a remote location can cost tens of thousands of dollars. Travelers to Italy spend more on travel insurance, on average, than those to Mexico, reflecting both trip costs and travel patterns.

If you’re a digital nomad or frequent traveler taking multiple international trips per year, an annual plan might run you $300 to $500 upfront. Compare that to buying three or four separate policies at $150 to $300 each, and the annual plan quickly pays for itself.

When It’s Actually Worth It

Travel insurance makes the most sense when you have significant non-refundable costs at stake. If you’ve paid thousands upfront for flights, hotels, tours, and that cooking class you booked months ago, insurance protects that investment. It’s also crucial if you’re traveling somewhere with expensive healthcare (basically anywhere outside your home country if you’re American) or limited medical facilities.

On the flip side, if most of your trip is refundable or you’re staying domestic with good health insurance that travels with you, you might not need comprehensive coverage. Many credit cards offer basic trip cancellation and interruption coverage when you use them to book travel, though the limits are typically lower than standalone policies.

If you’re heading somewhere remote, doing adventure activities, or traveling with elderly relatives, the medical and evacuation coverage alone justifies the cost. Emergency medical evacuation coverage provides services such as air evacuation and transportation to the nearest adequate medical facility, which can easily cost more than your entire trip if you need them.

Shopping Smart

Here’s my honest advice after looking at all these numbers: get quotes from multiple providers, because prices vary wildly even for identical coverage. Don’t automatically buy insurance from the airline or tour company at checkout, because airlines charge more for travel insurance and offer limited coverage compared to standalone policies.

Read the actual policy, boring as it is, so you know what’s excluded. Most standard policies don’t cover things like changing your mind, fear of travel, work obligations, or pre-existing conditions (unless you got that waiver we talked about). Some exclude extreme sports, so if you’re planning to go skydiving or scuba diving, make sure your policy covers adventure activities.

Consider your existing coverage before buying. Check whether your health insurance covers you abroad, what your credit card offers, and whether you have other policies that might apply. You might already have more protection than you think.

The Final Word

For most people planning international trips or expensive domestic travel, spending 4% to 8% of their trip cost on insurance is a reasonable investment. It’s not sexy, it’s not fun to think about, and hopefully you’ll never actually use it. But that’s the whole point of insurance.

Think of it this way: you’re already spending hundreds or thousands on this trip. Another couple of hundred dollars to protect that investment and give yourself peace of mind is usually worth it. Just make sure you’re buying the correct type of coverage for your actual needs, not paying for add-ons you don’t need or skimping on protection that could save you thousands.

And do it within those first 14 to 21 days after booking to maximize your coverage options. In the future, you will either be happy you did, or you’ll never think about it again because your trip went perfectly. Either way, that’s a win.

Looking for travel insurance reviews? Here’s how we ranked the best travel insurance providers.