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Summer already feels like a distant memory, but that’s a good thing when it comes to travel insurance costs and travel expenses in general. According to Squaremouth travel agency, the average cost of insuring a trip is currently $238.38, down 16.7% from average prices a month ago.
Travel insurance weekly tariffs at a glance:
Average premium: $238.38
Average trip cost: $4,969.97
Average travel time: 16 days
Average travel insurance costs by most popular travel destinations
Of course, some countries are more expensive destinations due to higher flight and accommodation costs, which could ultimately increase your travel insurance costs. But when costs are controlled, the destination doesn’t change how much you spend to insure your trip.
This is how the prices are made up:
When people take out travel insurance
According to an AAA travel survey, 88% of travelers say reimbursement after a trip cancellation is the most valuable travel insurance benefit.
According to data SquareMouth has collected over the past six months, travelers typically purchase cancellation insurance 53 days before their trip. Travelers without travel cancellation insurance take out a policy about 16 days before their trip.
Average cost of travel insurance by age
A traveler’s age is a key factor in determining the cost of travel insurance. The older a traveler is, the more costs are associated with the trip. For example, an older traveler may need more insurance for health emergencies than a millennial.
When calculating your travel insurance premium, travel insurance providers consider the likelihood of a medical emergency.
What does travel insurance cover?
Travel insurance can help you reimburse non-refundable portions of your trip or help you if you are injured or encounter an emergency.
Travel insurance covers six main aspects:
- Trip cancellation or curtailment
- travel delays
- Medical expenses during the trip
- Baggage damage, delay or loss
- emergency transport
- rental car damage
If you have a credit card, you may already have access to some of these coverages without purchasing separate travel insurance. Many airline credit cards or travel credit cards offer trip cancellation, delay, and baggage insurance. For example, the Chase Sapphire Reserve and Chase Sapphire Preferred cards both offer some travel insurance, including trip cancellation, disruption and delays, delayed luggage, car rentals, accidental death and personal injury.
Before purchasing travel insurance, you must ensure that the terms meet your needs or concerns. This is especially important during the COVID-19 pandemic – each travel insurance company has unique reimbursement and cancellation policies due to this event. Read the fine print of travel insurance before you buy it.