How Much Does Travel Insurance Cost in 2025?
Key Takeaways:
- The average cost of travel insurance is roughly $20.50 per day based on data from the past 12 months.
- This number is based on data from more than 250,000 travelers who used Squaremouth to protect their trips within the past year (March 2024 – 2025).
- With an average trip length of 16 days, travelers spent an average of $327 per policy.
- As a rule of thumb, comprehensive travel insurance plans cost between 4-10% of your prepaid, non-refundable trip costs.
- To see exact prices for your trip, try our instant quote tool and compare prices from multiple providers at once.
Will travel insurance be cheaper in 2025?
Industry trends show that the average cost of travel insurance will increase in 2025.
Since the start of 2025, spending on travel insurance has increased by roughly $2.00 versus the same period last year. The average cost of travel insurance from January 2025 to March 2025 is roughly $22.50 per day.
That said, traveler spending has also increased with at least 40% of Squaremouth visitors surveyed reporting that they were planning to take at least one bucket list trip in 2025. Trip cost is one of the biggest determining factors when calculating the cost of travel insurance.
For exact pricing, try using our travel insurance price comparison tool to get quotes from multiple providers at once.
Here is a look at how the average cost of travel insurance in 2025 changes based on trip parameters.
Average Cost of Travel Insurance by Destination
Below is a list of the most common destinations for travel insurance customers and the average cost of travel insurance policies by destination.
Travelers to Mexico spend the least on travel insurance, while travelers to Italy spend the most.
| Location | Average Cost Per Day | Average Premium | Average Trip Length |
| Mexico | $17.33 | $173.33 | 10 |
| Bahamas | $25.40 | $177.80 | 7 |
| United States | $20.57 | $246.81 | 12 |
| Canada | $20.08 | $261.09 | 13 |
| United Kingdom | $16.01 | $288.10 | 18 |
| Japan | $16.27 | $309.15 | 19 |
| Spain | $16.64 | $316.21 | 19 |
| France | $18.27 | $328.91 | 18 |
| Portugal | $17.76 | $337.53 | 19 |
| Italy | $21.80 | $370.52 | 17 |
Average Cost of Travel Insurance by Age
Age is one of the top factors that affect the cost of travel insurance. The chart below shows a travel insurance price comparison broken down by generation.
Senior travelers and children cost notably more to insure on average due to increased health risks at these ages. Millennials pay the least on average for travel insurance but also spend less on their trips which contributes to paying a lower average price for travel insurance.
| Generation | Average Cost Per Day | Average Premium | Average Trip Length | Average Trip Cost |
| Gen Alpha (2013 or later) | $22.70 | $295.14 | 13 | $6,735.51 |
| Gen Z (1997-2012) | $14.39 | $230.27 | 16 | $5,084.30 |
| Millennial (1981-1996) | $13.15 | $184.05 | 14 | $3,885.57 |
| Gen X (1965-1980) | $19.75 | $276.50 | 14 | $8,212.82 |
| Baby Boomers (1946-1964) | $28.82 | $461.14 | 16 | $5,592.84 |
| Silent (1945 or before) | $45.10 | $766.62 | 17 | $6,444.40 |
Average Cost of Travel Insurance by Type of Plan
Medical travel insurance is the cheapest type of travel insurance you can buy. It typically includes coverage for medical scenarios and not much else. Comprehensive travel insurance can cover medical scenarios but often includes full reimbursement coverage for trip cancellations, baggage delays, trip interruptions, and more.
| Type of Policy | Average Cost Per Day | Average Premium | Average Trip Length |
| Medical-Only Travel Insurance | $4.52 | $89.46 | 19.79 |
| Comprehensive Travel Insurance | $28.69 | $400.28 | 13.95 |
The average cost of medical travel insurance is roughly $4.50 per day whereas comprehensive travel insurance costs an average of $28.70 per day.
That said, these prices are small in comparison to the massive benefits you receive if you ever need to file a claim for reimbursement.
Factors that affect the cost of travel insurance
There are five key factors that help travel insurance companies determine premiums:
- Your total trip cost
- Your Age
- The Trip length
- The type of policy
- Your coverage limits
Other factors that can impact the cost of certain policies include your state of residence, destination, and any policy add-ons you may want to include as part of your coverage.
Total Trip Cost
Your total trip cost is one of the biggest factors that affects your final travel insurance price. If you purchase trip cancellation coverage, this is the amount that your travel insurance company could be forced to pay out if you file a claim.
Therefore, the cost of comprehensive travel insurance coverage is largely based on how much your trip costs. Your trip costs are the sum of all your prepaid, non-refundable expenses made towards your trip, such as flight tickets, accommodation expenses, rental car reservations, and other trip expenses you made in advance.
Your Age
Age is also one of the biggest factors that determine your travel insurance cost. Typically, the cost of travel insurance increases with age.
Older travelers present a greater risk due to declining health and propensity to injury. Therefore, it’s no surprise that senior travelers pay a higher premium than most travelers.
Bear in mind that some travel insurance policies also include age limits, so it’s important to review all age-related information when buying your policy to avoid having a claim denied due to ineligibility.
Trip Length
The longer your trip, the higher the risk of a travel accident occurring while you’re away. For this reason, travel insurance providers charge more for insuring longer trips.
Travel insurance covers you from the moment you leave home until the day you return, and most travel insurance companies allow a Maximum Trip Length of 90 days. If your trip exceeds 90 days, you may be required to apply for a temporary visa and purchase medical insurance that lasts for the duration of your extended stay.
Type of Policy
The type of policy you choose also has a big impact on how much travel insurance costs you. You have the option of choosing medical-only travel insurance or a comprehensive travel insurance policy.
Coverage inclusions vary by provider, but in general, medical travel insurance is the cheapest travel insurance on the market and covers you for emergency medical treatment, medical evacuations, and repatriation. Comprehensive travel insurance is more expensive and includes a slew of other benefits, namely reimbursement for trip cancellations and interruptions.
Comprehensive travel insurance is the most expensive as these plans can often reimburse you for up to 150% of your total trip costs.
Coverage Limits
Travel insurance coverage limits vary significantly from one plan to the next, especially when it comes to medical coverage. Policies with higher amounts of coverage are often more expensive.
The higher the coverage limits, the more protection the policy provides. This correlates to more costs being absorbed by the insurer in the event that you file a claim. Therefore, higher coverage limits come at a higher price to the customer.
The best travel insurance companies offer plans that balance affordability with strong coverage across all benefits.
Optional Coverage That Will Directly Increase Your Policy’s Premium
Certain travel insurance benefits are considered add-ons or “optional upgrades” and will directly increase the cost of policies. Those benefits include Cancel For Any Reason, Pre-Existing Condition, Accidental Death and Dismemberment, and Rental Car Damage.
Cancel For Any Reason
Cancel For Any Reason (CFAR) partially refunds your trip payments if you cancel for a reason not explicitly covered by your policy. This benefit is only available for up to 30 days after your initial trip booking and will generally increase your policy’s premium by about 40-50%. In 2025, the average CFAR policy costs travelers $632.
Accidental Death and Dismemberment
Accidental Death and Dismemberment (AD&D) is the only travel insurance benefit that provides a lump sum payment to travelers. There are three types of AD&D protection: 24 Hour AD&D, Flight Only AD&D, and Common Carrier AD&D. This coverage will pay a predetermined amount in the event of loss of life or a limb during your trip.
Rental Car Damage
Coverage for Rental Car Damage is an optional add-on that many providers offer. This benefit can cover the cost of damage or theft of a rental vehicle during your trip.
Methodology: How we found the average cost of travel insurance
As America’s largest travel insurance marketplace, Squaremouth.com hosts travel insurance policies from over 20 major providers in the industry. Using data from Squaremouth’s internal quoting and comparison engine, the Squaremouth Analytics team studies data from thousands of travel insurance policy sales to highlight the most notable industry trends.
Our data allows us to analyze real-time shifts in traveler behavior and to reveal the most common trends and data points among travelers.
To arrive at the average cost of travel insurance, we analyzed internal data from over 250,000 travel insurance policies sold from March 2024 – March 2025.
We segmented the data based on the parameters outlined in this article by:
- Destination
- Age group
- Type of plan coverage
Determining the average cost of travel insurance for such a large sample group is challenging due to the complex nature of travel insurance plans.
To provide a baseline, we took the average premium from travelers in each sample group and divided it by the average trip length, to account for the varying lengths of trips that people take.
These numbers are meant to serve as examples and are nonbinding. The actual cost you pay for travel insurance depends on the specific parameters of your trip and traveler profile.
To see exact pricing for travel insurance for your trip, get a travel insurance quote and compare plans and prices from multiple providers at once.
FAQs: Travel Insurance Cost
Why are some travel insurance plans more expensive than others?
Travel insurance costs vary from one traveler to the next and depend on multiple factors, including your total trip cost, the number of travelers in your party, traveler ages, trip length, coverage requirements, and policy type.
Each travel insurance provider calculates premiums slightly differently to cater to its target demographic. This explains why you may find two companies offering nearly identical policies at different prices.
Do Higher Premiums Mean Better Coverage?
High premiums do not always equate to better protection. When choosing between similar policies that meet your coverage needs, we always recommend opting for the less expensive plan.
Purchasing travel insurance through sites like Squaremouth allows you to see how plans from the best travel insurance companies compare when it comes to price and coverage.
Shopping around for travel insurance can also help you find more affordable protection compared to plans offered through airlines, cruise lines, hotels, and other travel suppliers.