Is travel insurance expensive? Why should I have it?
Travel insurance, like just about anything else you buy, has a price you pay and value you derive from it.
In the case of travel insurance, the price is typically between 5% and 10% of your total trip cost, with the price based on several simple factors such as:
- Your age
- How much you’re spending on your trip
- The length of your trip
- The number of people covered under your policy
- How far out you are from your departure date
- And for some plans, how many flight segments your trip has.
These factors totaled up tell the insurance company how much of a risk you might be, and that risk determines much of the cost.
Age
In general, the older you are the more you should expect to pay for travel insurance.
Why? Because trip cancellation is the No. 1 factor in determining travel insurance pricing – and the older you are, the more likely you are to cancel your trip. Decades of historical data support that fact.
Not every company gives age the same weight when they set their rates. It’s a good idea to compare plans, coverage, and rates before you buy.
Trip cost
The prepaid, non-refundable cost of a trip is a big factor in the cost of travel insurance, because the more you pay upfront for a trip the more the insurance company might have to pay if you cancel or interrupt that trip.
Plan design
In general, basic travel insurance plans are cheaper than luxury plans because they often have fewer covered cancellation reasons and lower medical, medical evacuation, and baggage limits.
However, the price difference between a less expensive plan and a more expensive plan may not be as great as the difference in coverage between the two plans. So, compare before you buy.
Even if you don’t think you need more coverage, get a quote on a basic plan and a more expensive plan, just to see how much more coverage the more expensive plan provides.
Number of people covered under your policy
A single travel policy can cover multiple family members, with each traveler paying their own premium.
Families traveling with children can also benefit from the family-friendly pricing found in ExactCare®, where coverage for two children is included in the premium of every insured adult, provided the child’s trip cost is equal to or less than the lowest adult’s trip cost.
Trip length
The longer the trip, the greater the chance something might happen. In addition, longer trips tend to be more expensive.
Plan options
Often during the travel insurance quote process, you’ll be shown the cost of optional, add-on coverages.
These optional coverages can give you extra peace of mind – in the form of cancellation for any reason or collision coverage for your rental car.
- Cancel For Any Reason coverage is available on LuxuryCare® and can only be added at the time of purchasing the LuxuryCare plan.
- Car Rental Collision coverage is available on most plans and provides much needed protection when renting a car when traveling.
Value
Regardless of how much a travel insurance plan costs, its value to you will be determined when you need it.
When an emergency strikes and travel insurance helps pay your medical bills, evacuate you, or get you back home when you have to interrupt a trip, it more than justifies its cost.
If the possibility of those unexpected travel expenses concerns you, and you’d like a quote from Berkshire Hathaway Travel Protection, we’ve made that easy. Just click here.