Travel insurance can be a lifesaver for U.S. travelers, offering financial protection against unexpected events like trip cancellations, medical emergencies, or lost baggage. But how much does it actually cost, and what factors influence the price? This blog provides a detailed breakdown of travel insurance costs in the USA, tailored for American travelers planning domestic or international trips in 2025. Drawing from recent research, we’ll explore average costs, key factors, types of coverage, and tips to find affordable plans.

Average Cost of Travel Insurance

According to Forbes Advisor’s 2025 analysis, the average cost of travel insurance in the USA ranges from 4% to 6% of your total trip cost. For example, a $5,000 trip would typically cost between $200 and $300 to insure. Squaremouth, a leading travel insurance comparison site, reports an average premium of $311 for a 15-day trip, or about $21 per day. However, costs can vary significantly based on several factors, with some policies as low as $44 for basic coverage and others reaching $1,050 for premium plans on expensive trips.

NerdWallet’s 2024 analysis aligns with this, suggesting an average of 7% of trip cost, meaning a $1,000 trip might cost $70 to insure, while a $10,000 trip could range from $400 to $1,000 for comprehensive coverage. These figures highlight that while travel insurance is generally affordable, the price depends heavily on your trip details and coverage needs.

Factors Influencing Travel Insurance Costs

Several variables determine the cost of travel insurance. Understanding these can help U.S. travelers budget effectively and choose the right plan.

1. Total Trip Cost

The most significant factor is the prepaid, non-refundable portion of your trip cost, such as flights, hotels, or tours. Higher trip costs lead to higher premiums because the insurer faces a larger payout if you cancel. For instance, insuring a $20,000 luxury trip could cost $800 to $1,200, compared to $59 for a $1,000 domestic getaway.

2. Age of Travelers

Age plays a big role, especially for seniors. Forbes Advisor notes that an 80-year-old might pay $628 more on average than a 20-year-old for the same policy due to increased health risks. Seniors often face premiums 7% to 17% higher than younger travelers.

3. Trip Length

Longer trips increase the risk of something going wrong, raising premiums. Squaremouth data shows that a 14-day trip costs $3.81 per day to insure, while a 3-day trip averages $15.40 per day, making longer trips more cost-effective per day.

4. Type and Extent of Coverage

The level of coverage you choose significantly impacts cost. Basic plans with lower limits for medical expenses or baggage loss are cheaper, while comprehensive plans with higher limits or add-ons like Cancel for Any Reason (CFAR) are pricier. For example, a policy with CFAR can cost 50% more, adding about $150 to a $232 base policy.

5. Number of Travelers

Insuring multiple people increases the premium, though the increase is often minimal. A family of four on a $5,000 trip might pay slightly more than a couple, but family plans like Berkshire Hathaway’s ExactCare offer discounts, such as covering two children per insured adult.

6. Destination

Domestic trips are generally cheaper to insure than international ones due to lower medical and evacuation costs in the USA. For example, a policy for a U.S. trip might cost $84 to $397, while international trips could push premiums higher due to expensive healthcare systems abroad.

Types of Travel Insurance and Their Costs

Travel insurance comes in various forms, each with different price points. Here’s a breakdown of common types and their typical costs:

• Comprehensive Plans: These cover trip cancellation, interruption, medical emergencies, baggage loss, and delays. They cost 4% to 10% of trip cost ($200–$500 for a $5,000 trip). Examples include Allianz’s OneTrip Prime or Travelex’s Travel Select.
• Medical-Only Plans: Focused on health emergencies, these are cheaper, starting at $0.50 to $24.57 per day, depending on age and coverage limits. WorldTrips’ Atlas Travel plan, for instance, ranges from $3.50 to $171.99 for a week.
• Cancel for Any Reason (CFAR): An add-on that reimburses 50% to 75% of trip costs for any cancellation reason, increasing costs by 24% to 165%. A $232 policy might jump to $381 with CFAR.
• Annual/Multi-Trip Plans: Ideal for frequent travelers, these cost $200–$600 per year, depending on coverage limits, offering savings for multiple trips.
• Rental Car Damage: Covers vehicle damage for $10–$50 per trip, a cost-effective add-on for road trippers.

Why Travel Insurance Costs Vary

Costs vary because insurers assess risk based on your trip’s specifics. A luxury international trip with high non-refundable costs carries more risk than a short domestic getaway. Older travelers or those with pre-existing conditions may face higher premiums due to potential medical claims. Posts on X highlight that emergency room visits in the USA can exceed $5,000, underscoring the value of medical coverage for international visitors or domestic travelers without health insurance abroad.

Tips to Save on Travel Insurance

• Compare Quotes: Use platforms like Squaremouth or InsureMyTrip to compare rates from multiple providers. This can save you hundreds, as prices vary widely.
• Check Credit Card Benefits: Many travel credit cards, like Visa or Mastercard, offer free trip cancellation or delay coverage, though limits may be lower.
• Opt for Higher Deductibles: Choosing a higher deductible, like $5,000, can lower premiums, as seen in WorldTrips’ Atlas Travel plans.
• Buy Early: Purchasing within 14–21 days of booking can unlock waivers for pre-existing conditions and lower rates.
• Tailor Coverage: Skip unnecessary add-ons like adventure sports coverage if you’re not participating in high-risk activities.

Is Travel Insurance Worth It?

An AAA survey found that 88% of travelers value reimbursement for trip cancellations most. With emergency medical evacuations costing $15,000 to $200,000, travel insurance can save you from financial ruin. For instance, a comprehensive plan for a $2,000 domestic trip might cost $100–$120, a small price for peace of mind. Always read the fine print to understand exclusions, like pre-existing conditions or pandemics, to ensure the policy meets your needs.

Conclusion

Travel insurance costs in the USA typically range from 4% to 10% of your trip cost, with an average of $311 for a 15-day trip. Factors like trip cost, age, trip length, coverage type, and destination drive these costs. By comparing quotes, checking existing coverage, and tailoring your plan, you can find affordable protection for your next adventure. Whether it’s a weekend getaway or an international cruise, travel insurance offers peace of mind for U.S. travelers in 2025.