7 Cheap Travel Insurance Companies Worth The Cost (2024)
The 7 Best Cheap Travel Insurance Companies Worth the Cost
Here are our picks for the cheapest travel insurance companies, ranked by lowest average costs across various plan levels.
How We Chose the Cheapest Travel Insurance Companies
To determine the cheapest travel insurance plan options, Marketwatch Guides gathered sample quotes for all plan options offered by 24 travel insurance companies for eight trips with varying traveler ages, destinations, number of travelers and trip costs, which are outlined in our methodology. Total trip prices ranged from $1,800 to $8,000, with destinations to Mexico, England, France, Greece, Spain, Italy and Ireland.
The following table compares each company’s average plan cost, cheapest plan option and BBB rating.
Our team reviewed travel insurance companies in-depth to provide the most accurate and up-to-date pricing information available. While your policy price will vary based on your trip details, traveler ages, number of travelers, destination and more, we took the following steps when collecting data to get a full scope of industry pricing.
- Overall cost averages: We pulled individual quotes for 24 travel insurance companies and 75 travel insurance policies for eight trip profiles in April 2024. The trips we collected quotes for are the following:
- 30-year-old couple taking a $5,000 vacation to Mexico
- 65-year-old couple taking a $7,000 vacation to London
- 30-year-old couple taking a $7,000 trip to London
- Family of 4 taking an $8,000 vacation to Mexico
- 19-year-old taking a $2,000 trip to Paris, France
- 27-year-old taking a $1,800 trip to Athens, Greece
- 23-year-old taking a $4,000 trip to Europe (Italy, Spain, Ireland, Greece, longest time spent in Italy)
- 51-year-old taking a $2,000 vacation to Madrid, Spain
- Cost data by provider: To figure out how the average cost for each provider, we collected sample quotes for all the insurance policies they offer. Then, we took the average of these estimates for each type of trip across all their policies to find out the provider’s average cost.
- Cost data by age: We evaluated cost data for seven ages in increments of ten years starting at 20 years old. We collected 20 sample quotes for each age and averaged them to get the typical cost for that age group. Sample quotes were collected for a variety of policies, from medical-only to comprehensive travel insurance plans.
- Cost data by number of travelers: We looked at sample quotes for four groups of travelers going on a trip to the UK for two weeks. We collected 25 sample quotes for each group and averaged them. The group details are as follows:
- One 30-year-old traveler
- A 30-year-old couple
- Two 30-year-old adults and one 5-year-old child
- Two 30-year-old adults, one 5-year-old child and one 7-year-old child
- Cost by trip price: To get accurate pricing by trip price, we collected 20 quotes each for 11 differently priced trips. We started at a $1,000 trip and increased the trip price by $1,000 increments until $10,000, then collected quotes for a $15,000 trip. We averaged the 20 quotes for each trip.
We manually collected all cost information from each company’s respective website.
Cheap Travel Insurance Plans in Detail
How Much Does Travel Insurance Cost?
After gathering quotes for various traveler profiles from top providers in the industry, our team found that travel insurance costs anywhere from $35 to $765. However, the cheapest travel insurance companies on our list average $188 per trip. After averaging quotes across traveler profiles, we found that Nationwide offers the most affordable basic travel insurance coverage, with an average policy costing $132.
Note that the cost of a travel insurance policy will depend on factors like your destination, number of travelers, traveler ages, length of the trip and total trip cost.
MarketWatch Guides Tip
Keep in mind that cheaper policies often mean lower coverage. Be sure to review the trip interruption and cancellation coverage percentages, baggage loss coverage, flight connection coverage, medical maximums, and medical evacuation maximums to find out if a low-cost plan is really worth it if you aren’t fully covered. Search for policies with 100%+ cancellation and interruption coverage and offer over $500,000 in medical coverage.
To help you better understand how these factors can affect your travel insurance costs, we’ve outlined several traveler profiles and the average cost of coverage for each in the table below.
| Traveler Profile | Plan |
|---|---|
| 30-year-old couple taking a $5,000 trip to Mexico | $204 |
| Family of four taking an $8,000 vacation to Mexico | $313 |
| 65-year-old couple taking a $7,000 trip to London | $484 |
| 30-year-old couple taking a $7,000 trip to London | $269 |
| 19-year-old taking a $2,000 trip to Paris | $83 |
| 27-year-old taking a $1,800 trip to Athens | $85 |
| 51-year-old taking a $2,000 vacation to Madrid | $113 |
*We calculated average plan costs by obtaining quotes from each provider in our review across all available plans in April 2024.
“Travel insurance is a way for insurance companies to manage the statistical probabilities of various risks on behalf of travelers. Travel insurance premiums are calculated based on various factors, including the destination, traveler’s age and other conditions, estimating the associated risk and price insurance accordingly.”
Factors That Affect Travel Insurance Cost
Travel insurance is not a one-size-fits-all plan. Several factors determine the cost of your travel insurance, which we’ve listed below.
- Age: Many travel insurance companies increase costs and coverage amounts with age. You should expect to pay more the older you are, as age often correlates with increased risk. Typically, prices are the same for travelers up to age 50 and increase from there.
- Plan type: There are many different types of travel insurance policies. The more protection you need, the more expensive your travel insurance will be. Some basic plans may only provide flight or medical protection, so those will be the cheapest. If your plan covers multiple means of travel (like flights, rental cars, a cruise, etc.) or more risk-prone sports (like rock climbing), you’ll pay more.
- Add-on coverages: Most plans allow you to add certain features without having to upgrade your entire plan. For example, you may be able to buy basic flight insurance for $30 and add CFAR coverage for an additional $30.
- Number of travelers: While you can buy a single policy for multiple travelers, each traveler will have their own premium, which increases the total cost of the travel insurance. However, many travel insurance companies offer group-rate discounts.
- Trip cost: The more expensive your trip, the more it would cost the travel insurance company to reimburse it. As such, your travel insurance premium will increase alongside your reported total trip cost.
- Trip length: Another no-brainer — the longer the trip, the more you’ll pay for travel insurance. Longer trips are not only more expensive but also increase the chances of something going wrong.
- Destination: Your travel insurance provider will take the risk factor of your trip destination into consideration when determining the cost of travel insurance. It’s less focused on crime statistics and more focused on the likelihood of danger. For example, if you’re embarking on a rural jungle adventure, you’ll probably have a more expensive travel insurance cost compared to staying in a populous city with a high crime rate.
How To Find Cheap Travel Insurance
Protecting your vacation with travel insurance does not have to break the bank. Consider these tips to find the best possible pricing on travel coverage for your upcoming trip.
Compare Travel Insurance Quotes
Every travel insurance company uses an in-house underwriting formula to determine how much you’ll pay for travel insurance. It’s possible to find the same level of travel insurance from five different travel insurance companies at five different price points.
The only way to know which travel insurance company has the most affordable coverage for your trip is to get a quote from multiple providers. We recommend getting a quote from at least three competing travel insurance companies before making your final choice. While getting a quote takes only a few minutes, it could end up saving you hundreds of dollars on insurance.
Determine the Right Amount of Coverage
Another way to save money on travel insurance is to opt for a policy with only the coverages that you need. For example, most travel insurance providers offer the option to add CFAR coverage, which entitles you to reimbursement for travel expenses no matter why you need to cancel your trip. While this add-on can be convenient, it is also expensive, and you can save a significant amount on coverage by opting out. Once you confirm your travel plans, you can avoid unnecessary expenses by purchasing only the coverage you need.
Check Credit Card and Employer Benefits
Before purchasing travel insurance, it can be helpful to call your credit card company to learn more about your benefits. Many credit cards, such as Chase Sapphire Preferred, come with built-in perks, including rental car coverage, trip cancellation protection, and travel accident insurance. If you’re able to claim these coverages through your credit card company, you won’t need to buy added coverage through a travel insurer, saving you money.
If you’re traveling for business, you can ask if you have any coverage through your employer. Some large employers that fund corporate travel regularly broker discounted group travel plans for their employees, allowing you to avoid buying your own coverage. Even if your employer only offers a limited travel plan, you may only need to fund supplemental coverage to enjoy full travel protection.
Weigh the Value vs. the Cost
As you compare policy options and collect quotes, take the time to understand the exact coverage levels included in each plan. Sometimes, cheap travel insurance is cheap for a reason — a low-priced plan may exclude circumstances you expect coverage for, limiting the usefulness of your policy.
After getting a quote from a travel insurance provider, make a note of important policy details. For example, if you’re opting for CFAR coverage, how much will you be reimbursed if you cancel your trip? What types of medical conditions and injuries does your policy exclude? What is the maximum amount your insurance will pay if you miss a flight, must come home early or face another emergency? These important questions can help you compare policies and determine the value of your coverage.
What Does Travel Insurance Cover?
If you’ve never purchased it before, you might be wondering what travel insurance is and what it covers.
As we’ve seen by comparing companies and policies, travel insurance can cover a wide array of things. But some of the most basic coverages are as follows:
Trip cancellation protection: Compensates you for nonrefundable trip payments prepaid to your hotel, airline, cruise and other vendors if you’re forced to cancel your trip for a covered reason.
Trip interruption protection: Compensates you for nonrefundable trip expenses if you’re forced to leave your vacation early for a reason stated in your policy.
Baggage delay and loss: Compensates you for lost, stolen or delayed baggage costs.
Emergency medical expenses: This covers the cost of expenses if you’re injured, become ill or experience a medical issue on a trip. Some travel insurance plans also include coverage limits for dental costs.
“One critical factor in evaluating travel insurance policies is what constitutes a covered reason for a cancellation. In general, the cancellation usually must be due to unanticipated circumstances. Examples would possibly include medical treatment for injuries, death of a traveling companion, jury duty, losing your job and weather-related service disruptions.”
Common Add-Ons
If you buy a cheap travel insurance plan, it will likely only protect you from the most basic issues. But if you pay a little extra, you can add on coverage for things you might be more likely to need, including:
- Cancel-for-any-reason (CFAR) coverage: When you claim reimbursement through your travel insurance policy, you’ll need to prove why you’re canceling. With a CFAR upgrade, you can cancel your trip for any reason and still claim a percentage reimbursement on nonrefundable costs.
- Interrupt-for-any-reason (IFAR) coverage: IFAR coverage is similar to CFAR coverage except that it protects you starting 72 hours after your departure until the end of your trip. If you have to cut your trip short for any reason, IFAR will reimburse 75% of the total amount of coverage you purchased for any non-refundable travel arrangements.
- Collision coverage waiver: Extends your rental car coverage to include collision damage.
- Financial default: This type of coverage applies if your airline, resort or other trip vendor declares bankruptcy.
- Pre-existing conditions waiver: Most standard travel insurance policies exclude health conditions if you show symptoms before buying travel insurance. An add-on allows you to extend your coverage to waive pre-existing condition exclusions.
ASK THE EXPERTS
What Are the Top Money-saving Tips You Would Offer Travelers?
“In addition to the usual tactics of going budget on everything like airlines and hotels,
the key to real savings is asking yourself, ‘Why am I or we are taking the trip?’
If the trip is a more cultural and educational experience, such as for young kids, you can save by using public transportation, eating where locals go, and going to museums and cultural centers with free activities.”
Liping Cai, Ph.D
Professor and Director
Purdue University Tourism and Hospitality Research
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“There are multiple ways travelers can save on their vacations.
Start your trip mid-week: This may vary by destination, but in general, I’ve found that traveling on a Wednesday [or midweek] is a lot cheaper than on a Friday or Saturday.
Save on beverages: For many restaurants, beverages are some of the most profitable items. Substituting a few sodas and alcoholic drinks with store-bought water can help save some dollars.
Know your destination seasons: Some destinations are busier in the summers [and] others in the winter. However, the low season might be cheap for a reason. For example, you may be able to get a cheap hotel rate in Florida or the Caribbean during September, but keep in mind it’s the peak of the hurricane season.“
Edwin Torres, Ph.D
Department Chair and Associate Professor
Saunders College of Business at the Rochester Institute of Technology
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“To save money, travelers can consider planning ahead…
and look for deals on lodging, flights and fun activities. I also suggest travelers look at going a little more rustic, such as camping in a tent or staying in a yurt, which can be cheaper than a hotel.“
Connor Clark, Ph.D
Assistant Professor
Department of Hospitality, Hotel Management and Tourism at Texas A&M University
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“If you are traveling by air,
search your location and dates on the internet, then wait. Within 24 hours you will start getting targeted offers, some with more competitive prices. Use a metacrawler site, like Kayak, so you can compare prices from a variety of suppliers. Be careful and pay attention to the cancel-by dates if your agenda is fluid.
Select a safe and clean hotel and spend more money on tours, meals and theater to get a more authentic experience. Search out the beaten path of locally-owned restaurants and hotels to get a more authentic experience.”
Claudia Green, Ph.D
Director
International Management Program at the Pace University Lubin School of Business
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“Know what events may be happening in town…
and how they may impact your travel. Know what is in your price range and what is not. It is also important to build in an extra cushion for that unexpected expense. Most of the mistakes travelers make come from not doing proper research and thinking that one exception to the budget will not matter. The cost of traveling by rideshare versus taking the subway may change one’s entire budget, for example.“
Darron Kirkley
Instructor
College of Hospitality at University of South Carolina
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Is Cheaper Travel Insurance Worth It?
When deciding if travel insurance is worth it, we recommend you consider your personal circumstances before making any decisions about a policy. For example, if you’ve purchased an expensive airline ticket — especially one with multiple layovers — you may decide to purchase travel insurance to protect your investment. Travel medical insurance policies can also provide peace of mind around a potential medical emergency abroad, for example, if you are traveling to a remote location.
While many companies offer cheap travel insurance, not all policies are created equal. As you compare the best travel insurance plans, consider which coverages you can sacrifice to maintain valuable protections and save money. For example, if you have a health care policy that covers you abroad or a credit card that provides rental car coverage, you will not need a plan that includes these protections.
No matter what kind of travel insurance coverage you’re looking for, we recommend comparing premiums from at least three of our top travel insurance companies before deciding whether travel insurance is worth it.
Frequently Asked Questions About Cheap Travel Insurance
Our travel insurance comparison found that Nationwide offers some of the most affordable basic travel protection options for international travel insurance. However, we recommend getting a quote from each provider recommended above before you purchase travel insurance, as prices will vary based on the traveler, trip details, budget and destination.
There are multiple types of cheap travel insurance, including policies that include coverage for trip cancellation, trip delay and medical treatments issued abroad. Some travel insurance providers offer robust plans with various benefits, while others offer more affordable policies with limited benefits. The latter usually only allows you to cancel for a covered reason to receive a reimbursement for airfare, hotel costs and other nonrefundable expenses.
While travel restrictions have lifted immensely since 2021, COVID-19 concerns are still impacting travelers in 2023. According to a study from AAA, about 31% more Americans now choose to cover their trip costs with travel insurance compared to pre-pandemic.
Many of the companies we’ve reviewed in this guide offer some type of coverage for COVID-19, but it may be more limited in a basic plan. Now that COVID-19 has become less of a threat, many travel insurance policies treat it like any other illness under medical insurance. If you’re in a group at a higher risk of COVID-19 and believe a new strain might affect your travel plan, consider upgrading to CFAR insurance to extend your cancellation coverage to situations like fear of flying or illness.
You can expect to pay between 4% and 12% of your total trip cost for your international travel insurance, according to Generali Global Assistance. Actual costs will vary depending on trip details and the type of coverage you select.
The best travel insurance for your needs might vary depending on the specifics of your trip. For example, if you’re a student taking a budget trip to Mexico for spring break, Trawick’s low-cost basic plan might offer the most bang for your buck. If you’re planning a cruise, Nationwide’s cruise-specific coverage might provide peace of mind. We recommend getting at least three quotes from competing providers to be sure you’re getting the best coverage.
Methodology: Our System for Rating Travel Insurance Companies
Additional Travel Insurance Resources
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