Personal Finance Essentials
Factors Affecting the Policy Cost
Travel Cancellation and Medical Evacuation Insurance > Factors Affecting the Policy Cost
Travel insurance typically costs between 4% and 8% of your total trip cost.
Trip duration – longer trips carry more exposure and therefore higher premiums
Destination – travel to regions with limited medical infrastructure, high crime rates or political instability costs more to insure
Traveler’s age – older travelers typically pay more, since medical risks increase with age
Amount of coverage – higher limits for medical evacuation, trip cancellation and other benefits increase the premium
Pre-existing medical conditions – many standard policies exclude pre-existing conditions unless you purchase a waiver, which adds to the cost
Timing matters as well. The best time to buy travel insurance is when you book your trip, not shortly before departure. Buying early locks in trip cancellation coverage from that date forward and gives you access to time-sensitive benefits like the pre-existing condition waiver and the cancel-for-any-reason upgrade, both of which typically require purchase within 14 to 21 days of your initial trip deposit.
Once you have a policy, carry the documentation with you during your travels. If an emergency arises, you’ll need your policy number and the insurer’s 24-hour emergency contact number immediately – not hours later when you can find your email.