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What Factors Affect the Cost of Travel Insurance?

Travel Insurance Cost Factors
Allianz - Travel Insurance Cost Factors

Getting car insurance quotes means answering an endless list of questions. Where do you live? Are you single? What car do you drive? When was your last speeding ticket? Shopping for life insurance is even more of a hassle: You have to answer intrusive questions about your health, and maybe even get a medical exam.

Travel insurance is completely different. Your prior health history doesn’t matter; nor does your destination. So what factors do influence the cost of travel insurance?

How we determine travel insurance cost

When you request a customized quote for travel insurance from Allianz Global Assistance, you’ll notice that we don’t ask for much information. We calculate your costs for various plans based on just two factors:

1. Trip cost: If your plan includes trip cancellation or trip interruption benefits, the cost of travel insurance will be partially determined by your total trip costs. It makes sense: If you file a claim for a covered trip cancellation, it costs a lot more to reimburse you for a $25,000 luxury safari than for a $5,000 beach house rental.

When you’re getting a quote, make sure you enter trip costs accurately. Your total trip cost isn’t just airfare and hotels, but any travel expenses you incur prior to your departure date. These could include tour costs, event tickets, theme park passes, cruise ship excursions, etc.

2. Age: Travel insurance costs, like any other kind of insurance, are based on risk. Because older travelers are more at risk for health problems, the cost of travel insurance rises with age. This doesn’t mean, however, that travel insurance is out of reach for older travelers. Get a quote and compare plans to find one that fits your budget.

When you’re getting a quote, you’ll notice that we ask for your state of residence too. That’s because many states have individual rules about how travel insurance works and what it can cover.

Factors that don’t affect travel insurance cost

Your destination: People often want to know, “How much is travel insurance for Europe?” or “How much is travel insurance for China?” The truth is, it doesn’t matter if you’re heading to Lisbon or Lima, Sydney or Samarkand. Your cost remains the same, regardless of your destination.

However, if you’re heading to a remote or high-risk destination, you should consider purchasing a travel insurance plan with higher limits for emergency medical benefits and emergency medical transportation benefits. The cost of an emergency medical evacuation — transporting you by helicopter to the nearest appropriate medical facility — can easily exceed $100,000 in parts of South America, Russia, Asia, Australia and the Middle East. (Learn more about the cost of emergency medical transportation.)

Trip length: Another question we often hear is, “How much does travel insurance cost for 1 month?” What about a trip of two weeks, two months or longer? Again, it doesn’t matter. Trip length generally doesn’t affect the cost of travel insurance.

The one exception is the OneTrip Emergency Medical Plan, a low-cost plan designed for longer journeys of up to 180 days. Because the OneTrip Emergency Medical Plan does not include trip cancellation/interruption, trip cost doesn’t affect the cost of this travel insurance plan. Trip length does, however. Learn more about the OneTrip Emergency Medical Plan.

Your claims history: Unlike car insurance premiums, which often skyrocket after a claim, travel insurance costs are not affected by your claims history. For example, if you filed a claim with us last year because you had to cancel your Caribbean cruise for a covered reason, that would not affect the cost of travel insurance for any trips you take this year.

Your medical history: When you buy travel insurance, we won’t ask you any questions about your health. Medical history and/or chronic medical conditions are not a factor in determining the cost of travel insurance.

If you have a pre-existing medical condition, however, you should be aware of how travel insurance may or may not cover it. We define an existing medical condition as an illness or injury that you (or a family member or traveling companion) were seeking or receiving treatment for or had symptoms of on the day you purchased your plan, or at any time in the 120 days before you purchased it.

Look for a travel insurance plan with the pre-existing condition benefit, which means you’re eligible for benefits and assistance services if:

  • You or the affected party purchase your plan within 14 days of making your trip deposit or first payment
  • You purchase trip cancellation benefits that cover the full trip cost
  • You were a U.S. resident and medically able to travel the day you bought the plan.

Sound complicated? We can walk you through it. Call Allianz Global Assistance anytime at 1-866-884-3556. Learn more about how travel insurance covers existing medical conditions.

How to reduce your travel insurance cost

To save money on travel insurance, look for a plan that includes all the benefits you need — and leaves out the benefits you don’t. We offer a wide range of travel insurance plans for every type of trip and every budget.

If you’re traveling within the U.S. and you mainly need trip cancellation/interruption and travel delay benefits, consider the low-priced OneTrip Cancellation Plus Plan.

If you’re planning multiple trips in a year, whether domestic or international, you can save a lot on travel insurance by opting for a multi-trip plan that can cover you for 365 days. Most plans include rental car damage protection, too, which saves you even more.

And if you’re a budget traveler with few pre-paid expenses who still needs the protection of emergency medical and emergency medical transportation benefits, the OneTrip Emergency Medical Plan might be a good fit.

The best way to find out how much travel insurance costs is to get a free, personalized quote and compare different plans. Start here!

VIDEO: How to Get a Quote

Feb 08, 2019