Travel insurance is priced as a percentage of your total non-refundable trip cost -- typically 4 to 10% depending on your age, destination, and coverage type. Our calculator starts at a 5.5% base rate and adjusts for every factor you enter. Understanding what drives your estimate up or down helps you decide whether to buy, what tier to choose, and where you can safely save.
The value of travel insurance is straightforward -- it makes sense when the financial risk of a cancelled or disrupted trip is large relative to the premium cost. Ask:
The industry standard baseline for a standard travel insurance policy -- a traveler under 50 going to Europe on a 6 to 10 day trip -- is approximately 5 to 6% of total trip cost. Our calculator uses 5.5%. Every other input adjusts that rate up or down as a multiplier on this base.
Age is the single most powerful variable in travel insurance pricing -- the same pattern as life and health insurance. Here is how age multipliers shift your base rate:
| Age Bracket | Multiplier | Effect on 5.5% Base Rate |
|---|---|---|
| Under 30 | 0.80x | 4.4% of trip cost |
| 30-49 | 1.00x | 5.5% of trip cost |
| 50-64 | 1.25x | 6.9% of trip cost |
| 65-74 | 1.60x | 8.8% of trip cost |
| 75+ | 2.10x | 11.6% of trip cost |
For a $5,000 trip, the premium difference between a 30-year-old and a 75-year-old traveler is roughly $360. This gap reflects the higher probability and cost of medical events for older travelers abroad.
Where you are going significantly affects your rate. Domestic trips carry a 0.6x multiplier because US health insurance typically applies and evacuation costs are minimal. International destinations scale up based on medical infrastructure quality, political stability, and historical claims data:
Cancel For Any Reason coverage adds 40% to your base premium in our calculator. On a $5,000 trip with a $275 standard policy, CFAR brings the total to approximately $385. The key question: does the additional $110 buy you enough peace of mind given your specific situation? CFAR makes the most sense when your cancellation risk is high but does not fall into a standard covered reason -- work travel conflicts, personal uncertainty, or trips planned far in advance.
Travel policies vary more between insurers than most other types of coverage, so it's worth confirming these details before you assume two quotes are comparable:
Confirming these details before departure, rather than after an incident, is the only way to know whether your policy actually covers the trip you're taking.
Note: Many credit cards include limited trip delay and baggage protection as a cardholder benefit, but rarely include meaningful trip cancellation or emergency medical coverage. Review your card's actual benefit guide rather than assuming it replaces a standalone policy -- the two are usually complementary, not substitutes.
For multi-trip travelers, an annual policy covering all trips in a 12-month period is often cheaper than buying single-trip coverage each time, provided no single trip exceeds the policy's per-trip cost cap.
Basic coverage is cancellation-only. It does not cover medical emergencies, emergency evacuation, or baggage loss. A traveler to Southeast Asia who buys basic coverage to save $50 has no protection for the scenario that matters most -- a serious illness or injury requiring hospitalization or evacuation in a country where their US health plan does not apply.
Our calculator adds 25% for pre-existing conditions -- reflecting the actual underwriting surcharge most insurers apply. More importantly, failing to disclose pre-existing conditions on the actual policy application can void your claim entirely. The additional premium for disclosure is almost always smaller than the claim risk of non-disclosure.
If your flights are booked on flexible fares and your hotel is fully refundable, you are insuring financial risk that does not exist. The appropriate coverage amount is the non-refundable portion of your trip -- not the total cost. Insuring a $6,000 trip where $4,000 is refundable means paying premiums on $4,000 of phantom risk.
Note: Most travel insurance policies require purchase within 14 to 21 days of your initial trip deposit to qualify for pre-existing condition waivers and CFAR coverage. Do not wait until a week before departure -- you will lose the most valuable optional benefits.
Here is a realistic estimate for a family of three taking a $6,000 international trip, with and without a Cancel for Any Reason (CFAR) upgrade:
| Line Item | Base Policy | With CFAR |
|---|---|---|
| Trip cancellation limit | $6,000 (100% of trip cost) | $6,000 (100% of trip cost) |
| Emergency medical limit | $100,000 | $100,000 |
| Emergency evacuation limit | $250,000 | $250,000 |
| Reimbursement for any-reason cancellation | Not covered | 50-75% of non-refundable costs |
| Estimated premium | $240-$300 (4-5% of trip cost) | $340-$450 (adds 40-60% to base premium) |
The gap between these two columns is the entire CFAR decision in one table: you're paying roughly $100-$150 more to insure against reasons the base policy simply does not cover, like a work conflict or just changing your mind. That premium only makes sense if you're genuinely uncertain the trip will happen -- for a trip you're confident about, the base policy's covered-reasons list (illness, injury, death in the family, severe weather) already handles the scenarios most travelers actually worry about. CFAR also has a strict purchase window, typically 10-21 days from your first trip deposit, so the decision has to be made early. Use the Travel Insurance Calculator to price both options against your actual trip cost and destination.
Coverage depends on the tier you choose. Basic covers trip cancellation for specific covered reasons. Standard adds medical coverage and emergency evacuation. Comprehensive covers all of the above plus baggage loss, travel delay, and other ancillary benefits. The coverage type you select is the most important decision after destination.
CFAR is an optional rider that reimburses 50 to 75% of your prepaid trip costs if you cancel for any reason -- not just covered reasons like illness or death. It costs roughly 40% more than the base policy and must typically be purchased within 14 to 21 days of your initial trip deposit. Without CFAR, cancellations must fall into a covered category to be reimbursed.
Many premium credit cards include trip cancellation, trip delay, and baggage insurance as card benefits. However, the coverage limits are often lower than standalone policies, and medical/evacuation coverage is rarely included. Review your card's benefits guide and fill gaps with a standalone policy for international or high-value trips.
For most domestic trips, probably not. Your existing health insurance covers medical emergencies within the US, most major airlines offer some form of rebooking flexibility, and hotels typically have cancellation windows. Travel insurance makes the most sense for expensive non-refundable international trips.
Standard covered reasons include: unexpected illness or injury to you, your travel companion, or a close family member; death of a family member; severe weather making departure impossible; jury duty; job loss; and a few other named events. Changing your mind, work conflicts (unless involuntary job loss), and fear of travel are not covered reasons without CFAR.