As travel ramps back up, Americans are more interested in protecting their travel plans, spurring high demand for travel insurance. In AdvisorSmith’s study of more than 50 travel insurance policies, the company found the average cost of travel insurance in the US to be $95 for a one-week international trip. Prices did vary widely, however, depending on the insurer, and the analysis showed premiums ranging from a low of $39 to a high of $210.
AdvisorSmith used quote estimates from 53 different travel insurance policies in order to determine average costs for travel insurance. Quote estimates also made use of various sample traveller profiles. For the main sample traveller profile, the company used a 30-year-old male traveller in good health, planning to travel by direct flight to the UK from California on a one-week vacation.
Most policies don’t cover trip cancellation
The study also showed that most travel policies won’t provide coverage for trip cancellation due to fear of travel or if the trip is cancelled due to a government body, health authority, or travel supplier restricting or cancelling travel due to Covid-19. However, if the traveller falls ill due to Covid-19 prior to their departure, many insurers will cover trip cancellation. Additionally, if the policyholder contracts Covid-19 on the trip, most insurers treat this as any other illness, offering medical and emergency coverage.
ITIJ recently assessed the many factors affecting the rise in health insurance premiums, including increasing treatment costs, higher incidence of chronic conditions, evolving and expanding regulatory requirements, and the accelerated use of insurtech.