Travel Insurance Cost Calculator
Estimate your travel insurance premium based on trip cost, traveler age, destination risk, and coverage level. Use it when comparing policies or budgeting for a trip where medical or cancellation coverage is essential.
About this calculator
Travel insurance premiums are driven by four key risk factors that this calculator multiplies together. The formula is: Premium = tripCost × coverageLevel × destination × (1 + (travelerAge − 25) × 0.01) × (1 + tripDuration × 0.005). The base is your total trip cost, since insurers need to cover potential cancellation or interruption losses. The coverage level and destination risk are scaling multipliers — comprehensive plans and high-risk destinations raise the premium. The age adjustment adds 1% per year above age 25, reflecting higher medical claim likelihood for older travellers. The duration adjustment adds 0.5% per day, capturing the increased exposure time. Together these factors mirror the actuarial approach real insurers use to price policies.
How to use
Example: $3,000 trip cost, age 45, 10-day trip, standard coverage (level 0.05), medium-risk destination (factor 1.0). Step 1 — age adjustment: 1 + (45−25) × 0.01 = 1 + 0.20 = 1.20. Step 2 — duration adjustment: 1 + 10 × 0.005 = 1 + 0.05 = 1.05. Step 3 — multiply all: 3,000 × 0.05 × 1.0 × 1.20 × 1.05 = 3,000 × 0.0630 = $189. The estimated insurance premium is $189.
Frequently asked questions
How much does travel insurance typically cost as a percentage of trip cost?
Most travel insurance policies cost between 4% and 10% of your total prepaid, non-refundable trip cost, though this varies widely by age, destination, and coverage tier. Basic cancellation-only plans sit at the lower end, while comprehensive plans including 'cancel for any reason' coverage can exceed 10%. This calculator helps you estimate where your specific combination of variables falls within that range before you shop for actual quotes.
Why does traveler age affect travel insurance premiums so significantly?
Older travellers present statistically higher medical risk, which is the largest single cost driver for insurers on international policies. Emergency medical evacuation alone can cost $50,000–$200,000, and the likelihood of hospitalization increases substantially with age. Most insurers apply age bands that raise premiums sharply after 60 or 70, and some policies require medical underwriting for travellers over 75. Insuring the oldest traveller in a group is therefore the most critical factor to price accurately.
When is travel insurance worth buying for a domestic or short trip?
Travel insurance is most valuable when you have significant non-refundable upfront costs — flights, hotel deposits, tour bookings — that you'd lose if forced to cancel. For domestic trips where your regular health insurance covers medical care, a simple trip cancellation plan is often sufficient and inexpensive. However, if you're booking a cruise, a ski holiday, or a resort package months in advance, the cancellation protection alone can justify the cost even for short domestic trips.