Travel insurance is the most underestimated line in a trip budget and the one that can save you from a five- or six-figure bill. The reason comes down to one number: an overseas hospital stay or medical evacuation can cost tens of thousands of dollars. Insurance turns that risk into a small, fixed cost.
Why it's a fixed cost, not an extra
It's tempting to treat insurance as the optional line you cut when the budget's tight. That's the wrong way round. Medical care abroad isn't covered by your home system, and a serious illness or accident — or an evacuation home — can run to tens of thousands of dollars. Against that, a premium that's usually a small slice of the trip's total is one of the best-value things you'll buy. The point isn't the small claims; it's protection from the one catastrophic bill that could otherwise follow you home.
Insurance also covers the more mundane disruptions that actually happen often — a cancelled trip, a long delay, lost baggage. So the right question isn't "do I need it?" but "what cover do I need, and what should it cost?" — which is what the rest of this page is for.
What moves the price
- Destination — the USA and Canada cost the most to insure (healthcare prices); Asia and domestic are cheapest.
- Age — premiums step up, with big jumps after 65 and again after 70.
- Trip length & cover — longer trips and higher cover cost more; a higher excess lowers the premium.
- Add-ons — adventure sports, cruising and pre-existing conditions all add to it.
Estimate your premium
Set your destination, trip length, the oldest traveller's age and cover level for a ballpark range. Use it to sanity-check real quotes — if one comes back wildly higher or suspiciously lower, you'll know to look closer.
Estimate your premium → a ballpark to sanity-check quotes
Rough estimate only. Real premiums vary by insurer and your details — always get actual quotes (e.g. Cover-More, Allianz, 1Cover).
Save without cutting real protection
Lower the cost by raising the excess and trimming add-ons you don't need — not by slashing the medical limit, which is the part that actually protects you. Buy soon after booking so cancellation cover starts straight away, declare any pre-existing conditions honestly (a top reason claims get rejected is failing to), and if you travel a few times a year, price an annual multi-trip policy against single-trip cover — it often works out cheaper.
Go deeper
Questions
How much does travel insurance usually cost?
Often around 4–8% of your total trip cost, but it varies a lot by destination, age and cover. A short nearby trip for a young traveller is cheap; a long USA trip for an older traveller is far more. Estimate above, then get real quotes.
Why is cover for the USA so expensive?
US healthcare is among the priciest in the world, so insurers price in the higher cost of any claim there. Policies covering the USA and Canada sit in the top band.
Do I have to declare pre-existing conditions?
Almost always, yes — not declaring a known condition is a top reason claims are rejected. It may raise the premium, but it keeps your cover valid.
Estimates are general guidance only and vary by insurer, destination, age, trip length and cover. Always compare current quotes and read the policy wording before buying. This is not financial advice.