Travel insurance price index: How much does travel insurance cost?

Buying travel insurance should be a vital part of your holiday checklist.

As soon as you’ve paid your premium, you’ll be covered if you need to cancel before your departure date. You’ll also be insured for unexpected costs like medical expenses overseas or replacing lost luggage while you’re away. Which means all you need to worry about is having a good time.

But what price do you need to pay for peace of mind?

The latest data from Go.Compare^[1] reveals that average premiums for travel insurance currently stand at:

• £15.93 for a single-trip policy
• £47.72 for annual multi-trip insurance
• £115.26 for backpackers’ insurance

The cost of your travel insurance will vary depending on where you’re going on holiday – choose between European and worldwide policies that include or exclude Canada, USA and the Caribbean.

If you’re travelling to Europe, the average cost for travel insurance is:

• £12.75 for a single-trip policy
• £36.35 for an annual multi-trip policy
• £48.56 for backpackers’ insurance

You can expect to pay more when travelling outside of Europe because of higher costs for medical treatment. On average it will cost you:

• £12.72 for single-trip cover
• £78.00 for an annual multi-trip policy
• £178.77 for backpackers’ insurance

Factors that impact the cost of travel insurance

There are several things that can affect the cost of travel insurance:

Your age

Insurers regard older people as more likely to fall ill on holiday, so there’s an increased risk of making a claim.

Our figures show that single-trip cover for people with no pre-existing medical conditions costs on average:

• £6.78 for 26-34 year olds
• £9.19 for 51-60 year olds
• £12.36 for 61-70 year olds
• £28.09 for 71-80 year olds
• £53.81 for 80+ year olds

Some providers impose an upper age limit on policies, but there are plenty that don’t. Some even specialise in providing travel insurance for seniors.

Prices usually rise more dramatically after you reach age 65 or 70.

If you have a pre-existing medical condition

You’ll be asked if you have any pre-existing conditions when you purchase travel insurance.

Pre-existing conditions include everything from asthma to heart problems, diabetes to cancer, as well as mental health conditions, like anxiety or depression.

You’ll usually be charged more if you have any as there’s a higher risk of claiming.

If you have a very serious medical condition, you may need to find a specialist policy. MoneyHelper has a directory of travel insurers that might be able to cover you.

How long you’re going away for

The longer your trip, the more expensive your travel insurance will be.

That’s because there’s a greater chance that you might claim on your policy - whether for illness, an accident, or lost possessions.

Destination

European destinations are considered lower risk, so a trip to Europe generally costs less to insure than to places further afield like Asia or Africa.

This is partly because you can use your General Health Insurance Card (GHIC) to receive reduced-cost emergency state healthcare in the European Union and Switzerland. Also, costs for repatriation will be lower and if you need to make a claim for cancellation, then a flight to Malta will usually cost a lot less to reimburse than one to Malaysia, for example.

Medical costs in the country or countries you’re visiting have a big influence on what you’re charged for your policy.

Healthcare in Canada, USA and the Caribbean is very expensive. Your insurer could be faced with a huge bill if you fall ill in any of these countries.

Add-ons

Not everything is included as standard on a travel insurance policy. You’ll need to pay extra for things like cruise cover, golf cover and winter sports cover for a skiing trip.

If you’re planning on taking part in a hazardous activity not included in your policy - things like kite surfing or hang gliding - you need to add adventure and extreme sports cover. And gadget cover can give you extra protection for theft of or damage to items like your tablet, mobile phone, laptop and digital camera.

How to get cheaper travel insurance

There are ways to bring the cost of your travel insurance down.

Compare quotes online

Compare quotes, cover levels and prices from multiple providers to see which can offer the right deal for your needs.

Buy an annual policy

If you’re planning on going away a few times a year, then an annual travel insurance policy can be cheaper than taking out single-trip insurance for each holiday you take.

Get a family travel policy

Family travel insurance can cover your whole family and is usually cheaper than taking out individual cover for each person. Policies normally cover one or two adults and up to five (or more, depending on the provider) children aged under 18.

Our data shows the average cost for family travel insurance is:

• £21.44 for a single-trip policy
• £53.79 for annual multi-trip cover

Only buy the cover you need

Don’t add optional extras unless necessary. For example, instead of adding gadget cover, check you’re not already covered on your home insurance. Before you buy adventure and extreme sports cover, check if the activities you intend on doing are already included as standard.

Avoid travelling with expensive gadgets and valuables

If you take expensive tech and jewellery on holiday that exceeds the maximum amount you can claim for a single item on your policy, you’ll need to pay extra to get them covered. Consider leaving high-value items like this at home instead.