The Cost of Travel Insurance, and How to Keep It Affordable

Current average prices

Squaremouth’s 2026 data puts comprehensive travel insurance, which includes trip cancellation, at 4% to 10% of prepaid, non-refundable trip costs, or about 6% on average. Over the past 12 months its average comprehensive policy cost $456 for a 13-day trip, while medical-only plans averaged $87 for a 16-day trip, about $5 a day.

Price depends mainly on the travelers’ ages, trip length, medical and evacuation limits, the insured trip cost, single-trip versus annual coverage, and your state of residence.

Source: Squaremouth, October 2026. Averages reflect Squaremouth customers and won’t match every quote.

What drives the price

• Trip cost: the main factor for cancellation coverage, since the plan may reimburse the full amount.
• Age: older travelers generally pay more, especially for medical coverage.
• Trip length: longer trips cost more for medical coverage.
• Limits: higher medical and evacuation limits raise the price.
• Deductible: a higher deductible lowers the premium.
• Add-ons: Cancel for Any Reason, sports coverage, and rental car damage add cost.
• State of residence and destination can also affect price.

Ways to keep coverage affordable

1. Insure the real risk. If your trip is cheap or refundable, a medical-only plan may cover what matters most.
2. Don’t double-pay. Check what your health plan and credit card already cover.
3. Choose a sensible deductible. Pick one you could pay in an emergency.
4. Consider an annual plan if you take several trips a year.
5. Skip add-ons you won’t use, but don’t skip evacuation coverage for remote trips.

What credit cards already cover

Many credit cards include trip cancellation, delay, and baggage benefits, but most do not include medical coverage abroad. A 2024 Squaremouth review found that where cards do include medical benefits, the limits are often $2,500 to $5,000, and cancellation benefits usually apply only if you paid for the trip with that card. The most generous cards it reviewed capped cancellation at $10,000 per person and $20,000 per trip.

The cost of Cancel for Any Reason

Cancel for Any Reason coverage adds flexibility but costs more. The NAIC notes that it usually must be bought within a set period after booking, typically reimburses only part of your trip costs, and generally requires insuring all prepaid, non-refundable costs. It makes the most sense for expensive trips where your plans are uncertain for reasons a standard policy wouldn’t cover.

Weighing cost against risk

A medical-only plan averaging about $5 a day can protect against a hospital bill or evacuation that your U.S. coverage may not pay at all.

The U.S. Department of State says the U.S. government does not pay medical costs for citizens traveling abroad, and that Medicare and Medicaid do not pay for medical care outside the United States. It recommends asking your U.S. health insurer what it covers overseas, buying travel health insurance if it does not, and buying medical evacuation insurance for trips to higher-risk areas or places with limited medical care.

The department also notes that trip cancellation insurance usually does not pay for medical costs abroad, and that some travel medical policies pay hospitals directly instead of reimbursing you later.

If you are on Medicare

Original Medicare generally does not pay for care outside the United States. Medicare.gov lists three narrow exceptions for foreign hospital care: an emergency that happens in the U.S. when a foreign hospital is closer than the nearest U.S. hospital that can treat you; an emergency while driving the most direct route between Alaska and another state through Canada; and living in the U.S. when a foreign hospital is closer to your home than the nearest U.S. hospital that can treat your condition.

Medicare Part D drug plans do not cover prescriptions you buy outside the U.S. On a cruise ship, Part B may pay for medically necessary care only if the ship is in a U.S. port or no more than six hours from one when you get care.

Some Medigap plans add a foreign travel emergency benefit. Plans C, D, F, G, M, and N pay 80% of billed charges for medically necessary emergency care that begins in the first 60 days of a trip, after a $250 yearly deductible, up to a $50,000 lifetime limit. Plans C and F are available only to people eligible for Medicare before 2020. Some Medicare Advantage plans cover emergencies abroad, but not all do, so check your plan's evidence of coverage for the words “foreign” or “worldwide.”

When an annual plan saves money

If you travel abroad several times a year, an annual multi-trip medical plan can cost less than buying a plan for each trip. Check the per-trip day limit and whether you need a U.S. primary plan to qualify. Annual plans also save time, since you don’t have to buy a new policy before each trip. Here is one example.

Source: BCBS Global Solutions plan page, October 2026. Requires U.S. residency and a primary health plan with limits above $50,000.

Checking a plan and insurer

• Who issues the plan. Find the insurer’s legal name on the quote, not just the brand or website.
• License. Confirm the insurer and agent are licensed in your state through your state insurance department or the NAIC’s company and producer searches.
• Pre-approval rules. Ask whether you must call the assistance line before treatment or evacuation, since some plans reduce or deny benefits if you don’t.
• Direct billing. Ask whether the plan can pay hospitals directly or whether you pay first and file a claim.
• Exclusions. Read the exclusions for pre-existing conditions, hazardous activities, alcohol, and travel to countries under government warnings.

What an independent agency does

An independent insurance agency is licensed to sell policies from several insurance companies. Instead of quoting one company's products, an independent agent can compare options from the insurers the agency represents, explain the differences in coverage, and help you re-shop at renewal. The insurance company, not the agent, makes underwriting and claim decisions.

Blake Insurance Group is an independent agency. We work with clients by phone, email, and online in states where we are licensed, and we will tell you which insurers we can quote for your situation.

How we work

Blake Insurance Group serves clients by phone, email, and online in states where we are licensed. The insurers and plans we can offer depend on our appointments and your location; a company named on this page may not be available through us.

How to verify an insurer or agency

Before buying through any website or app, confirm who is selling you the policy and who will issue it:

1. Find the licensed agency or insurer named in the site's footer, terms, or license page.
2. Look up the agency or producer on your state insurance department's license search, or through the National Insurance Producer Registry (NIPR).
3. Look up the insurer on your state insurance department's company search to confirm it is authorized in your state.
4. Save the insurer's name and policy number once issued, since that is who handles claims.

A legitimate service will make this information easy to find. Be cautious if you cannot identify the licensed entity.

Sources

We checked the facts on this page against the sources below in October 2026. Plans, prices, and rules change, so confirm current terms before you buy.

• Squaremouth: How much does travel insurance cost in 2026?
• Squaremouth: Travel insurance vs. credit card coverage (2024)
• NAIC: Should I get travel insurance?
• U.S. Department of State: Insurance coverage overseas
• Medicare.gov: Travel outside the U.S.
• AARP: Does Medicare cover me outside the U.S.?
• BCBS Global Solutions: Multi-Trip plans

What to have ready for a travel insurance quote

These details help an agent quote accurately.

1. Traveler details. Names and dates of birth for everyone traveling.
2. Trip dates and destinations. Including countries you will pass through.
3. Current health coverage. Your U.S. plan name and limits, since some plans require one.
4. Trip cost. Only if you also want cancellation coverage.
5. Activities. Diving, skiing, climbing, or other sports you plan to do.

Cost of travel insurance FAQs

Related guides

• Travel medical insurance
• International health insurance
• Medical evacuation and repatriation
• Pre-existing conditions and travel insurance
• Travel insurance agency

Partner quote options

Your next step

Request a quote, and a licensed agent will compare options available to us for your trip or situation.