About the Travel Insurance Cost Calculator
This travel insurance cost calculator estimates what a comprehensive trip policy will cost and whether it is worth it for your trip. Comprehensive plans are usually priced as a percentage of the prepaid, non-refundable trip cost you insure, so enter that amount and the rate from a quote (or a test rate) to see the premium, the cost per traveler and the cost per day.
The second half of the calculator weighs the premium against what it protects: your estimated chance of having to cancel or cut the trip short for a covered reason, and the chance and size of a medical bill abroad that your own health insurance would not pay. That gives an expected value and the cancellation odds at which the policy breaks even.
Assumptions: the premium is a flat percentage of insured trip cost (real quotes also depend on age, destination and options such as cancel-for-any-reason), a covered cancellation reimburses the full non-refundable amount, and probabilities are your own estimates. Expected value ignores the peace of mind of avoiding a large, unexpected bill, which can matter more than the average.
With the default inputs, the estimated premium is $300.00. Change any value above to recalculate instantly.
How to use the travel insurance cost calculator
- 1Enter the prepaid, non-refundable cost of the trip you want to insure.
- 2Enter the premium rate from a quote, plus the number of travelers and trip length.
- 3Estimate your chance of cancelling and of needing emergency medical care abroad.
- 4Enter the medical bill your own insurance would leave you with.
- 5Compare the premium with the expected covered losses and the break-even odds.
Formula and method
Comprehensive travel insurance is typically priced as a percentage of the insured, non-refundable trip cost, so the premium is the trip cost multiplied by the quoted rate. Dividing by travelers and days shows the cost in more familiar terms.
The expected covered loss adds two parts: the probability of a covered cancellation times the money you would lose, and the probability of a medical emergency times the bill your own insurance would not pay. Subtracting the premium gives the expected value of buying. The break-even cancellation chance is the premium as a share of the trip cost — the odds above which cancellation cover alone pays for itself.
- Rate
- Premium as a percentage of trip cost
- p_c
- Probability of a covered cancellation or interruption
- p_m
- Probability of a medical emergency abroad
Worked examples
$5,000 trip for two at 6%
At 6% of $5,000 the premium is $300, or $150 per traveler and $30 a day. A 3% chance of losing $5,000 ($150) plus a 1% chance of a $20,000 medical bill ($200) gives $350 of expected losses, so the policy is worth about $50 more than it costs.
Domestic trip with good health cover
Insuring $2,000 at 5% costs $100. With no medical exposure, the only benefit is a 3% chance of losing $2,000, worth $60 — so the policy costs $40 more than its expected payout unless you think cancellation odds exceed 5%.
Expensive cruise for older travelers
At 9% the premium is $1,080. A 5% chance of losing $12,000 ($600) plus a 3% chance of a $50,000 uncovered medical bill ($1,500) gives $2,100 of expected losses, so cover is worth about $1,020 more than it costs.
Frequently asked questions
How much does travel insurance cost?+
Comprehensive policies are commonly priced as a percentage of the prepaid trip cost, so a more expensive trip costs more to insure. The rate rises with traveler age, trip length and added options such as cancel-for-any-reason cover. Medical-only plans are priced by day instead.
Is travel insurance worth it?+
It is most valuable when you have large non-refundable costs, travel abroad where your health plan does not cover you, or face a higher chance of cancelling. For cheap or refundable trips with good health cover, the premium often exceeds the expected payout.
Does my health insurance cover me abroad?+
Often not. Original Medicare generally does not pay for care outside the US, and many private plans cover only emergencies at out-of-network rates. Emergency medical evacuation can cost tens of thousands of dollars and is rarely covered.
What does trip cancellation cover?+
It reimburses prepaid, non-refundable costs if you cancel for a covered reason listed in the policy, such as illness, injury, a death in the family or severe weather. Changing your mind is not covered unless you buy cancel-for-any-reason cover, which usually refunds only part of the cost.
Should I insure the full trip cost?+
Only insure costs you would actually lose. Refundable bookings and credit-card travel protections reduce what you need to cover, which lowers a premium that is calculated on the insured amount.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.