Why is travel insurance so expensive?
Critical risk factors such as the age of the traveller(s), number of travellers, trip duration, and the level of coverage affect the cost of travel insurance. Additional risk factors that can increase the price are the destination, whether you will be visiting a place deemed high-risk or remote, limits, deductible, and any options and add-ons you choose to add to a plan. On average, travel insurance will cost you 4%-10% of your total trip cost. To check and see what you will pay for travel insurance, visit us online for a quote and compare plans.
Is travel insurance more expensive now than it used to be?
Yes, we are faced with more expensive travel insurance post-pandemic. At the start of the COVID-19 pandemic, the cost of travel insurance went up due to the high demand for coverage and the increase in claims. Costs have remained high since. Inflation increases the cost of travel, which also increases the cost of travel insurance as the cost of living, overhead expenses, and Canadian healthcare costs continue to go up.
Does travel insurance get more expensive closer to the trip?
No, travel insurance does not get more expensive if you purchase it closer to trip departure. Risk factors and your total trip cost will affect what you pay for your travel insurance. On average, you can expect to pay anywhere from 4% to 10% of your total trip cost for your travel insurance. With that said, it’s recommended that you purchase travel insurance right away or within fifteen days of making your first trip deposit. Buying early allows you to take advantage of any bonus coverages you qualify for at no additional cost. However, with most plans, you can purchase coverage up until the day before trip departure.
At what age does travel insurance become expensive?
Your age affects your travel insurance premium. Travel insurance rates increase significantly as you enter the “senior” stage of life and continue to grow every few years because the older you get, the more you are at risk for pre-existing medical conditions. If you are a senior, it’s crucial that you plan for these increases in your travel budget. Also, know that before you are eligible to purchase travel medical insurance (commonly known as emergency medical insurance), you will need to complete a medical questionnaire, and your health will need to be in stable condition for a certain length of time before you travel.
Is travel insurance more expensive for a cruise?
Cruise vacations are costly due to their multi-legged nature and all the associated costs. Prices for cruising have risen to meet the high demand for post-pandemic vacations. Therefore, a cruise costs more to insure than less expensive land-based vacations. Risk factors and your total cruise cost will affect what you pay for cruise insurance. On average, you can expect to pay 4%-10% of your total cruise cost for cruise insurance. Your total cruise cost will be any expenses you pre-pay for that are non-refundable.
What is the least expensive travel insurance?
The least expensive travel insurance is a plan that meets your coverage needs. Before purchasing a plan, determine what coverage you need. You may already have travel insurance through a credit card (if you paid for your trip by card) or your employee benefits plan and only require top-up coverage. If you need help determining what coverage you already have versus what you need, our Customer Care team can assist you. Stay free of unnecessary coverage because you will pay more for travel insurance. Often, an all-inclusive travel insurance plan is all you need. All-inclusive travel insurance contains multiple coverages in a plan, such as trip cancellation and interruption, emergency medical and baggage loss, delay and more. It’s a cost-effective option for trips out of the province or abroad.
