How much does travel insurance cost?

• • Where you're going: Each country or region has different levels of risk determined by insurance companies.
  • How long you're going for: The longer you are away, the longer the policy and the higher the premium.
  • How old you are: Like most types of insurance, the premiums you pay usually increase with age. If you're an older traveller, search for brands that specialise in senior travel insurance.
  • Pre-existing medical conditions: Some insurers won't cover your pre-existing medical condition, while others will increase the premiums to compensate for the risk. Compare travel insurance for pre-existing medical conditions here.
  • Level of cover: Each insurer will offer different levels of cover that may impact your policy. Most will offer Comprehensive, Essentials and Basic levels of cover with different features. The more comprehensive the cover, the higher the limits, and the higher your premiums.
  • Activities: Some insurers will let you pay an additional premium to include cover for high-risk activities, such as scuba diving or rock climbing.
  • Any additional cover: Most insurers will let you purchase additional cover for:

  • Cruise trips (if not covered automatically)
  • Expensive items where the value exceeds that automatically provided.

What can increase the price of travel insurance?

Adding optional extras to your policy also affects the cost of your premium. Examples of optional extras include:

• Cover for adventurous activities such as hang gliding, scuba diving, skiing and hot air ballooning.
• Rental car insurance excess to pay the large excess charged by rental car companies in the event of a claim.
• High value items cover for things like expensive laptops or cameras that you take with you.

How do I get travel insurance at the best price?

When it comes to finding the best travel insurance at the right price, it's important to do the following:

• Shop around. Get a number of quotes from different insurance providers and make sure you compare policies thoroughly.
• Be wary of travel agents and airlines, who can charge hefty commissions and consider buying your travel insurance direct from the insurer.
• Policy choice. If you travel more than once a year, take out an annual multi-trip policy, rather than purchasing a single-trip policy every time.
• Destination. If the destination is not important to you, consider taking your holiday somewhere that needs less insurance cover (i.e. Bali rather than the USA).
• Joint policy. If travelling with others such as your family, take out a joint policy or a group travel insurance plan rather than individual coverage.
• Excess. If you can afford it, increase your excess (the amount you must contribute when making a claim), which reduce your premium.
• Other insurance. Use other insurances you may have, such as credit card travel insurance, or home and contents insurance, to supplement your cover.

What level of cover do I need?

Deciding on the level of cover you need is a personal choice. It depends on things like how much you want to spend on premiums, how much risk you're willing to take on and how valuable the items you're taking with you are.

Here are a few things to consider when you're choosing between basic, standard and comprehensive cover:

• Medical. It's important to consider your own health and the healthcare system in the country you're travelling to. If you're heading to the USA for instance, where healthcare is expensive, it's wise to take out travel insurance that has unlimited medical and hospital cover.
• Personal belongings. If you're taking expensive items with you on your trip such as cameras, electronics or jewellery, it's worth having insurance with per-item limits that are high enough to cover replacement of those items if lost or stolen.
• Trip cancellation. If you have pre-booked and paid for your entire holiday before you leave home, you should make sure you have sufficient cover to ensure that you're fully reimbursed, should your holiday be called off for any reason.

Specialist types of travel insurance

One of best ways to find the right travel insurance for your trip, at the best price, is to consider specialist travel insurance, which will only cover you for the things you need:

• Backpackers insurance. Unlike normal travel insurance, which usually covers a traveller for up to 31 days, backpackers or 'gap year' insurance, as it is sometimes known, provides extended cover for up to 18 months and can include a number of different countries and activities.
• Family insurance. Family insurance is designed for parents travelling with kids and offers group discounts and even free cover for younger children.
• Winter sports insurance. Tailor-made for those holidaying in the snow, you can get specialised ski travel insurance as well as snowboarding cover. It usually covers ski accidents and medical evacuations, along with expensive equipment against loss or damage and cancellation of prepaid ski passes.
• Over 65s insurance. While still more expensive than normal travel insurance seniors travel cover often covers a wider range of pre-existing medical conditions and offers generous limits for medical claims.
• Business insurance. Unlike standard policies, business travel insurance covers travellers who work while they are overseas and usually includes more generous cover for phones, laptops and other business-related equipment. Learn more about business travel insurance.