Have you ever questioned: why is travel insurance so expensive? It may add to the costs of a holiday but travelling with a good policy in place gives you the confidence to travel without worry – especially if you live with a medical condition and/or disability.
Although travel insurance has always been there to cover the cost of the unforeseen, such as travel disruption and unexpected medical emergencies, post-pandemic you may have noticed that travel insurance premiums have increased in price recently.
So, we want to give you a clear understanding of what affects the cost of a travel insurance policy. Plus, how you can get the most out of your policy from the moment you buy one. Below are five factors that affect the cost. Plus, seven ways to get more value from a travel insurance policy.
What is the average cost of a travel insurance policy?
The cost of your policy depends on various factors, including the specific coverage you need; for example, you’d need winter sports cover for a skiing trip.
Below we’ve given an idea of the costs of a single-trip policy for a solo traveller if they’re travelling to France or the USA. We did not include medical conditions when we did the quotes below:
- A trip to France for a healthy 20-year-old without any pre-existing medical conditions for 10 days is £24.62.
- For a healthy 80-year-old without any pre-existing medical conditions for 10 days, it would be £85.50
You may have ‘free’ insurance by looking at what your credit card or bank account/s may provide, however, it’s prudent to read the policy in detail. If you need more than a basic level of cover or ignore the policy’s exclusions, such as curtailment, it may leave you underinsured. This could mean that you have to foot the bill for your holiday even if you’re unable to leave home to enjoy it.
If this happens, you’ll be left out of pocket and frustrated but be even more cautious if you have pre-existing medical conditions as some policies will exclude cover for them. Be sure to check this because if you have a related medical issue while away and it is not covered you will be liable for all medical and associated bills. These can often be substantial – in the tens and even hundreds of thousands of pounds.
5 Factors that can affect the cost of your travel insurance policy:
1. Your health
Add any pre-existing medical conditions and/or disabilities to a policy and the price may increase. However, if you are tempted not to declare a medical condition and/or disability to reduce your premium, be aware of the risks. If a condition is not declared and it leads to a medical issue while abroad, a future claim could be rejected. This would result in a trip being even more expensive than you imagined. Medical costs abroad can exceed several thousands of pounds, which you may need to fund from your pocket if your insurer won’t pay out because of non-disclosure.
You may know that the number of specialist insurers who provide cover for people living with serious pre-existing medical conditions and disabilities is limited. However, Free Spirit Travel Insurance was the first to cater specifically to people of all age groups who live with medical conditions and disabilities and the rest of their travelling party. So, you can get cover for the whole family under one policy.
2. Your age
Unfortunately, reaching an age milestone makes a difference to the cost of travel insurance. When travellers reach 50 years old, they may start to see premiums increase and travellers aged 64+ pay higher premiums or could be excluded from purchasing a policy entirely. Higher premiums are demanded by insurers because there’s a greater risk of seniors claiming healthcare and medical expenses. To find a suitable quote for travel insurance shop around – there are specialist travel insurance providers who can offer competitive rates depending on your circumstances.
3. The destination
Many countries don’t provide the same level of healthcare as the NHS. So, the price you pay for a travel insurance policy will vary depending on the destination. Instead, there are reciprocal healthcare agreements between UK and EU and non-EU countries but healthcare is more expensive depending on that country’s approach.
One way to reduce the cost of travel insurance while still receiving healthcare is to visit a European holiday destination. However, if you choose Switzerland or an EU country, apply for a Global Health Insurance Card (GHIC) before leaving home. This makes you eligible for reciprocal healthcare and may mean that the insurer will reduce or waive the excess payable. Also, the cost to take you home (repatriation cover) will be lower.
The highest costs for medical treatment are in North America, (the USA and Canada). Although, Africa and Asia are not the cheapest continents to visit either.
To help you grasp the cost, in 2022, the cost of staying in a hospital, for one night in a European hospital (Belgium or France) was $157. Meanwhile, in Nigeria, it reached $372. As you can see, it’s easy for healthcare costs to quickly escalate when you need medical treatment abroad.