The cost of COVID travel insurance can vary widely based on several factors. As the world continues to navigate the COVID – 19 pandemic, having appropriate travel insurance that covers COVID – related issues has become an important consideration for many travelers. Here’s a detailed look at what influences the cost and what you can expect to pay.
Factors Affecting the Cost of COVID Travel Insurance
Coverage Limits
Medical Expense Limits
If a policy offers a high maximum limit for medical expenses related to COVID – 19, such as $500,000 or $1 million, it will generally be more expensive than a policy with a lower limit, like $100,000. For example, Seven Corners’ Trip Protection Choice plan offers $500,000 in medical expense coverage per person, and this relatively high coverage limit contributes to its cost. In contrast, John Hancock Insurance Agency’s Silver plan has a medical expense limit of $100,000 per person and is priced more affordably among the plans analyzed for COVID coverage.
Evacuation Coverage
Medical evacuation can be extremely costly, especially if you need to be transported to a different country for specialized treatment. Plans with high evacuation coverage limits, such as $1 million, are going to be pricier. WorldTrips’ Atlas Journey Elevate plan provides a superior evacuation coverage of $1 million, which is reflected in its cost. Travel Insured’s Worldwide Trip Protector plan also offers high – end evacuation benefits ($1 million for medical evacuation and $150,000 for non – medical evacuation per person), contributing to its overall price.
Trip Cost
The cost of your trip is directly proportional to the cost of travel insurance in many cases. Since travel insurance often reimburses you for prepaid, non – refundable trip expenses in case of trip cancellation or interruption due to COVID – 19, a more expensive trip means higher potential losses. For instance, if you’re planning an elaborate, expensive vacation in Europe that costs $10,000, the insurance premium will be higher compared to insuring a $2,000 weekend getaway. Insurance providers calculate the premium based on a percentage of the trip cost, typically around 4% – 10% depending on other factors like coverage inclusions and the traveler’s age.
Trip Duration
Longer trips generally require more expensive insurance policies. A policy for a 30 – day trip will cost more than one for a 7 – day trip. This is because the longer you’re away, the higher the likelihood of encountering COVID – 19 or other covered events. For example, a short – term, basic COVID travel insurance policy for a 3 – day domestic trip might start at around $10 – $30, while a month – long international trip with comprehensive COVID coverage could cost upwards of $200 – $500 or more.
Traveler’s Age
Older travelers typically pay more for COVID travel insurance. Age is a risk factor for more severe COVID – 19 outcomes. For example, in some policies, travelers over 65 may pay significantly more compared to those in their 20s or 30s. In a study of various travel insurance providers, it was found that a 25 – year – old might pay around $50 for a basic COVID travel insurance policy for a one – week trip, while a 70 – year – old could pay upwards of $150 for the same coverage due to their higher risk profile.
Destination
Traveling to certain destinations can increase the cost of COVID travel insurance. High – risk areas, either due to a high prevalence of COVID – 19 variants or limited medical facilities, will prompt insurers to charge more. For example, if you’re traveling to a developing country with a less – developed healthcare system, the insurance cost may be higher as the potential cost of medical treatment and evacuation is greater. Conversely, traveling to a country with a well – established healthcare system and low COVID – 19 incidence may result in a lower insurance premium.
Type of Coverage
Comprehensive vs. Basic Coverage
Comprehensive COVID travel insurance policies that cover trip cancellation, trip interruption, medical expenses, evacuation, quarantine reimbursement, and more will be more expensive than basic policies that only cover a few of these aspects. For example, a basic policy might only cover medical expenses related to COVID – 19, while a comprehensive one will also reimburse you if you have to cancel your trip because you test positive before departure. Berkshire Hathaway Travel Protection offers several plans with comprehensive COVID – 19 coverage, including trip cancellation and medical benefits, and these plans are priced higher than their more basic counterparts.
Cancel – for – Any – Reason (CFAR) Coverage
Adding CFAR coverage to your policy can significantly increase the cost, usually by 40% – 60% of the base premium. This type of coverage allows you to cancel your trip for any reason and receive a partial refund (usually around 50% – 75% of the insured trip cost). For example, if the base cost of a travel insurance policy is $100, adding CFAR coverage could raise the price to $140 – $160. Travel Insured’s Worldwide Trip Protector plan offers a CFAR upgrade, which increases the plan costs by an average of 59%.
Average Cost Examples
Short – Term Domestic Trips
For a short – term (1 – 3 days) domestic trip, basic COVID travel insurance that mainly covers medical expenses in case of contracting COVID – 19 during the trip can cost as little as $5 – $15. For example, some insurers offer simple plans for domestic weekend getaways that provide limited medical coverage for COVID – 19 at this price range. If you want more comprehensive coverage, such as trip cancellation in case you test positive before the trip, the cost could be around $20 – $50.
Short – Term International Trips
A one – week international trip for a young, healthy traveler (aged 25 – 40) can have a basic COVID travel insurance cost of approximately $30 – $80. This would typically cover medical expenses and some level of trip interruption in case of COVID – 19. For example, for a trip to a popular European destination, an insurer might offer a policy with a medical expense limit of $100,000 and basic trip interruption benefits for this price. If you add more features like CFAR coverage or higher medical expense limits, the cost can increase to $100 – $200.
Long – Term International Trips
For a month – long international trip, the cost of COVID travel insurance can range from $150 – $500 or more. If you’re traveling to a high – risk area or need extensive coverage, such as high medical and evacuation limits along with comprehensive trip cancellation and interruption benefits, you could be looking at the higher end of this range. For instance, a traveler going on a month – long backpacking trip through Southeast Asia, where medical facilities may vary in quality, might opt for a policy with a $500,000 medical expense limit, $1 million evacuation limit, and CFAR coverage, resulting in a premium closer to $500.
Comparing Different Insurance Providers
Faye
Faye classifies COVID – 19 as a standard illness under its medical insurance policies. Its average trip cost, based on quotes obtained using multiple trip profiles, is $298. Faye offers add – on options such as cancel – for – any – reason coverage, adventure and extreme sports protections, rental car coverage, vacation rental damage protection, and pet care protection. The relatively high cost of Faye’s policy is due in part to its comprehensive coverage and the fact that it classifies its travel medical insurance as primary coverage, which means it kicks in before your domestic health coverage.
Travelex
Travelex offers comprehensive COVID – 19 interruption coverage. The average cost of its plans can vary, but it is often competitive in the market. For example, in some comparisons, its basic COVID – 19 travel insurance coverage was priced around $212. Travelex is known for its good customer service and a wide range of coverage options, which include trip cancellation, medical expenses, and evacuation in case of COVID – 19.
Seven Corners
Seven Corners’ plans, such as the Trip Protection Choice and Trip Protection Basic, are well – regarded for their COVID – 19 coverage. The Trip Protection Choice plan, which offers high medical expense ($500,000) and evacuation ($1 million) limits, has a relatively higher cost compared to some of its competitors’ basic plans. However, the Trip Protection Basic policy, with lower medical expenses ($100,000) and evacuation limits ($250,000), has the lowest average price among all COVID travel insurance plans assessed in some evaluations. It also offers benefits like travel delay coverage of $2,000 per person and a $20,000 non – medical evacuation benefit.
Tin Leg
Tin Leg’s Gold plan provides ample levels of medical ($500,000) and evacuation ($500,000) coverage. It has a relatively high average cost among top – scoring plans evaluated, which is mainly due to its high coverage limits. However, it offers good protection if you contract COVID or experience other medical issues during your trip. It also has decent trip interruption benefits and a short waiting period of 6 hours for travel delay benefits.
Allianz Global Assistance
Allianz Global Assistance offers an “epidemic coverage endorsement” in some of its policies. The cost of its plans can vary depending on the level of coverage. For example, some of its more comprehensive plans that include COVID – 19 coverage, trip cancellation, and medical benefits can cost around $265. Allianz is a well – known and trusted insurance provider, and its pricing reflects the reputation and the breadth of coverage it offers.
Special Considerations and Case Studies
Destination – Specific Requirements
Costa Rica: In 2020, Costa Rica required foreign tourists to purchase travel insurance for the possibility of contracting COVID – 19 before entry. The cost of this insurance depended on the traveler’s age. Those 80 years and older had to pay $965, 46 – 70 – year – olds paid $581, 18 – 45 – year – olds paid $299, and those under 18 paid $275. This insurance was to cover isolation accommodation (up to $4000) and medical treatment costs (at least $20,000). Such destination – specific requirements can significantly impact the cost of travel insurance for travelers visiting these areas.
High – Risk Travelers
Older Travelers or Those with Pre – existing Conditions: As mentioned earlier, older travelers are considered high – risk. For example, a 75 – year – old traveler planning a two – week trip to the United States might find that a basic COVID travel insurance policy that offers $250,000 in medical expense coverage and $500,000 in evacuation coverage could cost upwards of $300. If the traveler has pre – existing conditions like diabetes or heart disease, which can increase the severity of COVID – 19, the cost could be even higher, perhaps around $400 – $500, as insurers factor in the increased risk of medical complications.
Group Travel
When traveling in a group, the cost of COVID travel insurance can sometimes be more cost – effective on a per – person basis. For example, a group of 10 friends planning a one – week trip to Mexico. If they purchase a group travel insurance policy that includes COVID – 19 coverage, the per – person cost might be around $40 – $60, compared to if they each purchased individual policies, which could cost $50 – $80 per person. However, group policies may have specific terms and conditions regarding coverage in case an individual in the group contracts COVID – 19, such as how trip cancellation or interruption benefits are applied to the group as a whole.
conclusion
In conclusion, the cost of COVID travel insurance is highly variable. It’s essential for travelers to carefully assess their needs, including the destination, trip duration, cost of the trip, and their own health and risk profile, before choosing a policy. By comparing different insurance providers and their offerings, travelers can find a COVID travel insurance policy that provides adequate coverage at a reasonable cost.
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