Older Age = Higher Risk
The single biggest factor in travel insurance pricing is age.
- Under 60: Premiums are generally very low (often a few dollars a day).
- Over 65: Prices jump significantly as the statistical risk of a medical emergency increases.
- Over 75/80: Rates are highest, often requiring detailed medical questionnaires.
Destination Matters
Where you go affects what you pay.
- USA: Because US healthcare costs are astronomical, "Worldwide including USA" plans are the most expensive.
- Non-USA: Choosing a "Worldwide excluding USA" plan can save you 30-50%. If you are going to Europe, Mexico, or the Caribbean, make sure you pick this option!
Trip Length
Longer trips mean more exposure to risk.
- A 3-day shopping trip is cheap to insure.
- A 6-month Snowbird winter escape is a significant investment.
Pre-Existing Conditions
If you have heart conditions, diabetes, or lung issues, you are a higher risk to the insurer.
- Standard Rates: For those with no conditions or fully stable controls.
- Rated Policies: If you have severe conditions, you may be "rated," meaning you pay a surcharge to have those specific conditions covered.
Cancellation Costs
If you are buying Trip Cancellation insurance, the premium is directly tied to the cost of the trip you are insuring. Insuring a $20,000 luxury cruise will cost much more than insuring a $500 flight.