How Much Does Travel Insurance Cost?

Let’s break down how travel insurance is priced. In general, your insurance will be about 5 to 7% of your total trip cost. When you consider it like that, it can be a small price to pay in order to protect your trip investment.

But what goes into calculating the cost of your travel insurance? A lot goes into pricing! Most Travel Guard® plans are multi-factor plans, meaning multiple factors go in to calculating the risk of a given trip, which in turn informs the premium price you could pay. Those key factors could be things like your age, trip cost, trip length, number of people on the policy, product type and optional add-ons. Let’s take a closer look at some of those factors below.

Product Type

We offer several different product options to choose from. Some plans, like our Trip Cancellation & Interruption Packages may only include coverage for trip cancellation, trip interruption, baggage and Flight & Travel Accident Insurance. Our All-Inclusive Packages include these benefits as well as additional coverage for emergency medical expenses. We also offer Emergency Medical Plans (single or annual trip options) if you only require emergency medical coverage.

The benefits, limits and covered risk differ for each plan. The Schedule of Benefits in the policy of insurance will outline the benefit limits of the plan you are considering. The covered risks can be found in each coverage section of the policy. If you’re unsure which plan is best for you, our call centre can assist you in determining what best meets your needs.

Optional Add-Ons

In addition to different products, Travel Guard has optional add-on coverages that you can purchase with certain plans. Add-ons like Cancel for Any Reason, Cruise and Tour Protector, Golf or Ski Protector will all increase the cost of your insurance – but they give you more coverage as well!

Number of People on a Policy

Multiple people included on a policy will mean a higher premium than a single-traveller policy. Some packages or plans may offer a family rate; however, most plans will charge a premium for each traveller. Each insured traveller is eligible for coverage under the policy. The benefit limits listed in the policy of insurance are per person (unless otherwise stated). Just like trip length, the more people there are, the greater the chance of something unexpected happening.

Trip Cost

Trip cost reflects the nonrefundable expenses that may be covered by your travel insurance. The more expensive the trip, the more there is to lose, and the more expensive it is for your insurance to cover any covered losses. So, a luxury, once-in-a-lifetime trip that features multiple flights, an expensive hotel and excursions will likely cost more to insure than a simple weekend getaway.


Statistically speaking, travellers are at greater risk as they get older. Often times those travellers may be at a higher risk of developing a medical condition and need to cancel their trip or be more likely to see a doctor while on their trip. Because of this, premium will increase as the age increases.

Trip Length

Everything comes back to risk with insurance, and the longer you are on your trip, the risk increases that something may happen where you’ll need your insurance (like a medical issue or lost belongings, for example). That’s why a 30-day trip is going to be more expensive to insure than a seven-day trip.

As you can see, a lot goes in to pricing your travel insurance plan for your upcoming trip. While it’s important to have your trip details accurate when purchasing your insurance, you can use estimates to get a quote either online or from our call centre. That way you have an idea of what to expect and can calculate the cost of insurance into your overall travel plans.

When you consider what travel insurance can do for you in the event that something happens before or during your trip – it’s a smart idea to protect your trip investment.

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American International Group, Inc. (AIG) operates in more than 80 countries and jurisdictions around the world to serve you better.

Please note that travel insurance products are currently not available to residents of the Province of Quebec. SVP prendre note que nos produits d’assurances voyages ne sont pas présentement offerts aux résidents de la province du Québec. *Coverage as low as $20 is an example based on a 29 year old traveller purchasing the Gold Emergency Medical Single Trip Plan for a 6 day trip with no deductible; actual cost of insurance is $19.98. Prices vary based on individual needs.

Insurance underwritten by AIG Insurance Company of Canada (AIG Canada), with its principal place of business at 120 Bremner Boulevard, Suite 2200, Toronto, ON M5J 0A8. All policies are administered on AIG Canada’s behalf by Travel Guard Group Canada, Inc. (Travel Guard). The coverage described herein is a summary only. It does not include all terms, conditions, limitations, exclusions and termination provisions of the Travel Guard products available. Please review full policy language for complete coverage details.