What plays the biggest factor when calculating the cost of travel insurance?

North American

As discovered while calculating the different insurance prices for travelling within North America, the cost can be found to be the same whether you are traveling within Canada, or to the United States, or even down to Mexico. 

For a 30 year old male looking for all-inclusive coverage, with no pre-existing medical conditions, and traveling alone from Ontario for 15 days, with a trip budget of $2000, the costs remained the same throughout the whole of North America. The only exception was a small sampling of insurance providers providing cheaper insurance for the trip within Canada. Costs ranged from $156.60 to $213.45 as calculated by five leading Canadian travel insurance providers.

International

By using the same demographics as above to calculate the cost of travel insurance for international trips, we set out to see if there was a difference between North American and international prices.

Insurer

Quote (excluding P.S.T.)

Escapade

$158.05

Blue Cross

$167.56

AIG Travel Guard

$180.36

Sun Life/RSA

$151.20

Medipac

$187.56

Using the same leading Canadian travel insurance providers, it is calculated that the cost of international travel insurance was not that much more than that of North American trips.

Demographics?

So, if a change in travel destination, even when comparing Canadian and European destinations, doesn’t have that large of an effect on the price of travel insurance, what does? We worked it out to see if changes in demographics hold any more weight while calculating costs. While the above signifies a fairly easy demographic to insure, the next set of costs have been calculated with demographics that fall on the opposite side of that spectrum. The location of origin has been kept the same (Ontario), as has the decision to opt for all-inclusive coverage.

Age – 56

Sex – Female

Duration of trip – 5 weeks

Cost of trip – $5000

Pre-existing medical condition/smoker – Yes

North American

Insurer

Quote (excluding P.S.T.)

Escapade

$367.33

Blue Cross

$418.64

AIG Travel Guard

$424.44

Sun Life/RSA

$378.00

Medipac

$571.85

International

Insurer

Quote (excluding P.S.T.)

Escapade

$367.33

Blue Cross

$550.40

AIG Travel Guard

$424.44

Sun Life/RSA

$378.00

Medipac

$571.85

While the price between locations in this new demographic again remains virtually the same, the difference in price due to age and other factors as compared to above is vastly different. By extending the trip and increasing it’s cost, as well as setting out to insure an individual in a higher age group, we can see that it is the demographics of who is applying for the travel insurance as opposed to where it is they are going.

Other than demographics and trip locations, there are other factors that can affect the cost of travel insurance. The costs above were calculated while looking for the best, all-inclusive coverage available, but depending on the trip you are taking you may not need coverage that comprehensive. There are varying levels of travel coverage you can opt for, depending on what would work best for your travel needs. 

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