Half of travel insurance claims in 2025 relate to medical expenses, but here’s what booking sites won’t tell you: that quick “add insurance” button during checkout often costs twice what you’d pay shopping around. According to Battleface data, medical insurance attachment rates jumped from 73.5% to 80.8% this year, proving smart travelers understand the stakes. The question isn’t whether you need protection—it’s whether you’re getting value for your money.

The average travel insurance premium now sits at $293.72 for trips averaging $7,139, yet many travelers overpay by blindly accepting package add-ons. Here’s how to avoid the tourist trap of convenience pricing while securing real protection for your travel investment.

The Smart Shopper’s Guide to Real Costs

Comprehensive travel insurance typically costs 4%-8% of your trip cost through reputable providers. For a $5,000 vacation, expect $200-$400 for solid coverage when you comparison shop. However, insurance offered through booking platforms can cost 30-50% more than purchasing directly from providers like Squaremouth’s comparison tool or TravelInsurance.com’s marketplace.

Age dramatically affects pricing. Millennials average $178.92 per policy, while seniors can pay significantly more due to increased health risks. Those aged 85+ pay an average of $108.65 compared to $23.51 for travelers aged 18-49, according to recent MoneySuperMarket data.

The type of coverage matters enormously. Medical-only plans average $90.57 from Squaremouth users over the past year, while comprehensive plans averaged $414.14. Don’t pay for comprehensive coverage if you only need medical protection.

Senior Savings Most Don’t Know About

AARP members receive 20% off travel insurance policies through AARDY’s travel insurance marketplace, allowing comparison of discounted rates from multiple providers. Members also get 20% off Medjet packages, which provide hospital-of-choice medical transfers when you’re 150+ miles from home. That’s serious value for travelers over 50 who want premium medical evacuation coverage.

The AARP Travel Center powered by Expedia offers additional insurance discounts when bundled with travel bookings. For just $15 annual membership, these savings often pay for themselves on a single trip.

Family Coverage That Actually Makes Sense

Many top providers include children at no extra cost. Travelex’s Ultimate plan covers one child aged 17 or younger per insured adult at no additional charge. Travel Insured International’s FlexiPAX plan covers up to nine children per insured adult—a massive savings for larger families.

Family policies typically cost less than individual coverage for each member. Compare the Market data shows family coverage starting from £1.57 in some cases, making it dramatically cheaper than separate policies. The Compare the Market family travel insurance guide explains how family policies can cover stepchildren, foster children, and even grandparents on multigenerational trips.

What Locals Know About Package Insurance

Smart travelers understand that booking-platform insurance serves the platform’s profit margins, not your best interests. These add-ons often exclude key benefits like Cancel For Any Reason coverage, which more than doubled to 11.57% of sales by February 2025 as travelers demand broader protection.

Annual coverage makes sense for frequent travelers. If you’re taking three or more trips yearly, annual policies from providers like Nationwide’s multitrip plans cost less than buying separate policies. Squaremouth data confirms annual coverage is cheaper than multiple single-trip medical policies.

Protection You Actually Need vs. Marketing Fluff

Medical expenses and trip cancellations represent 70% of claims. For international travel, 78% of travelers purchased medical coverage in 2023, compared to only 45% for domestic trips. The average emergency medical claim reached £1,724 in 2023, though extreme cases can hit tens of thousands.

Emergency medical coverage becomes crucial abroad where your domestic health insurance won’t help. One provider covered £25,000 in repatriation costs for a customer injured in a forest fire. Without coverage, these costs come directly from your savings.

Trip cancellation protection safeguards your investment when life intervenes. Weather-linked delay claims climbed 15% in 2024, with average payouts rising to $370. Smart travelers buy within 24 hours of booking to maximize cancellation benefits and preexisting condition waivers.

Avoiding the Expensive Add-On Trap

Today’s travelers are shifting toward selective, targeted coverage rather than comprehensive packages. The data shows a substantial increase in customers choosing 1-2 benefit bundles, jumping from 27.2% to 35.8% of purchases. This trend indicates travelers are researching specific risks rather than accepting default packages.

Use comparison sites like Squaremouth or InsurMyTrip to see rates from multiple providers. These platforms often reveal 30-40% savings over booking-platform add-ons. Read policy details carefully—the cheapest option isn’t always the best value, but neither is the most expensive.

Consider your existing coverage first. Many credit cards offer basic trip protection, and your health insurance might cover some international medical expenses. Don’t duplicate coverage you already have—focus on filling gaps rather than buying redundant protection.

The travel insurance landscape has shifted dramatically, with 76% of travelers now purchasing coverage compared to 24% in 2024. This isn’t fear-mongering—it’s protecting increasingly expensive travel investments. Whether package insurance represents essential protection or an expensive add-on depends entirely on where you buy it and what you actually need.