Travel Insurance

Average Costs and Benefits of Travel Insurance 2017

At ValuePenguin, we are wholly focused on helping consumers maximize their personal finances. Namely, we want to provide enough information so that people can get the most for every dollar they spend. This involves being aware of how things cost on average, what value they provide and what alternatives are available. In order to find the best travel insurance, a very popular financial product, it would be important to know what you should expect to pay and what you should expect to get in return. Here, we breakdown the average cost of travel insurance by durations and destinations of your trip.

Average Cost of Travel Insurance in Singapore

Travel insurances in Singapore are priced based on the duration and destinations of your trip and the kind of benefits you receive. In general, most insurers breakdown the destination category into 3 regions: ASEAN, Asia and Global. ASEAN covers countries in South East Asia, while Asia covers all Asian countries including SE Asia. Some companies also only break it down to Asia and Global. The price of a travel insurance rises as the regional coverage widens. For instance, a 1-week long trip costs about S$40 on average to cover for ASEAN, while it costs about S$60 on average for global trips.

this chart compares the average cost of travel insurance for all insurers in Singapore. We compare different insurance policies by destination and the length of the trip.

The price of a travel insurance can also vary depending on the length of your trip. In general, insurance companies divide their products into short-term and annual coverage. To arrive at an average cost for each category, we collected pricing data for each insurance company by region and date. For instance, we gathered pricing data for 1-week and 2-week long trips to different regions to arrive at the above prices, and found that the price of a travel insurance can increase by about 50% to go from 1-week to 2-weeks. We also repeated the same process for annual plans.

Average Benefits of Travel Insurance

Now that we know how much a travel insurance costs on average, the next step would be to find out what a consumer can receive in return for purchasing these products. Typically, a travel insurance provides payment in case an event happens. Events are generally divided into two categories: 1) accident & medical and 2) travel inconveniences.

The first category can help you pay for medical bills if you happen to be in need of medical care. They can also provide payments in cases of depth or disability. The second category provides reimbursements if your flight is cancelled, delayed or if your baggage is lost, damaged or delayed. There are other scenarios that are also covered, like missed flight connections or cancelled hotel room nights. Below, we show average levels for each of the main categories.

Average Benefits
Personal Accident & DeathS$260,048
MedicalS$609,218
Accident & MedicalS$869,266
Emergency Medical Evacuation & RepatriationS$686,667
Trip InconvenienceS$18,006
Trip CancellationS$10,185
Trip DelaysS$1,463
Baggage Loss/DamageS$5,282
Baggage DelayS$1,076

Standard vs Premium Packages

Each travel insurance company will have at least two kinds of plans, if not three. These represent different tiers of travel insurance that provide different levels of benefits. For people who have extremely valuable goods in their baggage, or who have purchased expensive plane tickets, premium plans might be more appropriate so that they can be reimbursed commensurately to the value that they could potentially lose. On the other hand, others can find more value in “basic” or “economy” plans that are cheap and provide enough benefits to cover their costs. Typically, premium plans can cost 60% more than basic plans, but provide 200-300% more in coverage benefits

Average Price by RegionTrip DurationBasic PlanPremium Plan% Difference
ASEAN1-WeekS$28S$4975%
2-WeeksS$44S$7570%
AnnualS$195S$31461%
Asia1-WeekS$34S$5871%
2-WeeksS$52S$8869%
AnnualS$202S$31455%
Global1-WeekS$49S$7757%
2-WeeksS$75S$11756%
AnnualS$272S$43158%

Other Factors to Consider

While most travel insurances cover expenses for sports injuries, you should make sure to check which leisure activities are covered by your insurance company. This is because not every sports category might be covered by your travel insurance package. For example, bungee jumping might be covered while sky diving is not. This is especially the case for more “economy” or “standard” travel insurance packages, so just make sure your got your bases covered before committing to a specific plan. We this guide helps inform you well enough to know what to look for when shopping for the best travel insurance.

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