If you’ve ever planned a trip and considered travel insurance, chances are you’ve asked the same question: how much does it really cost? It’s a fair concern. After booking flights, accommodation, and other expenses, adding insurance can feel like just another line item. But it’s often more affordable than people assume.

Understanding what affects the cost of travel insurance helps you make smart choices. You don’t want to overpay, but you also don’t want to cut corners and end up underinsured.

What’s the Average Cost of Travel Insurance?

Most travel insurance plans cost between 4% and 10% of your total trip cost. So, if your trip costs AED 10,000, insurance might range from AED 400 to AED 1,000. That’s a small price to pay for peace of mind, especially if you’re travelling abroad or booking non-refundable flights and hotels.

That range depends on many factors, which we’ll explore next. Some plans may cost less if you want basic coverage, while comprehensive plans with extras will cost more.

What Affects the Cost of Travel Insurance?

Several key factors influence how much you’ll pay for a travel insurance policy:

1. Trip Cost

The higher the total cost of your trip, the higher your insurance premium will be. That’s because the insurer would have to reimburse more in case of cancellation or interruption.

2. Destination

Travelling to a country with high medical costs, such as the United States, usually means higher insurance prices. Destinations with low risk and affordable healthcare may cost less to insure.

3. Trip Duration

Longer trips typically cost more to insure. The longer you're away, the more chances something could go wrong.

4. Age of Traveller

Older travellers tend to pay more for travel insurance. That’s due to a higher likelihood of health-related claims. A 65-year-old will generally pay more than a 30-year-old for the same policy.

5. Coverage Type

Basic plans cover trip cancellation, emergency medical, and lost luggage. If you add extras like “Cancel for Any Reason” or cover for extreme sports, the cost increases.

6. Pre-existing Medical Conditions

If you have health conditions and need them covered, your premium might go up. Some insurers require a medical screening or offer specific policies to include pre-existing conditions.

Types of Coverage and Their Costs

It helps to understand what you’re paying for. Here’s a quick breakdown of common coverage types and how they impact cost:

• Trip Cancellation and Interruption: This is one of the main cost drivers, especially for expensive trips.
• Medical Emergency: Coverage for treatment, hospitalisation, and medical evacuation. Countries with high medical fees can raise your premium.
• Baggage and Personal Belongings: Usually a small part of the policy, but helpful for lost or delayed luggage.
• Travel Delay: Covers food, transport, and accommodation during long delays.
• 24/7 Assistance Services: Most insurers include this, and it adds value without a significant increase in price.

How to Lower Your Travel Insurance Costs

Travel insurance doesn’t have to break the bank. Here are some tips to manage your premium while still getting valuable coverage:

1. Don’t Overinsure

Only insure the non-refundable parts of your trip. If your hotel offers free cancellation, you don’t need to include it in your insured amount.

2. Choose the Right Deductible

Policies with a higher deductible usually have lower premiums. Just make sure you can afford the deductible if you need to make a claim.

3. Skip Unnecessary Add-Ons

Not everyone needs adventure sports coverage or “Cancel for Any Reason” benefits. Only add extras that apply to your trip.

4. Buy Insurance Early

Buying insurance right after booking your trip can qualify you for extra benefits, such as coverage for pre-existing conditions or cancel-anytime options. Waiting too long may limit your coverage options.

5. Compare Plans Carefully

Don’t just look at price, check what’s included. A cheaper plan might lack key benefits or have low coverage limits. Yas Takaful makes this comparison easier by offering clear, tailored plans for UAE travellers.

Is Travel Insurance Worth the Cost?

Think of travel insurance as a backup plan. You may never need it, but when things go wrong, it can save you thousands. Missed flights, medical emergencies, or last-minute cancellations can turn a holiday into a financial headache.

For a small percentage of your overall travel spend, you get protection against a wide range of risks. In that sense, it’s one of the smartest investments you can make before leaving home.

Why Choose Yas Takaful for Travel Insurance?

If you’re based in the UAE, choosing a local provider with global reach makes sense. Yas Takaful offers Travel Insurance in Abu Dhabi with:

• Affordable premiums for short or long trips
• Multiple coverage options to match your budget
• Transparent terms with no hidden fees
• Fast claims process and 24/7 customer support

Whether you’re going on a short weekend getaway or a month-long international trip, Yas Takaful has a plan that fits.

Final Thoughts

Travel insurance doesn’t cost as much as people often think. With prices typically between 4% and 10% of your trip’s total cost, it’s a small expense compared to the financial risks of travelling without coverage.

The cost depends on your destination, trip length, age, and the coverage you choose. Being smart about what you need, and what you don’t, can help you stay protected without overpaying.