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Your travel insurance premium explained

Find out how we work out the cost of travel insurance

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How your details affect your price

Where you're travelling to

Your holiday destination is a big part of how much you pay for your travel insurance. This is mostly down to how expensive medical treatment is in your destination country. On average, medical expenses in the US are 75% higher than in Europe. What's more, say you had a serious accident and needed to be flown home, the further away you are, the more it would cost.

So, if you're going further afield for your holiday, expect to pay more for your cover than if you're caravanning in Cardiff.

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How long you're going for

It makes sense that the longer you're away travelling for, the more likely it is that you'll have an accident, need medical treatment for an illness, or lose some personal belongings.

Booking a six month backpacking trip around the Far East? Prepare to pay more for your travel insurance.


Who you're travelling with

The people you go on holiday with have a bearing on the cost of your travel insurance. Insurers will consider the age and medical history of everyone in your group. Adding grandparents to a group travel insurance policy could put the price up, even if they're in good health.

Sometimes it pays to travel in a bigger group though; with LV=, you'll get a discount and increased benefits for group travel insurance.

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Medical conditions

If you've got a clean bill of health, you're likely to pay less for your insurance than someone with a medical condition.

Some travel insurance companies, including LV=, offer cover for people with pre-existing medical conditions, depending on the severity of the problem – but the cost of cover might be higher.


What activities you'll do on holiday

While most travel insurers tend not to cover you for extreme sports, most will include some cover for the most popular kinds of leisure activities, such as snorkelling, cycling – even bungee jumping!

It normally costs a bit more to cover certain activities - if you're going skiing for example - because there's a greater risk of you having an accident or injuring yourself.

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How outside influences affect your price

Currency fluctuations

Unfortunately, there’s not a lot you can do about the global markets; when the pound is weak against foreign currencies, it costs insurers more to settle claims with companies or services based overseas. The increase in claims cost is then reflected in your travel insurance price.

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The rising costs of medical treatment

As medicine becomes more and more advanced, doctors and surgeons are able to try a variety of treatments to get you fighting fit. Sophisticated healthcare comes with a hefty price tag though – so while the EHIC can reduce the cost of medical expenses in Europe, it can run into the hundreds of thousands of pounds in other countries around the world.


What's going on in the world

From acts of terrorism to industrial strikes to natural disasters (remember that volcanic ash cloud a few years ago?); factors outside of your control will often affect the price of your travel insurance.

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Legislative changes

Governmental changes to taxation have an effect your price. Insurance Premium Tax (IPT) is a tax on general insurance premiums. IPT on travel insurance is particularly high – 20% on every policy sold.

Buying LV= travel insurance is quick and easy