Is the cost of travel insurance influenced by prior claims?

You may be aware that auto and property insurance categories take into account the number of prior claims you have made against your policy, which increases your annual premium. You become riskier to insure with every claim you make. Does the same thing happen with travel insurance?

The calculation for your travel insurance premium varies by insurance company and the type of plan you choose.

What is used to calculate your premium?

For coverages such as trip cancellation and interruption, your premium will take into account the total cost and length for your trip. If your trip is expensive and gets cancelled midway, your insurer sees more risk.

When you take longer trips, your insurance provider thinks the likelihood of you falling ill or sustaining an injury will increase, despite your best intentions.


The age of travellers impacts the cost of your premium simply because older travellers are more susceptible –statistically– to illness and injury abroad.

Age brackets increase in price, with those under 60 paying least, while those aged between 60 and 65 will see a slight increase. Anyone over age 75 can expect to pay higher premiums. Shopping around for the right coverage and insurance company is the best way to get the lowest price.


Next, your health status will be factored into the equation as well. If you have pre-existing conditions, your medical travel insurance plan will have to factor in any physical illness, injury or condition that has been diagnosed before you applied for your insurance policy.


If you have any additional options added to your policy, such as baggage loss or hazardous sports coverage, your premium will reflect these extras.

There are also a host of other optional factors that influence your travel insurance terms, you can read about them in detail here.

Do prior claims impact your premium cost?

In other insurance categories like property and auto, prior claims have a significant influence on your premium price. Your claims are monitored in a database and go on to suggest that the more claims you make, the riskier you are as a policy holder.

We posed this question directly to a travel insurance agent, and asked if prior claims affect our premiums in the same way, she promptly assured us that the answer is NO.

Your premium is only determined by the age of the insureds, the cost of the trip and the length of your trip, as mentioned above, plus any additional coverages you decide to include.