How to use this travel insurance cost vs risk calculator

1. Enter the travel insurance premium for your trip.
2. Estimate the probability of a covered event (medical, cancellation, delay, theft).
3. Enter the expected loss amount if an event happens.
4. Optionally add a deductible and coverage limit.
5. Compare expected cost with insurance vs expected risk without insurance.

Example

If travel insurance costs $80, event probability is 5%, expected loss is $2,000, deductible is $100, and coverage limit is $2,000:

• With insurance expected cost = $80 + (0.05 × $100) = $85
• Without insurance expected cost = 0.05 × $2,000 = $100
• Expected value suggests travel insurance is worth it in this scenario

More tools in Finance Tools

• Is Insurance Worth It Calculator

  Estimate whether an insurance plan is worth it by comparing expected annual costs with and without insurance based on premiums, risk, and potential losses.

• Insurance Deductible Cost Calculator

  Estimate your annual out-of-pocket cost and total annual cost based on premium, deductible, coinsurance, and expected covered expenses.

• Insurance Claim Break-Even Calculator

  Estimate whether filing an insurance claim is worth it by comparing expected payout vs deductible and potential premium increase over time.

• Short-Term vs Annual Insurance Cost Calculator

  Compare short-term insurance vs annual insurance by estimating total cost over your coverage period and finding the break-even point.