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7 Cheapest Travel Insurance Companies for Budget Travelers (2025)
July 1, 2025
Travel insurance doesn’t have to break the bank. In fact, even if you’re traveling on a shoestring, an affordable policy can save you from huge losses if things go wrong. While it’s tempting to skip insurance to cut costs, doing so could expose you to significant financial risks and ruin your trip.
The good news is that plenty of budget-friendly travel insurance options offer solid coverage for a fraction of what your trip costs. On average, a comprehensive travel insurance plan runs about 5–10% of your trip cost, and there are even bare-bones plans that come in lower. Below, we’ll highlight some of the cheapest travel insurance companies and how to choose an affordable policy that still meets your needs.
Why Budget Travel Insurance Is Worth It
Even budget travelers need insurance. Travel is unpredictable – flights get canceled, bags get lost, people get sick or injured abroad. Without insurance, you’d have to eat those costs yourself. A low-cost travel insurance plan can cover these mishaps for much less than the potential loss you’d face otherwise. Experts actually recommend choosing the least expensive policy that still covers your needs rather than splurging on extras you don’t require. In other words, you don’t need the priciest plan for peace of mind; you just need the right coverage.
Moreover, many travelers already have some free protection and don’t realize it. Credit cards often include travel insurance perks, like trip delay coverage, baggage loss reimbursement, or emergency medical coverage, if you use the card to book the trip. These built-in benefits can allow you to buy a cheaper policy with just the supplemental coverage you need. Affordable travel insurance exists, and it’s absolutely worth it. Next, let’s look at some of the top budget-friendly travel insurance companies and what they offer.
Cheapest Travel Insurance Companies in 2025
When it comes to cheap travel insurance, not all providers are created equal. Choosing a policy based solely on the lowest price can backfire if it lacks crucial coverage when you need it most. Ideally, you’ll want an insurer that combines affordable premiums with comprehensive, reliable protection. The best budget-friendly travel insurance companies offer plans that include essential coverage—such as trip cancellation, trip interruption, emergency medical care, baggage protection, and more—without hidden fees or confusing fine print.
After reviewing dozens of providers, we've identified several reputable companies that excel at delivering trustworthy and cost-effective coverage, making sure you're protected without overspending. Here's a closer look at the top affordable travel insurance providers to consider in 2025.
Shopping for insurance? With Kudos, you can quickly compare top travel insurance offers and even uncover hidden perks on your credit cards that might cover your trip – all for free and in one place. It’s an easy way to make sure you’re getting the best protection at the best price.
Travelex Insurance Services
Travelex Insurance Services is a top choice for travelers carrying valuable gear or expensive personal items. They offer comprehensive protection at a reasonable price, covering critical travel mishaps like trip cancellation, lost baggage, flight delays, and medical emergencies. One significant advantage is their specialized coverage options designed explicitly for protecting valuable possessions such as cameras, laptops, or sports equipment.
Additionally, Travelex provides flexible upgrades, including rental car damage coverage and a popular “Cancel For Any Reason” (CFAR) add-on, giving travelers greater peace of mind. Families, photographers, and anyone traveling with high-value items will find Travelex’s offerings both affordable and highly beneficial.
Faye Travel Insurance
Faye Travel Insurance has quickly become a favorite among travelers looking for transparent, affordable, and straightforward coverage. With its clear pricing structure, no hidden fees, and a user-friendly mobile app, Faye simplifies travel insurance by focusing solely on the essentials: protecting your trip, health, and belongings without aggressive upselling. Their policies emphasize ease of use, backed by reliable 24/7 customer support accessible directly through the app. Budget-conscious travelers who value simplicity, clarity, and no-fuss coverage will appreciate Faye’s honest approach and competitive pricing.
John Hancock Travel Insurance
John Hancock Travel Insurance caters especially well to seniors, families, and multi-generational travelers seeking comprehensive coverage at budget-friendly rates. Their basic policies already provide broad protections—covering everything from trip cancellations and interruptions to travel delays, lost baggage, and medical emergencies—without significantly raising costs. They also offer flexible add-ons for travelers needing extra coverage.
John Hancock stands out through its family-friendly options, allowing easy inclusion of children and grandchildren under the same policy. Additionally, their strong reputation for responsive, around-the-clock customer service adds peace of mind, making them an excellent choice for travelers prioritizing safety and convenience without overspending.
Seven Corners
Seven Corners stands out among frequent travelers, digital nomads, or business professionals who embark on multiple trips each year. Their highly affordable annual travel insurance policies eliminate the hassle of securing coverage for each journey separately, thus providing considerable long-term savings. Each comprehensive annual plan includes critical protections such as medical coverage, trip cancellation and interruption benefits, emergency medical evacuations, and 24/7 global assistance.
Travelers can further customize their policies with extras like a valuable Cancel For Any Reason (CFAR) add-on, reimbursing up to 75% of trip costs if plans change unexpectedly. Seven Corners offers exceptional convenience and consistent reliability for those frequently on the move.
Tin Leg
Tin Leg Travel Insurance excels at delivering outstanding value for travelers on the tightest budgets. Recognized as one of the most affordable yet trustworthy insurers in the industry, Tin Leg offers multiple plan tiers designed explicitly to match various financial comfort levels. Even their entry-level plans cover essential protections—trip cancellation, delays, baggage disruptions, and emergency medical expenses.
Travelers seeking additional coverage can easily include adventure sports protection or higher medical coverage limits as optional add-ons. Backpackers, solo adventurers, and frugal travelers looking for straightforward yet robust protection without unnecessary frills will find Tin Leg’s offerings perfectly suited to their needs.
Arch RoamRight
Arch RoamRight specializes in providing affordable and comprehensive travel insurance specifically tailored for adventure seekers and thrill enthusiasts. Unlike many insurers, Arch RoamRight explicitly includes coverage for adventurous or extreme activities—such as scuba diving, skydiving, skiing, and bungee jumping—activities typically excluded from standard travel insurance policies.
Their plans also feature robust coverage essentials like emergency medical and evacuation assistance, trip cancellation, interruption protections, and convenient 24/7 customer support. Additionally, Arch RoamRight frequently offers family-friendly perks, including free coverage for one child under 18 per insured adult, making it especially appealing to families combining adventure with budget-consciousness.
GeoBlue
GeoBlue, affiliated with Blue Cross Blue Shield, stands out among travelers primarily seeking reliable and high-quality medical insurance abroad. They emphasize extensive medical coverage, access to an expansive global network of trusted doctors and hospitals, and reliable support for travelers requiring medical assistance internationally. GeoBlue offers single-trip and multi-trip insurance plans, ideal for expatriates, long-term travelers, or those heading to remote destinations where dependable medical coverage is essential.
While GeoBlue’s premiums may be slightly higher compared to bare-bones policies, the superior medical benefits, extensive network, and peace of mind their coverage provides make GeoBlue an outstanding value for those prioritizing health and safety during international travel.
Tips to Find Affordable Travel Insurance And Conclusion
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Finding the most affordable travel insurance for your needs is all about smart shopping. Here are some tips to save money while staying protected:
- Shop around and compare quotes. Prices can vary widely between insurers for the same trip. Use an online comparison tool or get quotes from at least 3 providers. Many companies let you get quotes in minutes after inputting your trip details. By comparing, you’ll spot which policy offers the best value.
- Decide what coverage you really need. Think about what scenarios worry you most. If you prepaid for an expensive tour, trip cancellation coverage is crucial. If you’re traveling abroad, medical coverage and evacuation might matter more. But if you have a refundable ticket or strong credit card coverage for cancellations, you might skip those features. Tailor the policy to cover your biggest risks and skip unnecessary extras.
- Tweak the policy details to save. Many insurers let you adjust deductibles or coverage limits. Opting for a higher deductible or slightly lower coverage limits can significantly cut your premium. Essentially, by taking on a bit more risk (paying the first $100 of a claim, for instance), you’ll pay less upfront. Just be careful to keep the coverage high enough that you’re comfortable. Also, consider whether you really need add-ons like CFAR (Cancel For Any Reason) – they hike the price ~40–50%. Only pay for those upgrades if you truly foresee using them.
- Leverage credit card benefits. As mentioned, check what your credit card offers before buying insurance. Many travel credit cards automatically cover things like trip delays, lost luggage, rental car damage, or even travel accident insurance. If your cards have these perks, you can buy a cheaper travel insurance plan that excludes those coverages (or choose lower limits). For instance, if your card covers baggage loss up to $3,000, you might not need a separate policy for your bags. Using the coverage you already have means you won’t pay twice for the same protection. (Kudos can help by pointing out which of your cards have which benefits!)
By following these tips – compare prices, only pay for what you need, and use other resources at your disposal – you can confidently pick a cheap travel insurance policy that saves you money and saves the day when you need it.
Traveling on a budget shouldn’t mean skimping on protection. The cheapest travel insurance companies out there prove that you can get peace of mind for just a few dollars a day – a small price to pay to safeguard your dream trip. By comparing plans and being savvy about what coverage you need (and don’t need), you can save money and still travel with confidence.
Remember, tools like Kudos are your friend in this process: Kudos can help you maximize your credit card perks and find the best deals, ensuring you’re not leaving any money-saving opportunity on the table. With the right prep, you can embark on your next adventure knowing you’re protected without overspending. Safe travels and happy saving!
FAQ: Cheap Travel Insurance
Is travel insurance worth it if I’m on a tight budget?
Yes. Even budget travelers should invest in travel insurance because a small upfront cost can prevent enormous out-of-pocket expenses if something goes wrong. Skipping insurance to save money is risky – one cancellation or ER visit can cost far more than a basic insurance plan.
Should I always choose the cheapest travel insurance policy available?
Yes – as long as it covers your needs. It’s wise to pick the most affordable policy that still provides the essential coverage you require. The cheapest plan is “best” only if it comes from a reputable company and includes protections relevant to your trip (for example, medical coverage if traveling abroad). Don’t pay for extras you won’t use, but do make sure any budget policy meets your minimum needs.
Do credit cards offer travel insurance coverage?
Yes. Many travel credit cards include insurance benefits automatically, such as trip cancellation/interruption coverage, baggage protection, rental car damage waivers, and travel accident insurance. The coverage applies when you use that card to pay for your trip. However, read the card’s terms – you may need to book the entire fare on the card, and coverage limits vary. These card perks can sometimes substitute for buying a separate policy, but evaluate if the coverage is as comprehensive as you need.
Does a cheap travel insurance plan cover COVID-19 and other pandemics?
Yes. Most travel insurers now treat COVID-19 like any other illness for coverage purposes. That means if your policy covers illness-related cancellations or medical expenses, it will cover COVID-19 as long as it wasn’t a known event when you bought the policy. For example, some budget plans explicitly state that COVID-19 is covered as an illness just like the flu or any sickness. Always check the policy details, but generally a cheap plan from a reputable insurer will include pandemic coverage for emergency medical care or trip interruption, unless specifically excluded.
Can I rely on credit card insurance alone and skip buying a travel insurance policy?
Yes – in some cases. If you have a premium travel credit card with strong coverage and it fits your trip, you might not need a separate policy. For instance, some cards cover trip cancellations up to $10,000 and provide medical evacuation services. However, credit card coverage often has limitations: lower coverage caps, narrower definitions of covered events, or exclusions (e.g. no coverage for pre-existing conditions). It also won’t cover every scenario (like certain adventure sports or high medical limits). So, if your trip is expensive or involves higher risks, you shouldn’t rely on the card alone. Evaluate the gaps – you can always buy an inexpensive supplement to fill in what your card doesn’t cover.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
