Travel insurance is one of the smartest things you can add to a holiday budget. It can pay for emergency medical treatment overseas, a cancelled trip, a delayed flight or lost baggage. Even so, some travellers skip it because they assume the premium will be too high.
In reality, the price of travel insurance is not fixed. Two people flying to the same city can pay very different amounts. Insurers set your premium based on how likely you are to make a claim and how costly that claim could be.
Here are the main factors that affect your travel insurance price, with real examples from a Malaysian plan.
An insurer looks at the risks of your trip before it quotes a premium. A longer trip to a country with expensive hospitals carries more risk than a weekend in a nearby city. Your age, the people you are covering and the level of protection you choose also play a part.
Some Malaysian insurers publish premium tables that show how the price changes with each of these factors. The examples in this article come from the premium table for Zurich’s Z-Travel Insurance (International) Lite Basic plan. Prices differ between insurers, so treat them as an illustration only.
1. Your destination
Where you are going is one of the biggest factors. Insurers group countries into areas or zones, and each zone has its own rates. Countries in Asia are usually in the cheapest zone, while worldwide cover costs more.
For example, Zurich Malaysia uses three areas. Area 1 covers many Asian countries plus Australia and New Zealand. Area 2 covers the rest of the world except Canada, the USA and a few other countries. Area 3 is worldwide, which means it includes the USA and Canada.
Why do the USA and Canada cost more? Medical treatment in these countries is very expensive, so a hospital stay or emergency evacuation could lead to a much larger claim. Distance matters too, as bringing a traveller home for treatment costs more from further away.
Insurers may also look at risks such as natural disasters or political unrest. Be aware that some policies, including Zurich’s, exclude claims caused by events that were already publicly known before you bought your policy or booked your trip.
2. How long you will be away
The longer your trip, the more days there are for something to go wrong. That is why the price rises with each duration band. The table below shows how destination and trip length work together.
Trip length
Area 1
Area 2
Area 3
1 to 5 days
RM28
RM39
RM51
6 to 10 days
RM37
RM52
RM68
11 to 15 days
RM53
RM79
RM103
16 to 20 days
RM67
RM97
RM128
Example premiums for one adult on Zurich’s Z-Travel Insurance (International) Lite Basic plan, before stamp duty and optional add-ons. Prices are taken from the insurer’s published premium table and may change.
On this plan, a five-day trip to Bangkok costs less than a quarter of a 20-day trip to the USA.
3. Your age
Premiums tend to go up as travellers get older. Older travellers are statistically more likely to need medical treatment overseas, and their claims are often larger. Many insurers also set age limits or offer separate senior plans.
Zurich’s plan, for instance, covers adults up to 70 years old on its standard plans, while travellers aged 71 to 85 need its Senior Cover. On the Basic plan for Area 1, a senior pays RM49 for a 1 to 5 day trip, compared with RM28 for a standard adult.
Your medical history matters as well. A pre-existing condition, such as heart disease or diabetes, raises the chance that you will need treatment while overseas or cut your trip short.
Rather than charging more, many standard travel insurance plans in Malaysia simply exclude pre-existing conditions. This means a claim linked to an existing illness may be rejected. If you have a medical condition, check the exclusions in the policy wording carefully and ask the insurer whether any cover is available before you travel.
5. The plan tier and coverage limits
Most insurers sell their travel plans in tiers. Higher tiers come with higher limits for medical expenses, trip cancellation and personal belongings, so they cost more. On Zurich’s Lite range, a 1 to 5 day trip in Area 1 costs RM28 on the Basic plan and RM45 on the VIP plan.
This is also where your belongings come in. If you travel with a camera, laptop or other valuables, a higher tier usually offers a higher limit for each item.
Do not choose a plan on price alone. A cheap plan with a low medical limit may not be enough for a serious illness abroad. Our article on why medical coverage matters in travel insurance explains what to look for.
6. Who you are covering
A policy for one person costs less than a policy for a couple or a family, but a family plan can be better value than buying separate policies for everyone. On the same Zurich example, a family pays RM72 for a 1 to 5 day trip in Area 1, compared with RM28 for one adult and RM53 for a couple.
Family plans have their own rules on how many children are covered and up to what age, so check the definition of family in the policy before you buy.
7. Single trip or annual cover
A single trip plan covers one journey. An annual plan covers several trips within a year, which costs more upfront but can work out cheaper if you travel often. Annual plans usually limit how long each trip can last. Zurich’s annual cover, for example, allows up to 100 consecutive days per journey.
What you plan to do on holiday affects your cover too. Hazardous sports are a common exclusion in travel insurance, as InsuranceInfo explains. Zurich’s plan, for example, excludes mountaineering above 3,000 metres. If your trip includes a risky activity, you may need a plan or an add-on that covers it, which usually means a higher premium.
Other optional benefits, such as COVID-19 cover, are also charged separately. On Zurich’s Basic plan, the COVID-19 add-on costs an extra RM4 for a 1 to 5 day trip in Area 1. Only add the extras that match your trip.
How to get a fair price for your travel insurance
Enter your exact travel dates so you only pay for the days you need
Choose a family plan when travelling with your spouse and children
Consider an annual plan if you travel several times a year
Add optional cover only for activities you will actually do
Compare several insurers side by side before you pay
Comparing plans is the quickest way to see how these factors affect your own quote. You can compare travel insurance in Malaysia and choose the plan that balances price and protection.
Get the right cover at the right price
Your travel insurance price depends mainly on where you are going, how long you will be away, your age and health, and the level of cover you choose. Understanding these factors helps you avoid overpaying while still getting the protection you need.
Compare travel insurance plans from trusted insurers and get a free quote at Bjak before your next trip.
It depends on your destination, trip length, age and plan. As an example, one Malaysian insurer charges from RM28 for a 1 to 5 day trip within Asia on its basic plan for one adult, while longer trips and worldwide cover cost more. Always compare current quotes before you buy.
Why is travel insurance more expensive for the USA?
Medical treatment in the USA and Canada is very expensive, so claims from these countries can be much larger. Many insurers place them in their highest-priced zone or only cover them under worldwide plans.
Does my age affect my travel insurance price?
Yes. Premiums usually rise as travellers get older, and many insurers have age limits or separate senior plans. Check the entry age for every person you plan to cover.
Are pre-existing medical conditions covered by travel insurance?
Many standard travel insurance plans in Malaysia exclude pre-existing conditions. Read the exclusions in your policy wording and ask the insurer before you travel if you have an existing illness.
Is an annual travel insurance plan cheaper?
An annual plan costs more upfront than a single trip plan, but it can be cheaper overall if you travel several times a year. Check the maximum number of days allowed for each trip.
Is a family plan cheaper than individual policies?
Often, yes. A family plan usually costs less than buying separate policies for each family member. Check how the policy defines family, including the age limit for children.
Nabil Farhan· · 6 min read
