Travel Insurance vs. Self-Fund Calculator

Decide whether to renew a premium travel insurance plan or bank the money yourself. Provide trip counts, average trip value, policy pricing, and claim probability to compare the expected loss against policy costs and the cash reserve needed to self-insure.

Count domestic and international journeys you want covered.
Include prepaid airfare, lodging, tours, and non-refundable deposits.
Cost of a comprehensive yearly policy for the household.
Enter average single-trip premium to compare with the annual plan.
Likelihood of trip cancellation or medical event. Leave blank for 6%.
Set a cushion relative to total trip spend you want in reserve.

Illustrative comparison—check policy exclusions and consult an insurance professional for personalized advice.

Examples

  • 8 trips at $3,000 each, annual premium $780, 6% claim risk ⇒ expected claim losses $1,440, reserve target $24,000, insurance advantage $660
  • 2 luxury trips at $12,000, $520 per-trip premium, 8% claim risk, 120% reserve ⇒ policy spend $1,040 vs. $28,800 reserve with $1,920 expected losses

FAQ

What does the claim probability represent?

It is the chance that a single trip generates a reimbursable event (cancellation, interruption, or medical). Adjust it based on health, destinations, and trip complexity.

Should I model medical evacuation separately?

Yes—medical evacuation benefits can exceed $100,000. If that risk concerns you, keep a base policy or add an evacuation membership even if you self-fund cancellation coverage.

How do credit card protections factor in?

Premium cards often cover part of cancellation or baggage. Reduce the average trip value by the amount your card reimburses to avoid double-counting coverage.

What if I travel more than expected?

Update the trip count and per-trip premium; annual plans usually break even above 3–4 trips, while self-funding needs a larger reserve as your itinerary grows.

Additional Information

  • Travel insurers price based on trip cost, traveler age, destination, and medical coverage—premiums scale quickly for seniors or cruises.
  • Self-insurance requires liquidity; park the reserve in a high-yield savings or treasury ladder earmarked for emergencies.
  • Factor in credit card perks and evacuation memberships—those benefits reduce the trip value you need to cover personally.
  • Revisit the calculator annually; new destinations, health changes, or premium hikes may swing the decision.

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