Correctly calculating trip cost is vital to finding the right travel insurance plan. Your final trip cost will have a hand in determining the price of a plan. Sometimes, travelers get tripped up when they hear trip cost because they assume it includes every expense made while traveling. However, the “insurable” trip cost is not the same as “total” trip cost.
What Does Insurable Trip Cost Mean?
Essentially, you can only add prepaid, non-refundable expenses to a travel insurance plan. In other words, you can only insure the amount of prepaid costs that will not be refunded entirely in the event of a covered cancellation.
Typically, these expenses comprise of airline tickets, cruise costs, and even hotels, tours, and prepaid excursions. Almost all plans insure expenditures like event tickets or theme park admissions too. Expenses like tuition or class fees and popular expenses for business trips are also insurable, but only with specific companies.
How Do I Calculate Trip Cost?
Calculating trip cost may not be as straightforward as we would all hope. For instance, costs that you do not have to pay before traveling, but will be assessed in the event of a covered cancellation, can be insured. Any money that you would lose if you have to cancel your trip before departure, or on the day of, is what you want to insure.
If you are booking a flight using frequent flyer miles, understand they cannot be added to your trip cost for a travel insurance plan. Only the government taxes and fees associated with the frequent flyer miles can be insured, but the miles/points may not. This is because the credit card or airline will have a way of reimbursing the points or miles.
The price of a travel insurance plan and the benefit eligibility rely on trip cost. Remember, you must insure 100% of your prepaid, non-refundable expenses to be eligible for certain benefits. Don’t forget that you can always add trip cost to your plan after purchase. The key is to purchase a plan as soon as you make your first trip payment or book your flights. If you add costs as you get closer to your departure date, you can add this to your insured trip cost, but know those additions to your trip cost may result in a higher premium due to some benefit levels increasing.
Disclaimer: The information contained in this article serves as a general overview of benefits and should only be used for informational purposes. Refer to your individual certificate of insurance for specific coverages, exclusions and benefits. When in doubt, please contact one of our licensed agents for additional assistance.
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Question
I have just rented a villa in Jackson Hole for a family vacation in fall of 2019. However, I will not purchase either airline tickets or a guided fishing trip, both of which I would like to insure, until closer to the trip. Do I just estimate what those costs will be or do they have to be exact? How do I insure part of the trip now and the other part later on??
By Peggy - July 18, 2018
Answer
You can insure what you have paid for to date or any known costs, and once you make subsequent payments towards the trip, you can contact us and update your existing policy accordingly, as long as you contact us prior to departure.
By MattG - July 21, 2018
Question
I will be traveling to Japan. I just paid for my airline tickets. I may be making some restaurant reservations that require non-refundable fees. If the insurance coverage I select includes the value of these fees are these amounts covered by trip insurance?
By RonaldW - January 24, 2019
Answer
If the restaurant reservations are prepaid and non-refundable prior to the departure date of the trip, you can insure the cost of these reservations along with all other prepaid non-refundable travel arrangements.
By MattG - January 24, 2019
Question
Should I insure the base cost of my cruise or do I add the taxes and port charges
By Renee - July 15, 2019
Answer
If the taxes and port charges are prepaid and non-refundable prior to departure you can insure this expense with all other prepaid non-refundable travel arrangements.
By MattG - July 16, 2019
Question
I'd just like to be super clear. If I have to pay a cruise deposit asap - over a year before departure and the final payment either 90 or 120 days before, and plan to buy airline tix closer to the date, can I wait until then, or should I buy now and add costs as they accrue?
By TracyC - January 11, 2021
Answer
You can purchase most policies up until the day before departure, however; you may not be eligible for some time sensitive benefits if you do not purchase within 10-21 days of the initial trip deposit/payment. Some time sensitive benefits are, but not limited to: Pre-Existing Condition Waiver, Financial Default, Terrorism, Cancel For Any Reason and Cancel For Work Reasons. You can insure what you have paid for to date and any known costs. Once you make subsequent payments towards the trip prior to departure, such as buying airline tickets, you can contact us and update your existing policy accordingly.
By MattG - January 13, 2021
Question
The policy I am looking at states you must insure for pre-paid trip costs that are subject to cancellation penalties or restrictions in order to qualify for the pre existing conditions waiver. If I purchase airline tickets with no change fees ( I can use the money towards another flight in the future) does the cost of the airline tickets need to be included to qualify for the waiver?
By Dennis - May 17, 2021
Answer
Yes, the airfare or travel arrangements have to be 100% refundable in cash (not a credit or voucher) on the day of departure to not be able to insure that expense. If it is not fully refundable, you will need to insure that expense with all other prepaid non-refundable travel arrangements to be eligible for the pre-existing conditions waiver. Most Comprehensive Plans will offer a waiver of pre-existing conditions if you meet the following conditions: You purchase the policy within 10 - 21 days of making your first trip payment; insure ALL prepaid non-refundable expenses prior to your departure date; and be medically fit to travel the day you purchase the policy.
By MattG - May 18, 2021
Question
Does “Cancel For Any Reason” coverage include “Cancel For Work” and “Cancel Event”?
By Ina - April 6, 2022
Answer
With "Cancel for Any Reason", you can cancel for any reason whatsoever as long as you qualify for this coverage. "Cancel for Work Reasons" is a separate benefit under Trip Cancellation which reimburses 100% if you meet the requirement for that benefit stated in the certificate. There are typically 3 conditions that must be met to purchase a Cancel For Any Reason Rider: Purchase the policy within 10 - 21 days of First Trip Payment; Insure ALL prepaid and non-refundable travel expenses prior to departure; Trip arrangements must be canceled more than 48 -72 hours prior to the departure date. If you meet all 3 of these conditions, this benefit will typically reimburse you 75% of your trip cost, unless otherwise noted.
By MattG - April 16, 2022
Question
If a trip is interrupted due to illness before you entered the countries that required visas, can you include the visa cost in your travel insurance claim?
By Helaine - December 22, 2022
Answer
The cost to obtain a visa or a passport is not insurable with Trip Cancellation / Trip Interruption, unfortunately.
By MattG - December 24, 2022
Question
In addition to flight tickets and hotels, I also prepay sport event tickets and show tickets. All are non-refundable. Are these items include in the travel insurance?
By emily - April 13, 2023
Answer
Yes, you can insure all prepaid non-refundable travel arrangements paid for prior to departure including prepaid non-refundable event tickets.
By MattG - April 22, 2023
Question
what is the "total cost of trip" when purchasing travel insurance for a vacation rental home and when splitting the all rental costs with friends. The home rental will be in my name alone and my friends will be reimbursing me for rental costs.
By JoanB - July 29, 2023
Answer
The total trip cost on the policy should reflect all prepaid non-refundable travel arrangements paid for prior to departure for everyone that is listed on the policy. If you are renting a vacation home and the rental agreement says that other occupants or guests will be staying in the rental, they will also have to be listed on a policy if you want to cover the total cost of the vacation rental. We suggest calling us and speaking with a representative so we can better assist you with a quote.
By MattG - August 3, 2023
Question
I booked a trip to India in February 2025. First payment was made June 18th. Will anyone still sell cancel for any reason trip insurance?
By MarkusR - August 12, 2024
Answer
Unfortunately, this benefit is no longer available for purchase. You can purchase most policies up until the day before departure, however; you may not be eligible for some time sensitive benefits if you do not purchase within 10-21 days of the initial trip deposit/payment. Some time sensitive benefits are, but not limited to: Pre-Existing Condition Waiver, Financial Default, Terrorism, Cancel For Any Reason and Cancel For Work Reasons.
By MatthewG - August 13, 2024