What Does Trip Cost Mean?

Common Prepaid Trip Costs

Whether you’re planning an international adventure or a trip within the United States, it’s likely that you’ve had to make some bookings or reservations leading up to your departure date. Any of these prepaid expenses that are non-refundable can be insured and protected by your travel insurance policy.

Common examples of trip costs that can be insured include:

• Transportation: Airfare, train tickets, and bus tickets
• Cruises: Cruise reservations and any packages, taxes, fees, and port expenses
• Accommodations: Hotels, vacation rentals, retreats, and other forms of lodging
• Ground Transportation: Any airport transfers or limo services you may have planned
• Excursions: Group or private excursions you’ve booked through a tour operator
• Tickets: Shows, concerts, or sporting events you plan on attending

How to Calculate Trip Cost for Travel Insurance

Providing an accurate representation of your trip costs is important when purchasing a comprehensive travel insurance policy that includes cancellation benefits. Providers will use the figure to determine how much reimbursement you are eligible for in the event your trip is canceled or interrupted for a covered reason.

Calculating trip costs isn’t always straightforward. Planning a trip takes time, and you’ve likely made trip deposits at various stages of the planning process. With that in mind, here are some tips to help you calculate the expenses you made leading up to your trip.

• Start With the Major Expenses: You’ll want to make sure that your major trip investments are protected in the event your trip is canceled or interrupted. In most cases, this will be any airfare, accommodation, and cruise bookings you’ve made. Review receipts for your prepaid bookings to get a clear picture of how much you’ve spent thus far. These receipts may also be needed in the event you need to file a claim, so it’s important to save them somewhere that’s easily accessible.
• Only Include Non-Refundable Expenses: When inputting your trip details, you should only include expenses that you’ll be unable to recoup in the event you can no longer travel. For example, if you paid extra for a refundable plane ticket, you should not include this expense as part of your trip costs. If any of your bookings are partially refundable, you should include the dollar amount that you won’t be refunded in the event of a cancellation.
• Update As You Go: You don’t need to wait until all of your bookings are made to purchase travel insurance. Many travel insurance providers allow you to update and modify your trip costs up until your departure date. With each additional trip cost, you can expect your travel insurance premium to increase.
• Insure Trip Costs for All Travelers on the Policy: When calculating your trip costs, it’s important to take into account all of the travelers that are listed on your policy. If you’re traveling with friends or family, and have them covered by your plan, you should take into account any of their prepaid, non-refundable trip expenses.

Trip Costs Impact on Premium & Coverage

The trip costs you enter play an important role in determining your policy’s price and coverage.

• Premium: Your trip cost is a key factor that determines the price of your policy. In general, most comprehensive travel insurance plans will cost between 5-10% of your total insured trip costs.
• Coverage: Most comprehensive travel insurance plans will reimburse up to 100% of your prepaid, non-refundable trip costs if your vacation is canceled or interrupted for a covered reason. Your trip costs you enter will determine how much reimbursement you are eligible for when filing a claim.