Trip Cost & Travel Insurance

Read time: 3 mins

The total cost of your trip, or trip cost as we refer to it, is an important component to a travel insurance quote for an all-inclusive or trip cancellation plan. These plans have benefits that can protect your financial investment in your trip, referred to as Trip Cancellation or Trip Interruption. Calculating a total “insurable” trip cost can be overwhelming when you consider the nuances of trip protection. Providing a trip cost will allow you to compare the best options for travel insurance available to you.

What does insurable trip cost mean?

When you calculate your trip cost to purchase a travel insurance plan, you need to consider a certain type of trip expense: the prepaid, non-refundable costs. As we like to say, “If you wake up the morning of your trip and need to cancel, how much money will you lose?”

This means you shouldn’t insure anything you plan on booking after you leave for your trip. Nor should you insure anything that is 100% refundable.

How do I calculate trip cost for travel insurance?

When you are reviewing your trip reservations, first consider the basics: transportation (such as flights, cruises, etc.) and accommodations (such as hotels, resorts or vacation homes). Then review the cancellation policies of the other items or events on your itinerary: city tours, museum tickets, cruise excursions, and concert or show tickets. Expenses that you’ve paid for before you leave for your trip AND are non-refundable, you’ll want to add to your trip cost.

How does trip cost affect the price of travel insurance?

When you insure your trip cost, you may see the price of travel insurance increase. An all-inclusive plan will include emergency medical benefits, but it also includes benefits for trip cancellation, trip interruption and travel delay. These three benefits could provide reimbursement for your trip cost if something affects your trip timeline and is listed on the policy as a “covered reason”. Understanding the policy exclusions and inclusions is extremely important and we recommend reading through the details before you purchase the insurance.


DISCLAIMER: This guidance in this article is provided for informational and educational purposes only. It is intended to offer guidance regarding travel insurance and the benefits which may be available. It does not guarantee coverage for any traveller. The information in this article reflects the most up-to-date information available at the time of publication. If you have questions regarding specific coverage details or available travel insurance plans, please contact our licensed customer care team.