If you're considering a policy that includes trip insurance, you may have been asked to provide your 'trip cost' to get a quote. You're probably wondering: What factors contribute to my trip cost?

Trip insurance policies are a way for you to protect the financial investment of your travel. If your travel plans are canceled or delayed for reasons covered by your policy, trip insurance can help you recoup certain prepaid travel expenses that would otherwise be nonrefundable.


Trip insurance doesn't cost a lot. And good trip insurance coverage is especially important as we enter a post-pandemic world. Depending on the plan you choose, disease outbreaks may or may not be covered by your plan. However, you can always invest in Cancel for Any Reason insurance, which allows you to be reimbursed if you cancel or postpone your trip for any reason.

To buy trip insurance, you may need to provide a dollar amount for your trip cost. This includes any costs that you have already paid and would be non-refundable in the event of a cancellation or delay of your trip. Essentially, you need to add up the costs that you're asking the insurer to cover.

To calculate the cost of your travels, for insurance purposes, add up all of your non-refundable, prepaid costs including any of the following:

  • Flight costs or airline tickets
  • Hotel bookings
  • Vacation home rental costs
  • Excursion prices
  • Train tickets
  • Boat reservations
  • Rental car deposits
  • Tickets to concerts, museums, amusement parks, etc.

Once you add up these costs, you'll have calculated the cost of your trip that can be insured by a trip insurance policy. To receive benefits, should insure 100 percent of prepaid trip costs that are subject to cancellation penalties or restrictions.

A lot of people worry about how much travel insurance costs. But rest assured, the cost of trip insurance is fairly low. When you look at the total cost of all these prepaid expenses, it's easy to see why you should buy trip insurance. Paying a small fee up front can save you that much money if your plans are disrupted.


Depending on the policy, you may be required to provide receipts of your purchases in order to utilize your trip insurance. Be sure to keep all of your receipts or confirmations in an easy-to-find location so that you have easy access to them if you need this documentation.

If you need help finding the best trip insurance for your needs, our Customer Success Team is happy to help. Or you can also find help choosing a policy maximum for your plan.