How to Calculate your Trip Cost
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 is my trip cost? What factors contribute to my trip cost? To give you some context, we’ll start with a few basic facts about trip insurance in general and then walk you through what exactly makes up your “trip cost” total. Trip insurance policies are a way for you to protect the financial investment of your travels. 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.
How Much Does Trip Insurance Cost?
Trip insurance doesn't cost a lot. And good trip insurance coverage is especially important for pandemic and post-pandemic travel. 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 nonrefundable 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, you should insure 100% 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 a lot of 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 if you need this documentation.