If you are considering a policy that includes trip insurance, you may have been asked to provide your "trip cost" in order to get a quote. You are probably wondering: "What factors contribute to my trip cost?" and "How can I calculate my trip cost?"
Trip insurance policies are a way for you to protect the financial investment of your travel. If your travel must be canceled or delayed for reasons covered by your policy, trip insurance can help reimburse you for cancellation and change fees, or for a portion of the overall cost if stipulated in the policy documents.
This type of insurance is especially important in light of the 2020 COVID-19 pandemic. Trip insurance can help protect you financially if you must cancel or delay your trip due to an outbreak at your intended destination or another health emergency. 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 coverage, which allows you to be reimbursed if you cancel or postpone your trip, regardless of your reasoning for doing so.
In order to get this type of 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 are asking the insurer to cover.
To calculate your trip cost 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 will have calculated the cost of your travel that can be insured by at trip insurance policy. In order to receive benefits, customers should insure 100 percent of their prepaid trip costs that are subject to cancellation penalties or restrictions.
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 would like assistance finding the right plan for you, VisitorsCoverage's staff of licensed travel insurance experts is happy to help.