Figuring out what your Trip Cost should include is usually fairly simple. The exact amount can be determined by keeping in mind one simple rule: only expenses that are pre-paid and non-refundable can be covered by insurance. In other words, you can only insure costs that you're paying before leaving on your trip that will not be refunded to you if you cancel.

Most of the time this will be comprised of costs such as airline tickets, cruise costs, pre-paid hotels, and tours or excursions. Almost all polices will also insure expenses like event tickets or theme park admissions. Expenses like tuition or class fees are also insurable, but only with specific companies.

There are a few cases where this can seem a little complicated:

  1. Costs that you are not paying prior to departure but you will be charged for whether you travel or not. These costs can be insured because you are still going to suffer a loss if you cancel.
  2. Frequent flier miles and credit card points are a very complicated topic and are discussed in more detail under the article Frequent Flier Miles.