Trip Cost: What Goes Into It

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.
Written by on 8/6/13.
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Question:


My sister lives in Taiwan, she wants to attend the princess cruise, can she buy the travel insurance?
MayL,
05/03/2014

Answer:


The Medical Plans are available to residents of most countries. The Comprehensive Package Plans, which include trip cost protection, are only available to residents of the United States.
NicholeH,
Customer Care insureMyTrip
05/03/2014
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Question:


Should I include costs for items I have not purchased yet, but will purchase before leaving? For example, theme park tickets are non-refundable, but I haven't bought them yet. Can the coverage amount be adjusted after the initial purchase?
Andrea,
04/25/2014

Answer:


Yes, you would be able to add on the costs after purchasing the policy. In the event you add additional trip expenses after you purchase a policy, you must call us within 10-21 days (policy specific) of adding the additional expenses so we can re-quote your policy and add the additional trip cost onto your existing policy.
NicholeH,
Customer Care insureMyTrip
04/25/2014
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Question:


One of my hotels is not pre paid, but I will be charged if it is not canceled prior to a certain date. Will that be covered?
Christina,
03/03/2014

Answer:


If this is an amount of money that you would lose if you had to cancel the trip prior to departure, then yes, you can insure that.
David M.,
Customer Care insureMyTrip
03/03/2014
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Question:


Is the total cost of airline tickets covered by trip insurance, i if the airline will give you a year from date of issue to fly, minus a $250.00 change fee. Would the insurance cover only the $250.00 fee or the whole cost of the tickets? I am trying to decide whether or not to include ticket cost for the insurance coverage? Thank you!
Joan,
02/08/2014

Answer:


These policies are designed to reimburse you if you cancel your trip completely due to a covered reason. You would insure the full value of the tickets so you could be reimbursed for the full value of the tickets. These would not reimburse for a change fee.
NicholeH,
Customer Care insureMyTrip
02/08/2014
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