Trip cost is vital to finding the right travel insurance plan. Your calculated trip cost will have a hand in determining the price of a plan. Sometimes travelers get tripped up when they hear trip cost. When we say trip cost, what we really mean is insurable trip cost.
What does insurable trip cost mean? Essentially, you can only insure pre-paid, non-refundable expenses. In other words, the amount of pre-paid money that will not be completely refunded in the event of a covered cancellation is fair game to cover.
Typically, this amount is comprised of airline tickets, cruise costs, pre-paid hotels and tours or excursions. Almost all plans will also insure expenses like event tickets or theme park admissions. Expenses like tuition or class fees, popular expenses for business trips, are also insurable, but only with specific companies.
While calculating trip cost is fairly straight forward, sometimes it can get a little complicated. For instance, costs that you do not have to pay prior to traveling, but will be assessed in the event of a covered cancellation, can be insured. This may include the balance on a tour package or hotel stay that is scheduled to be processed upon your arrival, whether you have to cancel your trip or not. The amount of money that you would lose if you have to cancel your trip prior to departure is what you want to insure. Also, if you are booking a flight using frequent flier miles, you may want to look at closer at your travel insurance company’s stance on insuring them. In most cases, only the taxes and fees associated with them can be insured.
It’s extremely important to calculate your trip cost correctly, as your travel insurance plan price and benefit eligibility rely on it. In some cases, you must insure 100% of your pre-paid, non-refundable expenses to be eligible for some benefits. If you have any questions you can contact one of our customer care representatives to help.