Your Trip Cost is the sum of all your prepaid, non-refundable expenses made towards a trip. Essentially, this is the amount of money you stand to lose if you had to cancel your trip before it departs.
Whether you’re planning an international adventure or a trip within the United States, you’ve likely had to make some bookings or reservations leading up to your departure date. Any of these prepaid, non-refundable expenses can be insured and protected by your travel insurance policy.
Common examples of trip costs that can be insured include:
Providing an accurate representation of your trip costs is important when purchasing a comprehensive travel insurance policy that includes cancellation benefits. Providers will use the figure to determine how much reimbursement you are eligible for if your trip is canceled or interrupted for a covered reason.
You may choose to insure none, some, or all of your trip cost when purchasing comprehensive travel insurance. However, some benefits like Pre-Existing Medical Condition coverage and Cancel For Any Reason coverage require you to insure 100% of your pre-paid and non-refundable trip cost.
Calculating trip costs isn’t always straightforward. Planning a trip takes time, and you’ve likely made trip deposits at various stages of the planning process. With that in mind, here are some tips to help you calculate the expenses you made leading up to your trip.
The trip costs you enter play an important role in determining your policy’s price and coverage.
No, you can choose just to insure a portion of your trip costs. However, some benefits, including Pre-Existing Medical coverage and Cancel For Any Reason coverage, require you to insure 100% of your pre-paid and non-refundable trip costs.
Yes, you can insure your trip deposit now, even if you haven’t insured your entire trip. Most travel insurance providers allow you to modify your policy after you purchase it. This includes adding additional trip costs, adding additional coverage, or cancelling your policy if you’re within the Money Back Guarantee window. You can simply contact your insurance provider as you make additional purchases to include them in your policy.
However, keep in mind that CFAR coverage requires you to insure 100% of your trip cost. This means you will have to make the remainder of your trip payments and adjust your trip cost within the policy’s 14-21 day window.
You should include any prepaid and non-refundable travel arrangements in your trip cost. Eligible bookings include:
You have multiple options:
Note, policies with time-sensitive benefits, such as Pre-Existing Condition coverage and Cancel For Any Reason, must be purchased within 14-21 days of your initial booking date.
It is common for travel arrangements to change, and most travel insurance providers will allow you to update your trip cost if it increases. You can do so online, or by contacting your provider using the phone number in your policy confirmation email or on our providers page.
You can typically increase your trip cost as many times as you need to until the day before departure.
There are no penalties or fees for adding to your trip cost, but it will increase your premium. Also, keep in mind that some time-sensitive benefits like CFAR require you to insure 100% of your trip cost within a 14-21 day window in order to maintain coverage.
You should include just the amounts that you are responsible for when calculating your trip cost. If you are sharing the cost of a rental house, villa, or condo, you may include the expenses that are listed in your name on the rental agreement. If the rental agreement does not specifically state the amount that you are responsible for, we recommend requesting this documentation from the rental company in the event you need to file a claim.
No, frequent flier miles and points are not insurable and should not be included in your trip cost. However, you can insure the taxes and fees associated with your points or miles.