Insure This, Not That: 3 Things You Shouldn’t Quote in Your Travel Insurance

Last Updated: October 17, 2019February 9, 2022

ST. PETERSBURG, Fla., October 17, 2019 — Insuring a trip can save travelers from financial loss when the unexpected happens, but many travelers overspend on their travel insurance under the impression that insuring more is better. Travel insurance comparison site, Squaremouth, reveals three things travelers should not include in their travel insurance quote.

Refundable Trip Costs

Travelers insuring the cost of their trip can expect to spend between 5-10% of their trip cost on a travel insurance policy, so it’s important to remember: the lower the trip cost, the lower the premium.

To save from spending more than necessary on a policy, travelers should only insure the pre-paid, non-refundable trip expenses they would lose if they can’t take their trip.This includes expenses such as airfare, hotel accommodations, tours, and excursions, among others.

Buying Tip: If a hotel requires a 50% penalty to cancel a hotel reservation, travelers should insure just that amount, rather than the full cost of the hotel.

Credit Card Points or Miles

According to Squaremouth data, approximately 20% of travelers pay for their trips with frequent flier miles or credit card points, but few know not to insure the value of those miles within a travel insurance policy. Frequent flyer miles and reward points are never covered by travel insurance

Buying Tip: Travelers can insure all taxes and fees associated with their air miles or reward points. Some providers also provide coverage to rebank or redeposit the air miles if a traveler cancels their trip, depending on the policy.

Expenses Not in Your Name

Travel insurance only provides coverage for trip cost purchases made by the insured, so it is important for travelers to only insure trip costs that are listed under their name.

Buying Tip: If a traveler is sharing the cost of a rental house, villa, or condo, they should only insure the expenses that are specifically listed in their name on the rental agreement.