In order to get a travel insurance quote, you might have been asked to provide your trip cost. Are you wondering about the factors contributing to your trip cost? And asking yourself how to calculate your trip cost? Be with us till the end to get your answers.
First things first, let us understand the insurable trip cost. Afterwards, we will move on to the easy way of calculating your travel insurance cost.
What is the Cost of Travel Insurance Insurable Trip?
Basically, you are only allowed to add prepaid, non-refundable expenses to your travel insurance plan. In simple words, you are only allowed to insure the number of prepaid costs that are non-refundable in the case of covered cancellation.
The example of these expenses is cruise costs, airline tickets, tours, hotel booking, and prepaid excursions. Almost all plans are insurable, but with specific companies. So, before getting one, remember to give a check to the insurance coverage.
Travel Insurance Cost Calculation
Travel insurance cost calculation is not very much straightforward, but also not rocket science. The below calculation method is the same for family travel insurance and travel insurance COVID.
First, let us know how to calculate the insurable trip cost. It is the simplest, add all the non-refundable, prepaid costs that include:
- Airline tickets or flight costs
- Hotel expenses
- The rental cost of a vacation home
- Excursion prices
- Train tickets
- Reservations for boat
- Car rental deposits
- Any other tickets for parks, concerts, museums, etc
Once all added, you have calculated the insurable trip cost of the insurance policy. Remember, at some point, and you might be asked for the receipts of the insurable expenses covered, so keep them in an easy-to-find location.
Now, let us move on to the calculation of trip cost. Trip cost includes the expenses that you do not have to pay before travelling. However, those will be assessed in the case of covered cancellation. In other words, the money which you can lose in the case of cancellation of your trip should be added for calculation of trip cost.
If you want to cover cancellation and have other benefits, remember to ensure 100% of your prepaid, non-refundable expenses.
The calculation is a simple addition, but you must know the difference between the trip and the insurable cost to get your total trip cost. If there are chances of cancellation, or you have a desire to add specific benefits to your policy, make sure you pay extra for all those prepaid, non-refundable expenses.
If you have other queries related to the calculation of travel insurance cost, let us know in the comment section, we will gladly help you with it.