A simple way to calculate trip cost for your travel insurance policy

05.28.24 by Travelex Insurance
Image credit: Getty Images
Calculating your travel insurance trip cost for a quote doesn't have to be complicated. Here's a simplified guide to help you figure it out.

Are you in the process of getting a Travelex travel insurance quote for your upcoming trip? During the quote process, we’ll ask you to share your trip cost. But why does our Travelex team need to know your trip cost? And how do you calculate your trip cost?

Telling us your total trip cost is essential to getting the right coverage for your vacation. We’re here to help safeguard the prepaid nonrefundable payments you’ve made or will be making for your vacation, so we need to know how much you’ll be spending to suggest what coverage you need and ensure your travel insurance premium is accurate.

Calculating your trip cost can be easier than you think. This guide walks you through the simple steps you need to take, including what to count and what to skip. Because whether it's your flight, hotel stay, or once-in-a-lifetime tour, getting a clear picture of your trip's total cost is essential for getting an insurance quote that’s just right for your vacation.

Key takeaway: You only need to include prepaid nonrefundable costs — including prepaid deposits — in your trip cost. You don’t need to include any cost that’s refundable. Also, remember to include any cancellation penalties you'd have. For example, if the hotel you booked charges a cancellation fee, add that amount to your trip cost.

5 prepaid nonrefundable expenses to include when you calculate your trip cost:

1. Your accommodations.

2. Your airfare or cruise tickets.

3. Your in-destination transportation.

4. Your tours, events, and activities.

5. Your meal packages or dining experiences.

1. Add your prepaid, nonrefundable accommodation expenses

Did you book an Airbnb cabin in the mountains in Montana or an overwater bungalow in the Maldives? Wherever you’ve decided to stay, if you paid in advance and can’t get a refund, add the total amount to your travel insurance trip cost.

Remember seeing “free cancellation” as a feature when searching for places to stay? If you booked an accommodation that lets you cancel at no cost, you don’t need to include the expense when you calculate your trip cost (because you don’t need to get coverage for an expense you can get back elsewhere). Make sure to check whether or not your accommodation booking includes free cancellation before adding it to your travel insurance trip cost.

2. Add your prepaid, nonrefundable flight or cruise tickets

Whether you’re embarking on a transatlantic cruise to explore Europe or flying to Thailand to visit an elephant sanctuary, if your tickets are nonrefundable and you’ve already paid, add the expense to your travel insurance trip cost.

It's crucial to include the cost of your flights and cruises when you're working out how much to insure your trip for. These big-ticket items often come with hefty price tags and are usually nonrefundable, so they should be added when you calculate your trip cost.

After you calculate your trip cost, always double-check the policy to see the full terms and conditions for flights and cruise coverage to make sure your travel insurance suits your trip plans.

3. Add your prepaid, nonrefundable transportation bookings

Want to enjoy the freedom of exploring Florida’s beaches in a rental car? Or maybe you’re prepaying for Eurail train tickets so you can stop in multiple European countries. If you paid in advance for transportation you’ll enjoy once you’ve arrived, add those nonrefundable expenses to your travel insurance trip cost.

4. Add your prepaid, nonrefundable tours, events, and activities

Did you book a snorkeling cruise excursion in the Bahamas or a tour of the Colosseum in Rome? Or perhaps you bought tickets to a professional soccer game in Madrid or concert in London. You’ve likely planned some fun activities for your trip, and if you already paid and can’t get a refund, add these bookings to your travel insurance trip cost when getting a quote.

Tours and events are often nonrefundable, which means if bad weather ruins your snorkeling trip or you’re too sick to attend the concert you’re traveling for, you won’t get your purchase back. So, make a list of all your prepaid, nonrefundable activity expenses and include them when you calculate your trip cost.

5. Add your prepaid, nonrefundable meal packages and dining experiences

Buying food and beverage packages can be a great way to cruise on a budget or save money at a resort. But if you buy nonrefundable packages and suddenly can’t go on your trip, you’ll be paying for packages you didn’t use. So, it’s important to add meal packages to your travel insurance trip cost.

Thinking about trying a unique dining experience during your getaway? Whether you booked a traditional Japanese kaiseki dinner in Kyoto or a Greek feast on Rhenia island, if your payment is nonrefundable, add it to the list when you calculate your trip cost.

You’re ready to complete your travel insurance quote!

Now that you know how to calculate trip cost for your upcoming vacation, it’s time to finish protecting it. Remember, if a trip expense is paid for ahead of time and you can't get the money back if your travel plans change, it should go into your trip cost calculation. This way, you know you have the right coverage and can feel more confident as you look forward to your travel experiences.

Ready to protect your trip?

With one of our Travelex plans, you’ll keep award-winning customer service by your side. Get a quote now.


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