When running a travel insurance quote online, you’ll be asked for your trip cost. But what does that mean and how much should you insure under your travel insurance policy? According to the experts at Yonder Travel Insurance, trip cost means the total nonrefundable amount associated with your trip, according to a news release.
Check out the categories of expenses below so you can better understand how to calculate your trip cost for travel insurance and possibly save money by following these tips!
What are Nonrefundable Trip Costs?
Nonrefundable trip costs are the amounts that you would not get back if you had to cancel your trip at the last minute. For example, hotel or vacation rental costs subject to cancellation penalties, prepaid tours or excursions, and nonrefundable airfare are considered insurable trip expenses.
“Think about it like this: You cancel your trip the week of your departure. What expenses would you lose completely because of that? That is the amount you should insure under your policy,” says Terry Boynton, co-founder, and president of Yonder.
Can You Insure Reward Points or Miles?
Many travelers book their flights, rental cars, or hotels with reward points or miles, which is a great way to save money on travel. Unfortunately, these values can’t be insured. On the bright side, travel insurance is priced based on trip costs. Leaving out these amounts from your trip cost could keep your premium low and help you save money on your travel insurance premium.
What Trip Expenses Should I Leave Out?
You may not need to insure all your trip expenses! By leaving out the following types of expenses, you’ll save money on your travel insurance premium and prevent over-insuring your trip.
- Refundable trip expenses
- Trip expenses you may use as a future travel credit
- Anything you won’t be paying before your departure date
“The price of travel insurance is mainly calculated by the age of the traveler and the trip cost amount. By leaving out these trip expenses, you could save quite a bit of money on your travel insurance premium,” Boynton says.
Source: Yonder Travel Insurance