There are many aspects to planning a trip, whether it’s domestic or international. Budgeting is one of those things you either love doing or dread and want to pass on to someone else to figure out. Although we can’t help you do the gritty work of nailing down all your trip expenses, we can at least help you figure out what numbers to look for and add up!
What Is Total Trip Cost?
The “Total Trip Cost” requested in a travel insurance quote tool would be any non refundable, prepaid deposits or payments made towards your trip you’d like insured in case you have to cancel or return home early for an unforeseen, covered event. Generally, your total trip cost includes expenses related to airline tickets, cruise costs, hotel/accommodations, tour costs, etc.
Finding out your total trip cost is one of the most important areas to finalize because it affects your travel insurance coverage in a few different ways. First, calculating your trip cost will help you get the right travel insurance plan. Another thing to keep in mind, is that the total trip cost is the amount you want to insure on your trip. The best way to be fully insured at the most affordable price is to have an accurate calculation of how much your trip is going to cost you. Once you’ve come up with a number for everything, the next step is to compare several travel insurance plans that will cover your trip.
Here are the steps to calculate your trip cost for your travel insurance.
- How To Calculate Total Trip Cost For Travel Insurance
- What Expenses to Include When Calculating Total Trip Cost
- Expenses to NOT Include When Calculating Total Trip Cost
- After Calculating Your Total Trip Cost
Let’s get started!
How To Calculate Total Trip Cost For Travel Insurance
It could be a tedious process, but in the end you’ll have confidence about how much travel insurance coverage you need for your trip. Your budget for each trip will vary according to things like your destination, accommodations, and activities.
Before we start tallying, you’ll need to know what expenses are able to be insured and what can’t be insured. Things you have prepaid or made deposits towards or any other non-refundable costs costs are what you need to focus on. You’ve probably made a large investment in these non-refundable costs and want to protect them in the rare chance something happened. Trust us, it’s easier to figure out than you might be thinking. Keep reading for the breakdown of how to add up your trip cost when looking to purchase travel insurance coverage.
What Expenses to Include When Calculating Total Trip Cost
Majority of the time, you’ll pay for your airline tickets at the time of booking. This often means that expense is non-refundable. However, if your airfare is refundable, then don’t include this amount in your total trip cost. When traveling, especially internationally, airfare can be the bulk of your expenses. Because of this, it’s more important than ever to insure this large investment and buy travel insurance.
PRO TIP: If booking your flight with frequent flyer miles or points, this amount should not be insured under your travel insurance policy. Instead, insure any taxes or fees (the cash amount) incurred with the airline ticket purchase.
The next largest part of your trip cost might be spent on accommodations. Any non-refundable accommodations such as prepaid hotels and Airbnbs should be included, even if the only thing you’ve paid for is the deposit or fees. If you’re traveling with multiple people are are splitting the cost of accommodations, you’ll want to insure the portion you paid for, rather than the full cost.
When considering your trip cost, you’ll want to include any nonrefundable expenses towards activities you’ve prepaid. For example, fees for art museums, amusement parks, rentals, or tour you’ve paid for in advance of travel that are non-refundable should be added to the total.
PRO TIP: If there are excursions or experiences you don’t have to pay for in advance, be sure to leave those out of your calculations.
Expenses to Not Include When Calculating Total Trip Cost
There are some expenses you’ll want to leave out of your total trip cost. For example: If you had to cancel or your trip got interrupted and you weren’t out any money for something like a tour you didn’t buy in advance, you wouldn’t need to insure that cost.
It’s typically difficult to track and budget for the exact cost of meals during your trip, which is why it can’t be added to your trip cost. The only exception is if you’re going on a cruise, then this expense is already added to the cost of your trip. When it comes to your budget though, make sure to add a bit extra for food while you travel.
Yet another hard budget to nail down is how much you’ll need for transit once you get to your destination. Because of the fluctuation and chance you’ll purchase transit tickets once in-destination, you’ll want to leave these expenses out when adding your insurable trip cost. If you’re renting a car while on your trip, see if your travel insurance policy offers coverage for rental collision damage before purchasing directly from the rental company.
This category includes unexpected costs that come up on your trip, which cannot be added to your trip cost. Because they might be random things like shopping and spa treatments, it will be tough to pinpoint the exact amount you’ll spend. However, keep a budget of how much you want to set aside for the times your forget your packed lunch or run out of sunscreen and other things that come up.
PRO TIP: Having an amount to spend on miscellaneous expenses will help you keep your wallet in check so you don’t dip into your next trip’s budget.
After Calculating Your Total Trip Cost
Don’t worry if your total trip cost isn’t final yet. If you have other payments to make towards your trip, you’ll be able to increase the trip cost on your travel insurance policy at a later time. Just make sure to change it before your departure, otherwise your full investment might not be covered. Read our other article about increasing your total trip cost and how you can do this.
Now that you have your total trip cost tallied up, your well on your way to getting the right travel insurance policy for your trip! The next step to insuring all these costs is to protect them with travel insurance. You’ll want to find a policy that works with the way you travel, so be sure to compare plans for your travel style. It never hurts to plan and prepare, especially when it comes to traveling. Make sure to check out this checklist to double-check everything is in order before your trip departure.