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Do I Have To Travel Insure My Entire Trip?

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When it comes to understanding trip insurance, one of the most-asked questions is how much of your trip can or should be insured. Do I have to insure my entire trip?

Here's your answer

Before embarking on a big vacation or important business trip, it's important to plan your trip insurance needs carefully. Knowing the lingo and understanding your options before you make the purchase is key, so here's your tip-sheet for trip insurance and trip cost. It's a quick read, but you'll want to know this valuable information before insuring your next big trip.

First, Understand What "Trip Cost" Really Means

The travel insurance industry has its own special lingo, so make sure you're familiar with the terms before going in. "Trip Cost" sounds straightforward enough, but in actuality it has a narrowly defined meaning in the insurance world.

For insurance purposes, "trip cost" is the dollar figure assigned to the insurable portion of your total outlay for the trip. In other words, it's the figure the insurer will use to calculate the price of your policy. Remember, the insurer only cares about what they will be covering, and nothing else.

Therefore, you will need to take the total cost of the trip, and then strip away everything that won't be insured to arrive at "trip cost". And of course the insurer has strict rules on what can and can't be included in "trip cost" (more on that below).

What Can be Included in "Trip Cost"?

Any travel arrangement that's been prepaid and which is non-refundable may be included in your "trip cost". This most commonly includes your flight, if your tickets are non-refundable. Other common trip cost items are:

  • Your hotel arrangements (again, only if you booked a non-refundable room)
  • A non-refundable cruise ticket
  • Any non-refundable excursions you paid for in advance

You do have leeway in what you would like to include in your trip cost, however, and that brings us around to the original question here: Do I have to insure my entire trip?

Do I Have to Insure My Entire Trip?

The quick-and-easy answer here is: no. You may cherry-pick from your list of non-refundable, prepaid trip costs to create your travel insurance policy. That gives you the freedom to choose some or all of your trip cost when putting together your policy. Of course there's no law saying you have to insure your trip at all, so you could theoretically choose to insure nothing at all.

The flexibility to choose what's insured goes away, however, if you want to enjoy certain benefits. Here are those two exceptions:

  • Cancel for Any Reason Trip Insurance. If you want a Cancel for Any Reason policy, you will be required to insure 100% of your "trip cost" (that is, everything that's pre-paid and non-refundable).
  • Pre-existing Medical Condition Cover. Same rule applies here: you must insure 100% of your "trip cost" for this type of cover.

Remember, whatever amount of cover you decide you need, it's always important to ask lots of questions before signing on the dotted line. Here at AardvarkCompare.com, we've got answers to all your travel insurance questions. You can also get a great value quote on our website and choose from over 40 policies.

Safe travels.

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