What counts as "trip cost," and why it decides your claim
When you buy travel insurance, you are asked to enter your trip cost. It sounds simple, but it is the most important number on the application, because your cancellation and interruption coverage are paid against it. Insure too little and you leave money exposed. Insure refundable items and you pay for coverage you cannot use. Here is how to get it right.
Include your prepaid, nonrefundable costs
Trip cost means the money you have committed that you would lose if you canceled. That usually includes the cruise or tour fare, nonrefundable hotel nights, prepaid excursions, and airfare or change fees you could not recover. If losing it would hurt, it generally belongs in your trip cost.
Leave out what you would get back anyway
Fully refundable items do not need to be insured, because there is nothing to reimburse. A refundable hotel, an airfare you could cancel for a full credit, or points you would simply get back do not need to sit inside your trip cost, and including them only raises your premium.
Update it as you book
You do not have to know every cost on day one. Insure what you have committed so far, then increase your insured trip cost as you add the rest. Carriers have a process for raising it. What you cannot do is go back in time on the pre-existing condition waiver, so start the policy early with what you have and build on it.
Common questions
What should I include in trip cost?
Your prepaid, nonrefundable costs: cruise or tour fare, nonrefundable hotels, prepaid excursions, and any airfare or fees you could not recover.
Should I insure refundable airfare?
No. If you would get the money back anyway, insuring it just raises your premium without adding usable coverage.
Can I increase my trip cost later?
Yes. Insure what you have committed now and raise the insured amount as you book more. Starting early is what preserves the waiver.
The bottom line
Insure what you would lose, leave out what you would not, and update the number as the trip fills in. Get trip cost right and your claim is straightforward. Our quiz compares three plans for the trip cost you enter and recommends the one that fits.
Reviewed by Ati Jain, licensed travel insurance agent, NPN 20159563. Last reviewed June 2026.