Won't it be great after you've picked up the phone and got your questions answered today? Then you can just smile that big smile of satisfaction, sigh to yourself on the inside, and think, ... 'This is the best trip planning decision I've ever made.'
What's Included in Prepaid, Non-refundable Trip Costs?
Your trip cost is your total prepaid, non-refundable costs. The best way to figure out this amount is if you got hit by a cement truck just before you left on your trip, how much money would you lose by cancelling your trip?
Here are some common non-refundable costs you will forfeit if you were forced to cancel your trip at the last minute:
All payments, including deposits, towards your cruise, tour, hotel, etc
Pre-arranged transportation to the airport (ever tried getting to JFK?)
Tuition for a class you're taking (for example - a cooking class in France)
The rent on the property you're staying in (for example - the Italian villa or Florida condo). It doesn't matter if you are renting from a private party or a business. What does matter is that the rental agreement must have a penalty schedule showing your cancellation penalties.
Theater tickets, event tickets, Disneyworld passes, etc.
More about airline tickets:Changeable does not equal refundable. Refundable means that if you cancel you will get 100% of your money back.
Q. Can you just divide your total trip cost by the number of travelers and use the average trip cost to price the travel insurance and still be fully covered for all prepaid trip costs if you have to make a claim?
A. With two exceptions, CSA Freestyle & Freestyle Luxe, the answer is "No". All other plans use a per person trip cost to price their plans. If you under-insure your trip costs you will end up getting a lot less than you expect when you have a claim. Plus, you will probably unintentionally void your Pre-Existing Medical Conditions and Cancel For Any Reason coverage.
Adding to the confusion, CSA Freestyle & CSA Freestyle Luxe plans let you buy their plan based on the average per person trip cost (Total Trip cost divided by the number of travelers) even though they use the per person trip costs to arrive at their price.
Q. Why is it important to know changeable does not equal refundable?
A. Because if you are thinking you'll just insure the change fee and not the entire cost you paid for the ticket, you will forfeit any plan benefits associated with having to insure the full non-refundable prepaid trip cost. The main benefits are covering Pre-Existing Medical Conditions and Cancel For Any Reason.
With most plans, if they say that you must insure any non-refundable travel arrangements that are subject to penalties they mean just that: non-refundable or subject to penalties. It makes no difference even if the ticket is changeable with a fee. It's still non-refundable and it must be insured.
Q. Are Frequent Flyer Miles, Credit Card Rewards and Other Free Travel Awards Covered?
Q. Do Cruise Line Port Charges or Taxes need to be insured?
A. I myself (Steve) started a thread on Cruise Critic in January 2010 asking specifically if cruise lines' Port Charges or Taxes are refundable. I received dozens of responses. The majority were "No, they aren't refundable". However, I also got responses saying "Yes, they are refundable". It seems to vary from cruise line to cruise line.
So, should you insure Port Charges or Taxes? I don't know. If you choose not to insure Port Charges or Taxes, I suggest you get, in writing, from the cruise line that they are fully refundable if you cancel at the last minute. Your risk is that if you don't insure the full non-refundable prepaid trip cost, you will forfeit any plan benefits associated with having to insure the full non-refundable prepaid trip cost. The main benefits are covering Pre-Existing Medical Conditions and Cancel For Any Reason.
Q. Are all First or Business Class tickets refundable?
A. No, they used to be fully refundable, but now many have a non-refundable fee and you get the rest of the money back if you cancel the ticket. In this case, you are just obligated to insure the non-refundable fee. See Steve's blog post "How Do I Insure Business Class Airline Tickets?" for a more detailed discussion.
Here's what are typically not prepaid, nor non-refundable trip costs:
Lodging costs that you pay after you arrive
The cost of meals
Day trips, excursions and other side trips you arrange after your trip's departure
The cost of souvenirs, gifts or other items you expect to buy on your trip
With 5 exceptions (CSA Freestyle & Freestyle Luxe, Global Alert Preferred & Plus and TravelSafe), you have to insure at least your trip's full prepaid, non-refundable cost (you can't round it down). If you don't know your final trip cost, estimate it high to be safe. You can always lower it to the correct trip cost prior to your departure date. and
The person with the medical condition must be medically stable when you get your insurance and
You must get your travel insurance within the first 14, 15, 21 or 30 days after your first trip payment date or by your final trip payment date and
You have to insure your trip's full length
If you're flying, taking a tour, cruise, etc. your initial trip deposit date is the first date you made any payment - including a refundable deposit.
If you're driving, you can establish an initial trip deposit date by prepaying a trip cost (ie - hotel reservation) before you leave. You have to actually prepay it - booking a room on Priceline, Expedia or Orbitz is best.
Ready to Purchase? It's easy and safe to purchase online or over the phone - just call Deanna, Becky, Kim or Steve at (888) 407-3854 or (816) 282-6858.
PPS - Even though TripInsuranceStore.com is the world's most informative travel insurance website, you are still responsible to know the coverage terms, conditions, limitations, and exclusions of your plan. No comments or explanations confirm or deny coverage. You need to refer to each plan's policy wording. Click here to get each plan's complete details of coverage.