Example Data Table
| Scenario | Trip Cost | Non-refundable | Coverage % | Policy Limit | Travelers | Estimated Premium Total |
|---|---|---|---|---|---|---|
| Domestic, shoulder season | USD 1,200 | USD 720 | 100% | USD 10,000 | 1 | USD 88.10 |
| Family holiday, low risk | USD 2,800 | USD 1,960 | 100% | USD 20,000 | 4 | USD 315.40 |
| High risk + CFAR + cruise | USD 3,500 | USD 2,800 | 100% | USD 25,000 | 2 | USD 548.20 |
Cost structure and insured base
Trip cancellation protection is usually priced on the portion you might actually lose. If your trip costs 2,500 and 70% is non-refundable, the insurable base is 1,750 per traveler. With 100% coverage and a 100 deductible, the modeled net reimbursement becomes 1,650. This calculator keeps that chain visible so you can verify every step clearly. It also helps separate refundable payments from true financial exposure.
Rate drivers in practical ranges
The modeled rate starts near 5% and then adjusts for age, timing, duration, and destination risk. For example, booking within 7 days of departure can add about 2 points, while low-risk destinations can subtract about 0.6 points. A premium plan can add about 2 points. Add-ons contribute both a small rate increase and a fixed cost.
Limits, deductibles, and “real” coverage
Policy limits cap the covered amount even if the non-refundable base is higher. If a traveler has 8,000 non-refundable costs but a 5,000 limit, the calculator caps covered value at 5,000 before subtracting the deductible. This prevents optimistic reimbursements and makes scenario comparisons fair across high-cost trips. Deductibles can meaningfully change break-even results on smaller trips.
Fees, taxes, and multi-traveler effects
Many quotes include per-traveler fees and possible premium taxes. The calculator allows an admin fee and a tax percentage so totals match your market. A small group multiplier models typical multi-traveler discounts. For two travelers, the sample multiplier is 0.97; for four or more, 0.93, helping you test family or group bookings.
Break-even probability and decision support
Beyond price, the calculator estimates a break-even cancellation probability: premium total divided by expected reimbursement total. If the break-even is 12%, you would need roughly a 12% chance of a covered cancellation for expected value to match premium. Use the “Value vs premium” graph to see when EV crosses the premium line for planning.
FAQs
Does this calculator give exact insurer pricing?
No. It provides a transparent estimate using configurable assumptions. Insurers may price differently based on underwriting, destination advisories, medical history, and policy wording. Use it for planning and comparison.
Should I enter total trip cost or only non-refundable costs?
Enter total trip cost if you know the non-refundable percentage. If you already know the exact non-refundable amount, enable the absolute override. That usually produces more reliable coverage estimates.
What does the policy limit change?
The policy limit caps the covered amount per traveler. Even if your non-refundable costs are higher, reimbursements are modeled up to that cap. It helps you avoid overestimating payouts on expensive itineraries.
How is CFAR handled here?
CFAR increases the modeled premium and applies an effective reimbursement cap, commonly around 75%. Your actual benefit percentage depends on the product and the purchase window, so confirm with the insurer.
What does break-even probability mean?
It is the approximate cancellation probability where expected reimbursement equals the premium. If your personal risk feels lower than break-even, insurance may be mainly about peace of mind rather than expected value.
Can I export my inputs and outputs?
Yes. Use the Download CSV button for a key-value export and Download PDF for a simple one-page summary. These exports reflect the latest calculated results shown on the page.
Formula Used
- NonRefundable = (override) OR TripCost × NonRefundable%
- CoveredRaw = NonRefundable × Coverage%
- Covered = min(PolicyLimit, CoveredRaw)
- NetReimbursement = max(0, Covered − Deductible)
- Rate = BaseRate + Factors + AddOnRate
- PremiumPerTraveler = max(MinPremium, Covered × Rate + AddOnFixed + AdminFee)
- TotalPremium = PremiumPerTraveler × Travelers × GroupMultiplier × (1 + Tax%)
How to Use This Calculator
- Enter trip cost and non-refundable values.
- Pick coverage percent, deductible, and policy limit.
- Select plan, risk tier, region, season, and trip type.
- Enable add-ons and trip flags as needed.
- Click Calculate to view results and graph.
- Download CSV or PDF to keep a copy.