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Travel Insurance is whether a travel policy's cancellation limit covers the share of a trip cost exposed to covered cancellation reasons. Travel insurance is a risk-transfer decision made before a trip. A policy may cover cancellation, interruption, medical treatment, baggage, or assistance, but each benefit has its own wording and limit. This page focuses on one practical check: compare the selected share of the trip cost with the policy limit, then view the premium as a percentage of the trip price.
Enter the total trip cost, the cancellation coverage limit, the percentage of the trip cost that would be exposed to the covered cancellation reasons you are considering, and the policy premium. The percentage is not a probability that cancellation will happen; it represents the portion of the cost you want this simplified check to test. For broader household context, see Health Insurance Calculator; the assumptions there are different, so do not combine the two results without checking their time period and scope.
A cancellation limit is the maximum payable under that section, subject to eligible reasons and evidence. An excess is deducted from a claim. A premium is the price of the policy, not the amount available for reimbursement. Medical cover, supplier failure, travel disruption, baggage, and cancellation may have separate limits, exclusions, and definitions. The related Emergency Fund Calculator page is useful when this distinction affects a household budget, while Premium Comparison Calculator covers the next comparison boundary.
Insurance arithmetic is only as reliable as its boundary. Record whether a number is a premium, eligible claim amount, allowed amount, deductible, fixed copay, coinsurance share, limit, or maximum. Keep the policy year and the currency beside the result. A clean record makes it easier to challenge a surprising claim and to repeat a comparison when the policy renews.
Do not enter a billed charge when the plan uses a negotiated or allowed amount unless you deliberately want to model the higher charge. If a field does not match the policy wording, pause and ask the insurer or a qualified adviser rather than forcing a value into the nearest-looking box.
Covered cancellation exposure = trip cost × covered-reason percentage. Uncovered exposure = max(0, covered cancellation exposure − policy limit). Premium ratio = policy premium ÷ trip cost × 100.
For a £3,000 trip, a 100% covered-reason assumption creates £3,000 of cancellation exposure. A £3,000 limit passes this narrow adequacy check. A £180 premium is 6% of the trip cost, within the often-used 4–10% planning reference, but the percentage says nothing about claim acceptance.
This calculator does not estimate medical risk, evacuation, repatriation, missed departure, baggage loss, supplier insolvency, exchange-rate movement, or the probability of cancellation. It also does not model a family policy's traveller limits. Those are separate questions that need the policy schedule and destination guidance. This is why the calculator keeps its inputs visible instead of presenting a single unexplained “insurance cost” number. The output is a transparent scenario that can be audited, not a claim adjudication or a policy quote.
When a policy has more than one cost-sharing stage, calculate in order: identify the covered amount, apply any deductible that remains, apply a fixed copay or percentage where the schedule requires it, then check the relevant limit or maximum. Reversing that order can make a patient share look artificially small or make a coverage limit appear larger than it is.
A zero uncovered exposure means the numeric limit is at least as large as the selected exposure. It does not mean every cancellation is covered. Read the covered reasons, evidence requirements, supplier refunds, exclusions for known events, and the treatment of non-refundable deposits.
Test the most expensive non-refundable parts of the booking, not only the headline package price. Repeat the check after flights, hotels, excursions, or deposits are added. If a policy limit is smaller than the exposure, decide whether the gap is acceptable cash risk or whether another policy is needed.
A result that looks favourable under one scenario can change when usage, renewal pricing, family composition, provider network, or an exclusion changes. Test the variable you are least certain about first. For a comparison, keep the scenario constant across every plan; for a protection decision, compare the likely cash exposure with the amount you could access without selling an asset or missing a bill.
Travel insurance is governed by policy wording and jurisdiction. Destination entry rules, pre-existing medical conditions, age, activities, insolvency, strikes, warnings, and the timing of purchase can affect cover. This page is an educational adequacy check, not a claim decision.
Travel insurance is governed by policy wording and jurisdiction. Destination entry rules, pre-existing medical conditions, age, activities, insolvency, strikes, warnings, and the timing of purchase can affect cover. This page is an educational adequacy check, not a claim decision. This calculator is general educational information. It is not insurance, tax, legal, medical, veterinary, travel, or financial advice; it cannot confirm eligibility or guarantee reimbursement. Read the current contract and use the responsible insurer, authority, clinician, veterinarian, travel provider, or qualified adviser for consequential decisions.