Travel insurance can protect you from financial losses due to unforeseen events, but many end up overspending, mistakenly believing that a higher price is always better. Travel insurance comparison site, Squaremouth, reveals two things you should not include in their travel insurance quote.

Refundable trip costs

Travelers insuring the cost of their trip can expect to spend between 5-10% of their trip cost on a travel insurance policy. Therefore, the lower the trip cost, the lower the premium.

Buying Tip: Travelers should only insure the pre-paid, non-refundable trip expenses they would lose if they can't take their trip. This includes expenses such as airfare, hotel accommodations, tours, and excursions, among others. If one of your trip expenses requires a penalty to cancel, only insure that amount, rather than the full cost.

Credit card points or miles

According to Squaremouth survey data, over 20% of travelers pay for their trips with frequent flier miles or credit card points, but few know that frequent flier miles and reward points are never covered by travel insurance.

Buying Tip: While you can't insure the value of points and miles, you can insure all taxes and fees associated with their air miles or reward points. Some providers also provide coverage to re-bank or redeposit the air miles if you cancel your trip, depending on the policy.