Worked examples / Protection

Trip cancellation cover

Cover on a $1,200 trip you cannot get refunded. A 1 in 20 chance that something stops you going.

Worth it

On average it pays back more than it costs.

You pay$45for certain

You get back$60on average: 5% of $1,200

For every $1 you pay, you get back $1.33 on average.
The price would be fair if the chance were 3.8%. You put 5%.
A $1,200 bill is more than the $500 you said you could handle.

Put in your own numbers

This is a worked example with illustrative figures, not data about any real person or company. Change any of them in the calculator and the answer changes with them.

How this answer was worked out

You pay	$45
Chance x payout	5% x $1,200 = $60
Back per $1 paid	$1.33
Break-even chance	$45 / $1,200 = 3.8%
Costs more than it returns by	-$15

Every formula is written out on the formulas page.

What the calculator asks you

Price of the cover
Chance you have to cancel
What you would lose without it
A surprise bill you could handle

Open the calculator

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How this answer was worked out

What the calculator asks you

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