Buying Travel Insurance in the Era of COVID-19
Buying travel insurance in the era of COVID-19 can be confusing.
As we pointed out in this article from February, a pandemic is not a covered item in travel insurance policies.
Travel insurance covers you for something that HAS happened to you and not something that you fear might happen to you.
For example, if you were to contract COVID-19 while on a trip, that would be a covered event. But again, canceling your trip for fear of contracting the virus is not covered.
Now that we understand that travel insurance companies do not cover pandemics, let’s take a peek at a few other important considerations:
- Travel Supplier Default – if you are concerned that your cruise line or travel provider might go out of business, then having supplier default coverage would be important. This coverage provides a cash refund to you if your travel supplier goes out of business. Generally speaking, to obtain this coverage, two things must happen:
- You must purchase the policy within 14-days of your first deposit
- And, the supplier must be on the travel insurance company’s “covered list”. These lists are usually published at least monthly and available on the insurer’s website.
- Travel Supplier “Risk-Free” Bookings – prior to the coronavirus mess, travelers would purchase travel insurance primarily to insure their ability to go on the trip. If you broke your leg and your doctor says that you cannot travel, you could file a claim for non-refundable trip costs and get a cash refund. In the era of COVID-19, nearly every cruise line and travel supplier offers some version of a “risk-free” booking. If you find yourself worried about completing your travel plans, then a risk-free booking will allow you to revise your booking to a later date. And sometimes, if the travel supplier cancels the journey, a cash refund is available. Therefore, some would reason, you don’t need the expensive cancelation insurance. And while this might be true, it’s worth a conversation with your travel advisor.
- Medical-Only Travel Insurance – if you don’t feel that you need the expense of a full travel insurance policy with a cancelation clause, we highly recommend that you at least purchase a medical-only travel insurance policy. These policies are inexpensive and far better than any “free” travel insurance that might come with a credit card. The differences are quite profound and again worthy of a conversation with your trusted travel advisor.
While we don’t have the ability to provide travel insurance quotes to the world, we hope that you found value in this article. And if so, perhaps you would consider becoming a client of our travel agency. Just click the about us section to learn more. And to see all of the travel opportunities we have available, CLICK HERE.
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