Travel Insurance, A No-Brainer

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Pre Pandemic Buying Habits

Before Covid-19, about 1 in 5 people traveling for leisure purchased travel insurance according to TravelInsurance.com.  Today, almost half of those very same people are likely to purchase coverage.  So what caused this change?  Again, I defer to TravelInsurance.com:

  • 59 million Americans lost money spent on travel due to the pandemic
  • Only 30 percent of Americans who canceled travel plans will or have received a refund

Given these numbers, people discovered that travel insurance should not be optional.  In fact, this most recent pandemic (Covid-19) has made the need for travel insurance A No-Brainer…..

Standard Travel Insurance
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A typical travel insurance policy will have coverage for a traveler’s main concerns, including trip cancellations, medical emergencies, travel delays, and lost luggage. Most policies are built to be comprehensive to protect travelers from a variety of events that may cause a financial loss before or during their trip.  For many travelers, the number one reason to buy travel insurance is for financial protection in case they can’t take their trip. With Trip Cancellation coverage, you can protect all of your prepaid and non-refundable trip expenses.  The most common covered reasons include:

  • Illness, injury, or death of you, a traveling companion or a family member
  • Severe weather preventing you from reaching your destination
  • A terrorist attack at your destination

While Trip Cancellation covers traveler’s most common concerns, it doesn’t cover everything. If you are concerned that the Trip Cancellation benefit doesn’t have enough coverage, the Cancel For Any Reason upgrade may be a good option.

Cancel For Any Reason

Cancel For Any Reason is an optional upgrade that provides partial reimbursement for prepaid and non-refundable trip payments if a trip is canceled for a reason not otherwise covered by a policy.

Cancel For Any Reason is a time-sensitive upgrade. Most policies with Cancel For Any Reason can only be purchased within 14 – 21 days of the first payment towards the trip. This benefit requires travelers to insure their entire trip cost, and will typically increase a policy’s premium significantly.

To be covered under the Cancel For Any Reason benefit, a traveler must cancel their trip in its entirety at least 2-3 days before their scheduled departure date. Depending on the policy, this benefit reimburses 50% or 75% of the trip cost, and requires the traveler to insure 100% of their prepaid and non-refundable trip costs.

Please be aware that coverage and eligibility requirements for this benefit differ by policy.

What May Not Be Covered

A travel insurance policy with all possible upgrades will not cover everything.  A list of situations that may not be covered is as follows:

  • Taking part in extreme activities that involve the risk of death
  • Playing professional sports
  • Learning to fly a plane
  • Medical travel
  • Dental treatment
  • Pregnancy

Final Thoughts

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The fight with Covid-19 is far from being over.  But, the desire to travel again is growing daily.  Expedia’s 2022 Travel Trends Report shows that 68% of Americans plan to make their next trip the GOAT (Greatest of All Trips).  Now more than ever before, consumers who plan to travel should be careful to protect their investment with travel insurance…..  A No-Brainer…

I look forward to reading your comments and don’t forget to share this article with friends and family.

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