As the coronavirus pandemic reshapes travel plans, many clients are wondering about various forms of coverage available to them. While every policy varies, most comprehensive policies cover trip cancellation, lost baggage and medical/health costs.
Some insurance providers may provide concurrent coverage with your homeowners, car or health policies; others even offer flight accident and accidental death coverage.
Cancelled Trip Coverage
Trip cancellation coverage is one of the most widely utilized types of travel insurance and covers your pre-paid expenses should you need to cancel your vacation plans due to unexpected circumstances or events. Most comprehensive policies offer trip cancellation insurance as part of their comprehensive policies. There’s typically a timeframe and you must purchase this policy prior to departure; but this protection may help cover costs in unexpected events or circumstances that arise and even cover potential bankruptcy claims from airlines, cruise ships or tour operators’s.
Some travel insurers offer “Cancel for Any Reason” policies, which are more costly but provide reimbursement without regard to why your trip has to be cancelled. They may be purchased separately or as part of a package including medical and evacuation coverage.
As you consider policy options, consider which elements of coverage are of highest priority to you. Is getting your money back for a canceled trip top of mind or more concerned with being treated or evacuated in case you contract a disease during travel?
Your best option when looking for travel insurance is using an online website that offers quotes and comparisons from multiple providers. Most often you can narrow your choices by entering information such as trip length, age of travelers and cost. Most providers also include details regarding policy coverage limits; additionally you may even find extra benefits like concierge services, restaurant recommendations or tee times as a supplementary travel product.
A quality travel insurance policy should provide protection for most of your major worries, but you’ll need to understand its limitations and exclusions as well. Most policies don’t cover claims related to alcohol or drug abuse. They may exclude travel to places with a risk of terrorism or civil unrest; and elective procedures like dental work and hair transplants might not be covered either. Finally, check whether your homeowner or renters insurance already offers some of these same coverages that travel insurance provides – otherwise you could end up paying twice for protection!
Trip Delay Coverage
Trip delay insurance reimburses travelers for expenses such as meals, accommodations and transportation while they’re delayed at an airport due to inclement weather or airline carrier delays; however there may be restrictions and exclusions in place which limit how much can be reimbursed and for how long.
Travel delay coverage typically provides both daily and annual limits, and may require proof of purchase for certain expenses. By purchasing such travel insurance prior to embarking on your journey, you can reduce frustration and out-of-pocket expenses associated with delayed flights; especially if traveling to exotic locales where high demand for accommodations or lack of local resources may create long wait times.
Travel delay coverage depends on the type of policy you buy; it could be standalone or part of a more comprehensive plan covering multiple areas like medical evacuation, trip cancellation and interruption, baggage protection etc. For example, Generali’s Standard and Preferred travel protection plans both offer trip delay coverage with either $1,000 or $3,000 maximum benefit per insured person depending on which plan they select.
Most airlines aren’t legally required to compensate travelers for flight delays, so having this type of coverage can give you peace of mind knowing you are protected in case an extended delay leads to damage of electronics or sports equipment you brought along for the journey. This benefit can especially come in handy if traveling with children and/or expensive items like electronics or sports gear that might become damaged as a result of a delay.
An average delay must last six or 12 hours before travel insurance coverage kicks in; this depends on which travel insurance plan is chosen. Travel delay coverage usually also has per-day and total limits that match up with overall policy maximum amounts.
Some travel delay policies offer trip cancellation coverage if an airline’s delay extends past 50% of your planned travel length; however, you still must make every reasonable attempt to continue your trip and document those efforts. Some insurers provide mobile apps for filing travel delay claims, making the process even simpler and more convenient.
Trip Interruption Coverage
Trip interruption coverage provides valuable protection should unforeseen medical or transportation emergencies require you to cut short your vacation for any reason, with reimbursement typically provided for unutilized accommodations, flights costs and transportation expenses. As with cancellation insurance policies, this type of cover is often included as standard coverage or can be added on for an additional premium fee.
Imagine this: two days into your week-long romantic getaway and a severe thunderstorm forces the cancellation of your flight back home, meaning that instead of enjoying all that was planned for you in terms of snorkeling, swimming and poolside relaxation your itinerary had planned, trip interruption coverage can provide reimbursement for unused accommodations and original flight costs so you can return sooner rather than later.
Trip cancellation and interruption coverage is often offered in comprehensive travel insurance plans; however, certain credit cards also provide it as an optional benefit for an extra premium. When looking into these cards with this feature, read their terms and conditions to understand exactly which parts of your journey are covered and under what circumstances any claims can be filed.
Many card plans only cover your trip costs in case of severe weather or family emergency; but some plans, known as Cancel for Any Reason (CFAR), reimburse up to 75% of unused nonrefundable payments if you must shorten or end your trip early and return home earlier than planned.
CFAR travel insurance plans tend to be more costly than other options and require that you register your trip with the State Department’s free Smart Traveler Enrollment Program before arriving in your destination country. Doing this allows the nearest embassy or consulate to know where you are, what emergency situation exists and who to reach out to in case an unanticipated emergency or natural disaster might interfere with your plans.
Some travelers opt to add baggage and personal items coverage as an additional measure to protect their possessions from becoming lost or stolen while abroad – this coverage acts as a supplement to standard homeowners/renters policies.
Medical Coverage
Many travelers purchase travel insurance to cover medical expenses while abroad if their health or life insurance does not offer adequate coverage. Medical coverage could come in handy should complications arise during pregnancy or being prevented from participating in dangerous sports activities due to disability. These policies often feature 24-hour hotlines that assist with booking flights and hotel rooms as well as finding restaurants or doctors, vaccination information or any other health concerns arise, lost luggage reimbursement as well as possibly providing compensation should your job or jury duty obligations change while abroad.
The best travel insurance policies offer flexible cancellation terms that allow you to reschedule or cancel your trip if it is interrupted due to circumstances beyond your control, such as bad weather or illness among family members. They often include extra features like concierge services that can book reservations or locate doctors as well as coverage for rental car damage; in some cases they even include provisions for lump sum payout if death occurs during your journey or you lose a limb, eyesight or speech due to medical emergencies during travel.
Before purchasing any policy, consult with your current health insurers and review your homeowner’s or auto policies to understand what coverage they provide. Often additional travel coverage will only pay for costs not covered by primary policies – for instance supplemental policies will often cover deductible costs while primary plans cover actual treatment costs.
Many supplemental plans exclude coverage for pre-existing conditions, so it is essential that you read and understand their terms carefully to make sure you are covered. Other exclusions could include extreme sports like skydiving or scuba diving – although an adventure sport supplemental policy often covers these activities. Also beware that some plans only provide coverage for limited amount of days annually so if you are frequently traveling make sure that you plan accordingly; also some supplemental policies only reimburse medical treatment in local hospitals but do not provide transportation back home via medical evacuation/ repatriation coverage on regular travel insurance policies.