Is Travel Insurance Still Relevant?

Wait, What?, The pandemic is not covered?

Since COVID19 there’s a big question on the need for Travel Insurance, especially since a pandemic was not a covered reason. Many were left scratching their head and asking the questions, “Why did I buy Travel Insurance?” and “Should I buy it in the future?”

To answer the first question, you bought travel insurance to protect your investment, ensure your experience from start to finish and for your health. Yes, 1/3 of those reasons did not apply if the reason for the cancellation was due to the pandemic, your investment was not protected.

The second question, “Should I buy it in the future?” I still say YES! And, here’s why.

  • There is still a long list of covered reasons that ARE covered for cancellation.
  • The ensure your travel experience or peace of mind coverage is also a long list like delayed or lost baggage, trip delay, and trip interruption.
  • Health insurance is a huge part and can save you tens of thousands of dollars. It includes doctor visits, hospitalization, medical evacuation, medication, and other medical-related occurrences.

Another thing to remember is that travel insurance policies before 911 did not include acts of Terrorism and now many do. Therefore, future policies could include pandemic. Also, if someone had COVID-19 and could not travel, they had a covered reason because it fell under the “I’m sick and cannot travel” vs. “I don’t want to travel or even my plans have been canceled due to COVID-19. This will also apply if you are at the destination and become ill, require hospitalization or you incur additional expenses because you, your travel companion, or a family member is ill.

Many are now asking about CFAR insurance or Cancel For Any Reason insurance. There are three things to know if you are considering CFAR insurance.

  1. It is time-sensitive and must be purchased within a limited time after you purchase your trip. This time frame will vary by provider.
  2. It’s more expensive than regular “Travel Insurance”, about 40% more.
  3. You aren’t reimbursed 100% of your trip cost. Reimbursement is about 60 – 70% of the total trip cost, which varies by company.

It is especially important that you review the travel insurance policy for inclusions, and you can ask the insurance company questions. You can also use squaremouth.com or insuremytrip.comto compare policy’s by company and your travel advisor can assist you as well.

Yours truly,

Ja’Vonne Harley, The Traveling Culturati

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