Some travel insurance policies now cover COVID-19 related cancellations
CHICAGO, ILLINOIS - OCTOBER 19: A Transportation Security Administration (TSA) agent screens an airline passenger at O'Hare International Airport on October 19, 2020 in Chicago, Illinois. Yesterday the TSA reported that it had screened over 1 million
HOUSTON - More travel insurance companies are now offering policies that cover trip cancellations or interruptions for COVID-19, hoping to get people traveling again.
Insure My Trip says its new survey reveals 90 percent of travel insurance customers are now considering "Cancel For Any Reason" policies in case COVID-19 derails their plans.
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The insurance comparison site says more travel insurance companies are covering COVID-19 related cancellations through what's called Cancel For Any Reason, or a CFAR policy. (CFAR) typically refunds 50 percent to 75 percent of your costs if you have to cancel your plans up to 48 hours before departure.
"We recommend Cancel For Any Reason because that takes your traditional trip insurance policy, which had your medical if you were sick on a trip and had evacuation type of coverage. This adds Cancel For Any Reason, so it really gives you a comprehensive policy that covers all your needs," said Cheryl Golden, marketing director for Insure My Trip.
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Insure My Trip now not only can help you find travel policies covering your needs and quote their prices but has added a feature to show you policies also covering COVID-19 related events. You simply type in the destination, dates, and some details about your trip.
"You'll see all the plans that are available for where you're going at that time. Then you'll have recommendations if you're interested in getting coverage for COVID-19," said Golden.
Other types of travel insurance policies you can consider include trip cancellation or trip interruption, but may or may not specify COVID-19.
"Trip interruption, when you're on your trip, if there's a covered reason, you'd be able to leave your trip because of this," and get a partial refund, she explained.
Some policies offer quarantine coverage for when you must cancel a trip due to a quarantine requirement. But note that cancellation for a government stay-home order is not covered, unless you have a Cancel For Any Reason policy.
Many travel insurance policies also offer medical coverage for hospital or doctor visits on a trip and emergency evacuation to bring you back for treatment. And some offer financial default coverage, which can be helpful in these uncertain economic times.
"Airlines, tour operators, that type of agency, what happens is if they go out of business? You can be covered for that piece of the trip," said Golden.
Travel insurance usually costs 4 percent to 8 percent of your overall trip cost.
Cancel For Any Reason coverage will range from 10 percent to 15 percent of the trip price. But it can buy you peace of mind.