As more Americans have become vaccinated and better safeguarded from contracting COVID-19, it should come as no surprise that travel is picking back up. Airports are getting busy, hotels are booking up and vehicles are being rented – a sign that Americans are eager to get back out into the world to vacation and explore. But there’s one thing that’s particularly different from pre-pandemic travel: The travel insurance business is going through the roof.
There are a few reasons for the increase in travel insurance. One, you might recall last year how many Americans didn’t recoup any or all of the money they had previously put toward both domestic and international vacations when COVID shutdowns or border restrictions canceled their plans. Then there’s the fact that the more contagious Delta variant is infecting fully vaccinated people more often, and while breakthrough patients are well protected from severe disease, they still have to quarantine. There are also the challenges of border restrictions and testing requirements that travelers may have to navigate. Travel insurance can help provide a safety net for all of the aforementioned obstacles.
Is Travel Insurance Worth it?
Travel insurance usually costs anywhere from 4 to 10 percent of the total cost of the trip you’re taking. For instance, a $5,000 trip could cost anywhere from $200 to $500 to insure. Prices are often based on age and the type of coverage that is selected.
Conventional travel insurance policies, however, did not provide protection during a pandemic. Today’s policies have been adjusted to include such coverage. For instance, many of the policies that travelers shop for involve COVID medical coverage and COVID cancelation coverage. More expensive policies even include a “cancel for any reason” provision, meaning that you can bail on your trip for any reason and receive a full reimbursement. These policies might cost as much as 30 percent of the trip, however.
When deciding whether travel insurance is worth it, it’s important to carefully assess each policy you’re considering to see just what is covered and what you may still be on the hook for. Additionally, the cost of your trip should play a role in your decision. Heading out of town for a long weekend may not be as important of a trip to insure as a two-week European getaway, for example.
Tips for Choosing Travel Insurance
So how should you go about shopping for travel insurance? Here’s a look at some tips:
- Shop around: Third-party vendors typically offer more comprehensive policies than your credit card benefits, for example.
- Know the policy: Don’t just select the cheapest policy, make sure that it includes the coverage you want and/or need.
- Do you need supplemental coverage? If you’re not happy with the coverage limits of a policy, know that you can often purchase supplemental coverage as well.
