Travel Insurance

What Is Travel Insurance Really and Should You Be Paying for It?

Travel Insurance During COVID
Written by Publishing Team

There’s a good chance that by the time you got vaccinated, you, the optimist, has already booked a flight or two. Now it was said that a trip might be on the horizon, and you might have a few things to think about.

I’m talking about cancellations. the fear. Literally not being able to travel due to a positive COVID test. These are all issues that could hypothetically be mitigated by travel insurance, which isn’t as much of a commitment as you might think (read: me). However, they are important in the current climate. And just in general.

Laura Haidt is the director of the travel insurance office at Brownell, the oldest luxury travel agency in North America (founded in 1887). Heidt has worked in insurance for over 20 years and is an expert on the subject of travel insurance, particularly when it comes to COVID. Not surprisingly, Heidt offers more than a few suggestions for today’s traveler. The most important one is to purchase “cancel for any reason” insurance with every booking. According to Heidt, most medical claims submitted for COVID-related causes have so far been covered, but travelers’ policies often do not include travel disruptions due to government-imposed travel restrictions.

Additionally, Haidt advises travelers to purchase insurance at the time of depositing, then “insurance as you go.” According to Heidt, most travelers wait to purchase their insurance policy until they are close to their flight. However, if you wait, you will lose the pre-existing waiver of medical issues for all immediate family members, as well as a financial default if the travel company runs into financial problems. Instead, travelers must purchase a minimum insurance policy (say, $500 per person) at the time of deposit, and add more coverage to that current policy closest to the flight.

To further clarify, I asked Haidt what travelers should consider when booking, this year and beyond. Below, highlights.

InsideHook: Let’s say I know nothing about travel insurance. What exactly is travel insurance, and what does it cover?

Laura Haidt: Travel insurance provides protection for travelers when they are at least 100 miles from home in the event of unforeseen circumstances. Protects trip investment, provides coverage while traveling. If you have to cancel your flight for medical reasons, either for the passengers themselves or for their family members who are not traveling, your loss will be refunded in cash and not a voucher. The policies are comprehensive, and include not only cancellation, but also: flight interruption, travel delay, baggage coverage, medical, evacuation and repatriation.

How many types of travel insurance are there? What are the best policies?

There are many types of policies. For flight only, it can be post-departure, cancellation or cancellation for any reason. The best policies are comprehensive plans that provide coverage for unforeseen circumstances.

How it works? How do you provide proof of travel insurance?

When purchasing an insurance policy, the traveler receives a confirmation of coverage that provides proof as well as emergency travel assistance phone numbers.

Some credit cards offer some protection – how is travel insurance different?

Credit cards offer protection, but you should be careful. For example, if the cost of the entire trip is not on one credit card, the claim may be denied. Also, the benefits aren’t as strong on credit card coverage. For example, medical coverage up to a maximum of $10,000. Third-party carriers offer $50,000 and up.

Are there any circumstances under which I will be required to obtain travel insurance?

Some destinations require proof of medical insurance and flight delay coverage in the event of a quarantine or hospital stay.

What are the reasons for canceling the included trip?

There are many reasons for cancellation: medical reasons, death in the family, business reasons, destination or your home being uninhabitable, strikes, natural disasters, and more.

What COVID-related expenses are covered, if any?

Travel insurance provides cancellation if you test positive before you leave, and it is seen as any other illness. In addition, if you test positive while travelling, it offers the benefits of quarantine under flight delays and flight interruptions for non-refundable prepaid expenses, and assistance in obtaining new airline tickets to take you home.

There has been a lot of focus on getting travel insurance over the past year and a half – is it actually more important than it used to be?

Travel insurance rose with the focus on 9/11 and has been an important factor ever since. In the past 18 months, it has made a huge impact on the peace of mind of travelers, especially while traveling. One of the main points to remember is that travel insurance does not automatically introduce ‘travel fear’. [For that]You must purchase the “Cancel for any reason” policy, which offers 75% of your investment.

How do the policies offered by the airlines work? Are they all the same?

Airline policies are referred to as custom policies, and they are tailored between the airline and the insurance companies.

Are there any circumstances under which my travel insurance will be canceled?

Policies are not applicable when traveling to North Korea, Iraq and Iran. If you are only traveling for medical treatment, mental disorders, attempted suicide, war, government restrictions, or participation in professional sporting events.

Can you give me an example of when travel insurance might not be necessary

Since the policy does not cover trips that are within 100 miles of your home, this is not necessary. If a person travels on a private plane and goes to a home they own.

How much should I expect to spend on travel insurance?

The cost of insurance is determined by the cost of the trip and the ages of the passengers, and can range from 6% to 12% of the cost of the trip.

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