Travel Insurance: Top 5 things to know
Travel Insurance.
What comes to mind when you hear this phrase? For some, it’s that extra box you check when you’re buying a plane ticket that you can’t actually remember what it says it covers. For others, it’s the rental car insurance you add to your daily rental fee in case you wreck the car. And for others still, it’s the protection plan you buy to make sure you’ll have access to medical care or repatriation in an emergency abroad. All of these are “travel insurance” but not all are always useful or applicable for the situations you may think they are. Travel insurance is notoriously confusing and sneaky. If you think checking that box at checkout on an airline’s website will guarantee your money back if you decide to cancel your trip, think again. If you’ve never traveled internationally but want to go for it this year because COVID has made you realize ~YOLO~, you may want to know more about international travel health insurance.
With the COVID-19 vaccine coming out, things are looking more hopeful for this year, both in domestic and international travel. Yes, you may be required to provide proof of vaccination before traveling and masks are probably here to stay for a while, but people will be able to move *relatively* freely again soon. Hallelujah. However, this year will still be iffy for some travelers who won’t be comfortable yet or plans might still need to be flexible in case of more outbreaks. This is where travel insurance comes in. Whether you want to protect your travel plans or protect your own health, there are different types of insurance that will help make you feel safe and confident enough to get out there again.
Here are the top 5 things to know about travel insurance to help you confidently and carefully plan travel this year:
Add-on Insurance on your flight doesn’t guarantee your money back if you cancel or miss your flight.
This one is a big misconception. Most people think if they decide to add on airline flight insurance to their trip at checkout, they can cancel their tickets or change them with no fees or issues. This is mostly not true. Those add on plans are more geared towards reimbursing you if the AIRLINE cancels the flight, not if you cancel your ticket. Although a lot of airlines are making changes to their change and cancellation policies, most still won’t cover letting you cancel your tickets since you’re doing it by choice. To get a refund from that and cover yourself to make a last-minute decision on whether to go or not, you would need a CFAR (Cancel for Any Reason) policy.
CFARs are add-on policies either through an airline or third party insurance company that allow you to cancel your booking for any reason at all and still get a reimbursement.
However, these policies still don’t guarantee a full reimbursement, typically they offer around 75% reimbursement so don’t get your hopes TOO high. For this type of policy, you should weigh the other costs of your trip. Are you going on an international trip and your flights are the majority of your trip cost? Or is it a cheaper, domestic flight where the cost of the policy would cost more than what you might be reimbursed for? Can you get a refund on the other costs of your trip if you cancel, like accommodations or tours you’ve booked? Things to consider when weighing the benefit of one of these policies.
There are insurance policies that cover everything; medical, emergency, and trip cancellation or interruption.
These policies are typically through independent companies, not airlines or hotel brands. Even many airline policies are through third party companies so it’s typically better to look at multiple options if you’re looking for that type of coverage. Some favorites I have used are World Nomads, Seven Corners, and Allianz. I know World Nomads specifically outlines that you are eligible for trip interruption and medical coverage if you become sick with COVID-19 while traveling and trip cancellation with a full refund if you become sick before traveling. They don’t have a CFAR option however, so you can’t cancel just out of worry about COVID or any other reason. These independent options are great for ensuring you get medical coverage abroad, you can be evacuated due to medical emergency or other emergency, and you can get full refunds on flights, hotels, etc. if you become sick or something else happens before or during your trip. When I had very serious food poisoning in Peru, my medical travel insurance was helpful for having to buy medication and when I thought I might have to go to the hospital for fluids. It’s definitely a comfort to have a policy that covers it all.
Certain credit cards offer travel insurance on their own!
If you are like me and have the Chase Sapphire Reserve credit card, aka the best travel credit card, you will be covered for certain things just by using your credit card to purchase them. For example, say you rent a car in a foreign country using your credit card as payment, and you take a google maps route through a very tiny town that gets smaller and smaller until your car is stuck up against the side of an old Greek woman’s home and there’s not enough space to turn around so you end up scratching the hell out of the side of the car in order to get it out of this little town. (Yes this is a real experience and yes it was incredibly embarrassing) No worries. You’re covered! Make sure to decline the rental agency’s insurance option (AS LONG AS YOU HAVE USED YOUR TRAVEL CREDIT CARD TO BOOK) and then whatever damages you owe for the car, the travel credit card company will reimburse you for. Same with lost luggage or a missed flight due to bad weather (looking at you O’Hare airport with the constant cancellations and delays). If you use your credit card to book these things or to buy supplies after your luggage has been lost or delayed, the card company will reimburse you. It’s a beautiful thing. However, credit cards only cover trip insurance, NOT medical or emergency so still add on a medical/ emergency third party policy if you’re traveling outside the US especially. Be sure to keep all your records and receipts to present as well to get your reimbursement.
If traveling domestically, you typically won’t need travel insurance.
You can do an add-on through the airline or your hotel or any rentals, but I would suggest doing those individually. It’s usually cheaper to just add on individual insurance policies with your airline for flights, your rental agency for cars, or hotel brand for accommodations. Unless you’re spending much more than you’re willing to risk losing, a quick flight to visit family, or a weekend at a hotel aren’t worth paying for third party insurance coverage. You can also look into things like AAA that have certain add on protection as well.
The first moments with the car that was very scratched up in a small town on Naxos in Greece. Shout out to Chase Sapphire Reserve for covering the damages. We learned to not always follow google maps and maybe ask a local for a good route since when we brought back the scratched car to the agency they asked us what town we had been in and when we told them they went “ohhhhh yep,” with a knowing nod.
In general, some other things to be aware of when deciding on your insurance needs are what is the healthcare system like in the place I’m visiting? Will they have the capacity or resources to help me if I become ill or injured or will I be putting stress on their healthcare system/ without the resources I need? Do some research before going and make sure you won’t become a burden to them if something happens, as well as you won’t be stuck without options. Take into account your trip budget, how much money are you willing to risk losing if there is a COVID outbreak and you decide not to go?
I encourage you to be mindful of the risks to yourself but also to the community you’re visiting when deciding whether to go somewhere and whether to purchase insurance. For more info, here are some helpful links to read more about what policies are best for what situations, who covers what, and how to compare:
Airline travel insurance vs Independent travel insurance: Which is right for you? - NerdWallet
Comprehensive guide to independent travel insurance - including coronavirus coverage - The Points Guy
Travel Insurance and COVID-19 FAQs - World Nomads
Trip Insurance and Coronavirus - Seven Corners
Travel Insurance 101 - Allianz
Whether you decide to travel or not this year, I hope you stay safe and healthy!
Sami
The fateful salad in Peru that gave me two weeks of food poisoning. Delicious in the moment, not so much in the aftermath.