Jeffrey Wade
The COVID-19 pandemic has made travellers more aware of the financial consequences of unforeseen medical emergencies and trip interruptions. While travel insurance policies typically exclude epidemics and pandemics, most now offer COVID-19-related protection, including medical expenses. This protection includes medical care if a traveller is infected with COVID-19 on vacation, reimbursement for non-refundable expenses if a traveller is diagnosed with COVID-19 before departure, and cancellation fees if a travel partner or family member is diagnosed with COVID-19. Additionally, some insurance companies cover quarantine expenses when ordered by health authorities.
| Characteristics | Values |
|---|---|
| Trip cancellation | Reimburses pre-paid travel expenses if you are prevented from taking your trip for a reason covered by your policy. |
| Trip cancellation due to COVID-19 | If you have a Cancel For Any Reason (CFAR) policy, you can cancel your trip for any reason, including COVID-19. CFAR plans typically reimburse 50-75% of your expenses. |
| Medical and major medical | Provides protection if you become ill or injured while traveling. Travel medical insurance provides short-term medical coverage. |
| Medical and major medical due to COVID-19 | The majority of insurance policies will cover COVID-19-related medical expenses. Some policies even include coverage for long-term COVID-19 symptoms or complications. |
| Medical evacuation | Covers emergency medical transportation to the nearest adequate medical facility and then home if warranted. |
| Medical evacuation due to COVID-19 | Covered by most insurance policies. |
| Accidental death and dismemberment | Provides coverage to beneficiaries if you die in an accident on the trip or pays a sum to you if you lose a hand, foot, limb, or eyesight from an accident. |
| Accidental death and dismemberment due to COVID-19 | Covered by most insurance policies. |
| Baggage loss | Reimburses for loss of baggage or personal items. |
| Baggage loss due to COVID-19 | Covered by most insurance policies. |
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What You'll Learn
Trip cancellation
However, it is important to note that travel insurance policies typically exclude epidemics and pandemics, including COVID-19. This means that trip cancellations or changes in plans due to COVID-19-related reasons, such as travel advisories or government-imposed restrictions, are generally not covered. Nevertheless, some travel insurance providers have started offering COVID-19-specific coverage, which includes trip cancellation benefits. These policies may provide reimbursement for cancellation costs if you or your travelling companion contract COVID-19, or if you are ordered to isolate or quarantine due to close contact with a person diagnosed with COVID-19.
When considering trip cancellation coverage, it is essential to carefully review the terms and conditions of your policy to understand what is covered and what exclusions apply. Additionally, some policies may offer a Cancel for Any Reason option, which allows you to cancel your trip for any reason but typically provides reimbursement for only a portion of your expenses. This type of coverage is usually added as an extra option and may have specific requirements, such as purchasing the policy within a certain timeframe of booking and cancelling at least 48 hours before departure.
To ensure you have adequate coverage, it is recommended to purchase travel insurance early, ideally within 14-21 days of booking your trip. This will provide you with more comprehensive protection and give you peace of mind in case unforeseen circumstances arise, including unexpected cancellations.
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Medical and major medical
Travel insurance is designed to protect you against financial losses that can occur when travelling. It can cover expenses related to lost or damaged baggage, major medical emergencies, hotel or flight cancellations, and other risks that come with travelling.
During the COVID-19 pandemic, travel insurance has become more relevant than ever. Some travel insurance policies now include cover for unforeseen COVID-19-related scenarios, helping to reduce the financial risk of travelling during the pandemic. These benefits can include cover for incidents relating to overseas medical expenses, trip amendment or cancellation costs, and additional expenses. However, it is important to note that policies will vary from provider to provider, and there may be certain scenarios that are not covered. For example, most travel insurance policies will not cover the cost of COVID-19 testing required for travel, but may cover the cost if a physician requests a test during your trip.
In addition to medical expenses, travel insurance can also provide cover for medical evacuation and repatriation of mortal remains in case of death. This can be crucial, especially when travelling to a country with expensive healthcare for non-residents. For example, emergency medical treatment for British travellers can cost up to £4 million per week, and treatment in the United States can be even more expensive.
When considering travel insurance, it is important to carefully review the terms and conditions of the policy to understand what is and is not covered. This is especially important when it comes to COVID-19, as there may be specific exclusions or limitations in place. For example, some policies may require you to have primary health insurance before purchasing travel medical insurance, as travel policies often only offer secondary medical coverage.
In summary, while travel insurance can provide valuable protection against unforeseen expenses, including COVID-19-related medical expenses, it is essential to understand the specific coverage and limitations of your chosen policy.
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Emergency medical evacuation
In the context of the COVID-19 pandemic, emergency medical evacuation coverage can provide important financial protection for travelers who become ill while abroad. While insurance cannot override orders from health authorities to evacuate quarantined travelers, comprehensive travel insurance may help cover the costs associated with quarantine. It is important to note that emergency medical evacuation coverage only applies to the expenses of the evacuation and treatment received during transportation and does not cover the cost of medical services once you arrive at the new facility. Therefore, it is recommended to have both medical evacuation insurance and travel medical insurance when traveling abroad.
When choosing a travel insurance plan with emergency medical evacuation coverage, it is important to consider the maximum coverage amount, as this can vary significantly across policies. Some plans may offer up to $1 million per person for medical evacuation, while others may have lower limits. Additionally, it is worth considering the specific benefits included in the plan, such as coverage for a travel companion or medical escort, as these can provide valuable support in the event of a medical emergency.
Overall, emergency medical evacuation coverage is a crucial component of travel insurance, providing financial protection and peace of mind for travelers. By understanding the specific coverage provided by different policies, travelers can make informed decisions and ensure they have adequate protection in the event of a medical emergency during their trip.
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Accidental death and dismemberment
Travel insurance can help protect you and your loved ones from the costs of travel-related accidents. Most travel insurance plans provide coverage for accidental death and dismemberment (AD&D). This is a limited form of travel life insurance. Some plans also provide an optional rider to increase the amount of AD&D coverage. In the event of accidental death, the insurance company will pay a designated amount (called the Principal Sum) to the beneficiary as the travel insurance death benefit. An accidental death must be a sudden, unintentional, unexpected occurrence, with the cause being solely external and visible, i.e., the accidental death must be the result of a physical injury.
Accidental death due to sickness, illness, non-prescription drug overdose, suicide, natural causes, terrorism, or war is typically not covered by insurance companies. There may be other exclusions, such as if you have a heart attack while driving and are killed in an accident, or if you are admitted to the hospital due to an accident but die from an infection acquired in the hospital.
In the case of dismemberment, if a vacation accident causes you or another traveller on your policy to lose a limb, sight, speech, or hearing, the insurance company will pay you up to the amount listed in your policy. The amount you receive depends on which plan you choose and which body part or function was lost unexpectedly on your trip. Most insurers provide coverage amounts ranging from $25,000 to $50,000. When a person loses one limb or eye, travel insurers usually pay 50% of the total benefit. Some policies may also cover dismemberment of a thumb and index finger of the same hand for one-quarter of the principal sum.
It is important to note that AD&D policies provide fixed amounts of compensation regardless of actual medical or burial costs. The benefits are paid in addition to any health insurance reimbursement that an individual receives. Additionally, some insurers limit accidental death and dismemberment coverage to certain types of accidents, such as airplane crashes or mass transportation accidents. The most comprehensive AD&D plans, often referred to as "24-hour" policies, cover all activities during a trip.
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Baggage loss
While it is important to check the fine print of your travel insurance policy, most comprehensive plans include coverage for baggage loss and baggage delay. This means that if your luggage is lost, damaged, or stolen while travelling, your insurance can reimburse you for the actual price, actual cash value, repair or replacement, depending on what is outlined in your policy. It is important to note that this coverage is usually secondary, meaning that the benefits will only kick in after the airline provides reimbursement. Therefore, if there are costs that weren't reimbursed by the airline, you can file a claim with your travel insurer for covered items that were lost.
To be eligible for this benefit, you must first take reasonable steps to keep your baggage safe and recover it, as well as file a report with the airline or local authorities in the case of theft or loss to file a claim with your travel insurance company. It is also recommended that you provide receipts for high-value items to receive full reimbursements.
In addition, not every loss is covered. For example, cash is not reimbursable and many policies won't reimburse for expensive jewellery. Therefore, it is important to check your policy carefully to see what is included.
If you don't have baggage insurance benefits, you can still be reimbursed by the airline carrier for lost luggage and baggage delay. However, having an extra layer of protection is helpful, especially if your luggage is expensive or if the baggage insurance benefits on the travel insurance policy are higher than the airline's.
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Frequently asked questions
Travel insurance policies vary, but most now cover COVID-19-related medical expenses. It is important to note that if you have tested positive for COVID-19 before buying travel insurance, you will not be covered for related medical costs.
If you are unable to travel due to a positive COVID-19 test, many insurers will reimburse you for non-refundable expenses. Cancel For Any Reason (CFAR) policies are typically added as an extra option and reimburse you for a percentage of your travel costs.
If a close travel partner or immediate family member is diagnosed with COVID-19 and you have to cancel your trip, some policies can pay for cancellation fees. You will need to show medical evidence to make a claim.
If you get COVID-19 during your trip and have to interrupt it or return home early, trip interruption coverage can assist with any additional costs.
