Travel Insurance Tips in a COVID-19 World with Michael Giusti [INTERVIEW]

Traveling as we know it has changed forever. There is pre-COVID-19 travel and ultimately there will be post-COVID-19 travel, but how do we protect ourselves when traveling in the midst of a pandemic? As a travel journalist, you can bet it’s a question at the top of my list. Facemask, check. Hand sanitizer, check. Social distancing, check. Travel insurance…hmm. I have a girls trip planned to Cancun, Mexico in early November and it is still on the calendar. I’m flying Southwest, so if I do need to cancel, my airfare is covered. We have an out with the hotel, if we cancel by a certain date, so we’re not too worried about that. But what else should we be considering when it comes to protecting our financial investment? 

It’s always best to seek out an expert in these situations and so I contacted Michael Giusti, senior writer for InsuranceQuotes.com. He recently published two reports extensively covering how travel insurance is changing due to COVID-19 (view the most recent one here) and how to prepare for future trips.

What are the biggest policy changes in travel insurance with the impact of COVID-19? 

Coronavirus has changed a lot in the world of travel insurance. To start, though, the first thing to know is that you can still get travel insurance policies, but you also need to know that you can’t just assume you are covered for every situation. After Jan. 21, Coronavirus became a “known event.” Then, after March 11, COVID-19 was officially declared a pandemic. Those dates are important because certain policies specifically exclude pandemics. Others specifically exclude known events. If you bought a policy before then, you might have a better chance making a claim, but at this point, you need to beware of what you are paying for and what is excluded. 

What that means in practice is that at this point, if you are buying a policy, you need to ask specifically how COVID-19 will be handled and how different Coronavirus-related scenarios would be covered. There are companies stepping into the new market and eager to cover COVID in certain situations, and many companies are changing their policies to adapt to the new normal. For example, some companies are dropping the health coverage portion of their travel policies since international travel restrictions are keeping travelers from leaving the United States for the most part, meaning that the travelers’ existing health coverage would protect them. Instead, many of these new policies are now only focusing on trip cancellation.   

What did NOT change, however, is that fear of traveling is never covered. If you get sick and can’t travel, or if your spouse gets sick and can’t travel, then your policy might cover you depending on the policy language. But, if you cancel your trip because you are scared you might get sick, then the only way you would be covered is if you have the much pricier “cancel for any reason” option for your policy. But also know, some insurers are dropping cancel for any reason as an option for the time being. Again, ask – don’t assume. 

What are the top three things travelers should consider when booking travel during this pandemic? 

1. How much risk you are willing to take. If this is the trip of a lifetime and you will dip into your life savings to do it, you will definitely want to make sure you are covered with a policy that specifically includes COVID-19. If it is a smaller investment, then the higher cost of coverage may not be worth it. You might be better off opting for the next level up airline ticket that will be more generous with cancellations and changes. It really comes down to your risk tolerance, though.
2. How risky is the destination? If you are taking a plane to a tightly packed resort, then that is a bigger risk than if you are driving to a secluded cabin in the woods. The more opportunity you introduce for something to go wrong, the riskier the trip gets.
3. If you are scared, it is probably best to wait. Unless this is a once-in-a-lifetime opportunity, it might be worth waiting until after a vaccine comes out to take that trip.

What is the one thing travelers would be surprised to find is not covered in a standard travel insurance policy? 

Fear of travel. Unless the cancellation is out of your control, or in case you purchase the more-pricey cancel for any reason policy, you are not going to be reimbursed. It may be in your best interest to avoid traveling to a hot-spot. It may even save your life to cancel the trip. But if you chose not to travel, it is probably going to cost you the money you put down up front to walk away from that trip because you were scared to travel. 

What should travelers look for in a travel policy overall? 

Insurance is for managing risk. When you are worried about something and can’t avoid the risk, insurance is a great tool to give you peace of mind. However, you need to be sure you understand what you are buying. If you specifically want a policy to cover you for Coronavirus, then you need to ask that question directly. Ask the agent in plain English, and don’t be afraid to ask follow-up questions if the answer is confusing. It is so much better to know what you are, and are not, covered for than to think you are covered only to find out later that you are still at risk. 

When should travel insurance be purchased?  

Many policies require that you purchase within a few days of purchasing the trip, so don’t put money down on travel until you have an insurance plan in mind. Days before the plane takes off is obviously too late to start thinking about travel insurance. 

As far as the situation, it is really a risk-reward calculation. If you are really stretching for a month-long trip to the Wine Country, insurance makes more sense. If you are taking a quick weekend jaunt, maybe a policy isn’t worth it. 

Have you traveled during the pandemic or are you planning a trip in the coming months?

I have taken a few road trips. My family was able to rent a secluded beach house on the Gulf Coast, which was a terrific escape from the realities of today, but we risked it and went without travel insurance. Thankfully, all went well and we had a great trip.

For more travel insurance tips visit InsuranceQuotes.com.

Safe travels!

Feature Photo by Atikh Bana on Unsplash