Is travel insurance worth the cost right now? – NBC 7 San Diego
Planning a vacation can be stressful. The pandemic has shown how quickly plans can change and need to be adjusted or even canceled. With the reopening of borders and the resumption of cruises, people are taking a closer look at travel insurance.
“About a third of Americans now want travel insurance,” said Doug Shupe of the Auto Club of Southern California. “They say it’s directly because of the pandemic.”
Travel insurance protects customers who face unexpected problems that affect their vacation plans. Depending on the type of insurance, it can cover everything from cancellations beyond your control to family emergencies.
“Travel insurance is relatively inexpensive when you consider how much you spend on vacation,” Shupe said. “But contact the travel insurance provider for answers to your questions before purchasing this insurance.”
Make sure you know exactly what is covered. Many vacations canceled due to the pandemic were not covered by travel insurance.
“In the past, travel insurance did not cover epidemics or pandemics, but that is changing,” Shupe said. “More and more travel insurance providers are starting to respond to consumer demand and wishes, so there are more and more coverage options for certain types of covid situations.”
There are two main types of travel insurance. Basic Trip Cancellation Protection covers the little things that go wrong, such as loss of luggage or illness before a trip. Comprehensive travel insurance covers major issues such as a medical emergency or even the destination affected by a disaster.
Check to see if the travel insurance you are looking to purchase includes a “cancellation for any reason” clause and double-check what the policy’s pandemic coverage is.
Buying comprehensive travel insurance can get expensive, so weigh the pros and cons. Depending on the package, this can cost between 4 and 12% of the total price of your trip. It may work better for more expensive and international trips, instead of short trips.
Also, be sure to check with your credit card company, auto insurance, and medical insurance. Some companies will offer coverage for trips booked with their cards or for their customers.