With everyone opting to travel now, the pandemic continues to rage. Breaking news at any time can completely alter travel plans out of the blue.
As things are getting back to normal, you may be ready to book your vacation. But don’t forget to purchase a comprehensive travel insurance policy. Such a policy will provide protection against all financial losses caused due to unexpected problems before or during the trip.
This article will highlight the 5 main kinds of travel insurance. No matter which policy you pick, make sure you read all the fine print carefully. And don’t forget to talk to the provider if you have any questions.
1. Cancel For Any Reason (CFAR) Insurance
If you are concerned that you might lose money on the trip, CFAR is the ideal plan for you. Through this, you can recoup almost all of what you paid, no matter what the reason behind the cancellation is. It’s a perfect option if the standard policies don’t give the kind of coverage you desire.
This kind of policy is usually added 14 – 21 days after the first deposit of the trip is made. The main downside of CFAR insurance is that it’s pretty costly and won’t always guarantee the return of all your money.
The bottom line is that this kind of travel insurance is only worth it if you are planning a really expensive trip.
2. Pandemic-Specific Insurance
Most insurance providers have the same policies, i.e. they exclude COVID from the coverage plan. Only a selected few provide new plans specifically designed for travel during the pandemic.
For instance, Globelink provides travel insurance with COVID cover. They provide superior COVID-19 cover for free with any policy. If you are a frequent traveler or shift your travel plans frequently, you can get annual multi-trip travel insurance. It’s the best that you can get.
The biggest issue is that most travelers assume that a policy will cover any change or inconvenience related to the pandemic. Whereas in reality, they cover only a few perils. So make sure to check with the policy rather than making assumptions.
3. Provider-Offered Travel Insurance
A few airlines, cruise lines, and hotels have started offering COVID-specific travel insurance policies to win travelers back. Some are even free of cost.
But remember that all provider-offered insurance policies are not equal. That is why we suggest that you should always read the fine print. Usually, travel insurance plans provided through a travel supplier are designed to give benefits related to the supplier. For example, illness caused at the destination may not be added to the plan.
Some often leave behind expected benefits just to become price competitive. So, always choose the one that suits you well.
4. Credit Card Travel Insurance
As you know, most credit cards give built-in travel insurance plans. These often provide enough travel delays, trip cancellations, baggage, and rental car benefits.
Don’t forget that in order to claim this insurance, you have to make the bookings through those cards. You can’t expect to claim the insurance on that card simply by carrying it and using the other one.
On the other hand, if you have costly items with you while traveling, the insurance coverage on your credit card can cover the maximum of it. But in most cases, it may not be suitable for you.
Such policies rarely have medical coverage, which is the main reason behind getting travel insurance. While in other cases, you may be required to book the entire trip on a credit card to avail of the coverage.
5. Standard Travel Insurance
Standard travel insurance doesn’t have coverage for pandemic-related issues. But many companies like hotels, airlines, and cruises still provide flexible policies on cancellation and rebooking. And this is just the type of reassurance you will need for booking your trip.
Just note that everything you have paid for other than the hotel, flight, or cruise will not be covered. So you are still on the hook for such expenses. Above that, some providers have set a specific time frame for cancellation. In contrast, the others offer a credit for future travels instead of a full refund.
Final Word
Travel insurance has become an absolute necessity in the current timeframe, with new variants of COVID-19 popping every now and then.
So make sure you follow these tips:
- Read the fine print carefully.
- Check the PCR test requirements
- Make sure the policy that you have picked fulfills all your needs.
- Don’t overspend on an insurance policy that is not covering all the bases.
We hope this article helped you find everything you need to know about the types of travel insurance. Thus, allowing you to get the right insurance policy for your travel plans.
