Travelling during a pandemic, part 4. Insurance
The question I have been asked the most about travelling right now is “what about insurance?” Since I am from Canada, I am used to “free” healthcare. (Not really free - we pay taxes. But it is nice not to get a bill when you leave the doctor’s office). Now, I never travel internationally without travel medical insurance, but it is a little trickier in these Covid affected times.
Everything seems more complicated these days.
With a little research, you can find coverage which will pay some or all of your medical bills should you come down with Covid 19 while travelling. You definitely do not want to need hospitalization without insurance - in some countries this could run you tens of thousands of dollars per day! Just be warned - depending on your age or health this coverage could be expensive. Some airlines are providing Covid 19 coverage, but confirm the details.
Near us in Cancun is a very modern hospital. Last year we were visiting a friend, and my wife helped a lady with the paperwork. Her husband had been in for a couple of days, and the bill to the insurance company was over $60,000! This isn’t something to mess around with - get coverage if you travel.
Others though want to travel as soon as the pandemic is over - but don’t know when that will be. With the arrival of vaccines it looks like things will be better soon, but it is hard to be sure. There are also going to be limited supplies of the vaccine for quite some time, especially in poorer countries. What if you buy a vacation hoping, hoping things will be better, and when the time comes, they are not?
This is another area insurance can help with. The travel industry has been taking a beating, and they are trying every way to find a way out. The pandemic is making travel during this year quite a challenge for all of us. With that in mind, it is important now, more than ever, to have the necessary coverage for your trip. Despite your best plans, we have all learned that things change. Be ready for any delays or cancellations that may occur.
It’s not just the current pandemic we need to worry about. Trips got cancelled long before Covid 19. This past October Cancun was hit by a tropical storm and two hurricanes. Plenty of people wanted to cancel their trip when they saw the forecast, and others raced to the airport to get out of town. There are a lot of reasons why you might want or need to cancel your vacation.
The best travel insurance policy for you is going to be the one that offers the specific coverage you need at a price you can readily afford. Here’s a rundown of the most common types of travel insurance, as well as some of the optional benefits you may want to look into.
● Cancellation coverage: as its name implies, covers you for pre-paid, non-refundable expenses under a fixed set of circumstances outlined in your policy. You can make a claim when you have to cancel a trip due to a health emergency or illness, for example. Depending on the policy you choose, you may also be able to make a claim if you’re laid off from work or you’re called for jury duty.
Some credit cards will even cover your expenses sometimes if you were to cancel last minute.
● Interruption coverage: This protects you in the event you have to return home due to an emergency once you’ve already started your trip. It will pay for the cost of getting you home and getting you back to your destination once you’re able to travel again.
If the list of covered cancellation reasons under basic cancellation coverage seems too limited to you, you might want to opt for CFAR or “Cancel For Any Reason”. It offers the fullest coverage but may only make sense for you if your calendar is subject to change at a moment’s notice.
Note that this one is so important for longer stays. I am down for 6 months. It is entirely possible that something will happen in that time requiring me to go home early. My health, family health, natural disasters, business needs - there is no way of knowing how many things could shorten my stay. Extensive interruption coverage could end up saving you thousands of dollars.
● Lost, stolen, damaged, and delayed luggage: This is one of the most common, and annoying, travel-related mishaps. Pay attention to coverage limits and increase yours as necessary. Even mundane items like laptops and cell phones have replacement costs beyond the limits set by basic policies, so be careful to read your policy closely to be sure your most expensive possessions are fully protected.
Whether you choose travel insurance for your international or domestic trip, make sure you understand exactly what’s covered. There are different categories for basic and special coverage. Be sure to check out this article from ConsumersAdvocate.org who provided the information for this article and make sure you understand the fine print before booking your next trip.
