With summer on the horizon, many countries around the world are loosening their COVID-19 restrictions, from quarantines to testing requirements to mask rules, or dropping them altogether.
But at least one aspect of the pandemic-era travel landscape has become the new normal for many people: travel insurance. This affordable, supremely helpful safety net has saved the day—not to mention plenty of money—countless times over the last two years for travelers who have been forced to delay or cancel their trips because of COVID-19-related illnesses or any number of other hassles.
In fact, even as COVID-19 restrictions have been relaxed or dropped in many destinations, interest in travel insurance is at “an all-time high,” according to Megan Moncrief, chief marketing officer at insurance comparison site Squaremouth.com.
Moncrief says that 42 percent of travelers searching for a travel insurance policy on the site over the last month have specifically indicated needing coverage related to contracting COVID-19, with benefits that cover medical, cancellation, and quarantine. That number represents a nearly 10 percent jump from the same time last year. “We correlate the increased need to the ongoing requirement for U.S. travelers to receive a negative COVID test prior to reentry, coupled with an increase in international travel,” Moncrief says.
However, even if the U.S. does eventually drop its testing requirements to enter the country—which some prominent travel groups have been urging—industry experts encourage people to continue purchasing travel insurance, especially in a landscape where rules continue to shift. “It’s really important for travelers today to realize that while restrictions are loosening, traveling remains precarious, rules and regulations are still changing frequently,” says Michelle Couch-Friedman, executive director of Elliott Advocacy, a Washington, D.C.-based consumer advocacy nonprofit. “So travel insurance is just as important as it was when the pandemic was in full force.”
Depending on the destination, travel insurance may still be essential to enter. Some countries around the world require travel insurance—currently, Argentina, Cuba, Turkey, and several Caribbean countries are among those that do. (Check specific requirements through Squaremouth’s Destination Center, as well as via sites such as Insure My Trip.) Requirements also vary by country: Some destinations require proof of insurance for unvaccinated travelers, and some countries, including Aruba, require travelers to purchase “visitor’s insurance” to help offset COVID-19 medical expenses if needed. In Aruba, such insurance, which costs $15 per person, per day, is mandatory for foreign visitors aged 14 years and older, even if they have existing travel insurance.
During the pandemic, many U.S.-based insurance providers, including Allianz, also shifted their policies in response to COVID-19. Many of those updated policies now cover cancellations or delays due to illness, individually ordered quarantines, denied boardings, and other events caused by COVID-19 or future epidemics. Previously, only one type of insurance offered some measure of coverage amid an existing epidemic or pandemic—cancel-for-any-reason policy upgrades—with the majority of travel insurance offering no coverage in a situation like COVID-19.
While these shifts build on added flexibility in the travel industry as a whole, there are still contingencies to be aware of. As with any policy, don't forget to read the fine print: These types of enhancements still do not cover claims due to government travel warnings or advisories, and a handful of other exceptions like certain foreseeable events. “One thing to remember is that although many insurance policies will cover a trip cancellation if the traveler becomes ill with COVID, these policies do not generally cover a cancellation because of a ‘fear of a new COVID strain’ or ‘COVID restrictions’,” Couch-Friedman says.
She also notes that, for international trips—which have rebounded this summer travel season—travelers should make sure they understand what kind of medical expenses their policy covers while they are abroad, because the vast majority of U.S. health insurance won’t suffice outside of U.S. borders. “In almost all circumstances, travelers should make sure they're covered by a comprehensive travel policy, keeping in mind that most U.S. health insurance policies do not provide coverage for treatment abroad, including onboard a cruise ship once it reaches six miles from the U.S. shoreline,” Couch-Friedman says, noting that the policies that do provide some coverage abroad usually require the policy holder to pay out of pocket and then file a claim once they’re home. “This can lead to a devastating situation if the health care provider requires prepayment before receiving treatment and the traveler doesn’t have the funds to pay for it out of pocket.”
Most insurers offer a 10 to 14 day “look-over period” after purchasing a policy during which travelers can look closer at the coverage and make sure it provides necessary coverage, especially with regard to COVID-19 disruptions. “If it doesn’t, the policy can be refunded during that period and the traveler can find a policy that will provide the correct coverage,” says Couch-Friedman. The customer service number can usually offer a helpful, time-saving way to sort through the specifics.
Those staying closer to home this summer should still strongly consider travel insurance—especially if they’ve booked non-refundable hotel rooms, airfare, or rental cars. “In general, most hotels are now reverting back to their pre-pandemic policies—non-refundable means non-refundable and non-changeable,” says Couch-Friedman. “Without a good travel insurance policy, the financial loss rests on the shoulders of the traveler. You don’t want to be stuck with no vacation and no refund.”
This article has been updated with new information since its original publish date.
