Travel Insurance

Trip Cancellation Insurance for COVID-19

Last Update November 26th, 2021 .  This post may have affiliate links, which means we may receive a small commission (at no extra cost to you) if you choose to purchase through them.  

Travel insurance, including trip cancellation insurance for COVID-19 is extremely important to consider when planning any travel since the onset of the pandemic. Below are some FAQ’s regarding travel insurance and coverages for coronavirus.

1. What exactly is Travel Insurance? Travel insurance is an insurance policy purchased through a licensed trip/travel insurance company that is intended to cover such things as medical expenses (should you fall ill while travelling), trip cancellation, lost bags, and other mishaps when traveling abroad. This coverage has nothing to do with any credit card coverages NOR with your health insurance as it is a SEPARATE policy specifically to protect your trip.

2. Is this coverage included with my package? We do NOT include trip insurance in our packages and they MUST BE PURCHASED SEPARATELY (typically within 14  to 21 days of your initial deposit date). We do NOT include the insurance in our packages, because policies vary in cost depending on factors such as age, state/country of residence, trip cost, and other factors and you must OPT in and purchase it separately.

3. Is trip cancellation for COVID-19 included in standard travel insurance policies? It depends on the reason for a potential cancellation.  Typically you ARE covered for cancellation if you or your travel companion are infected with COVID-19 and cannot travel due to being ill/positive with COVID. 

Currently, this even includes testing positive for the virus before departure and not being able to travel due to a positive test! 

 However , trip cancellation insurance for COVID-19 policies typically will NOT cover if you cancel your trip  due to reasons such as:

    1. Fear of traveling  due to the outbreak condition in a specific country or location. 
    2. Not feeling comfortable traveling due to a new COVID strain or variant.
    3. Your government issuing a travel warning against travel to your destination. (or upgrading a warning to a higher level).
    4. Your destination country blocking entry from your country or stopping flights from your country.  
    5. Not wanting to travel because your state or country requires YOU to quarantine upon return.
    6. Your destination has new lockdowns or curfews.
    7. There are restrictions at the travel destination due to vaccination status.
    8. Not being vaccinated for COVID and the destination you are going to requires it for travel or changes rules and newly requires vaccines for travel.
    9. You are unable to travel to the country you are booked for as there is a new variant and your country is not on an “approved list.”

4. How can I protect my trip if policies do NOT cover the situations above? One of the only ways to protect future travel plans from disruption and cancellation for coronavirus would be to purchase a travel trip cancellation insurance for Covid-19  that has a specific  upgrade to CANCEL FOR ANY REASON or  “CFAR”. These these policies typically are “upgrades” to the standard coverages and you must OPT-IN and UPGRADE (if available) to “CANCEL FOR ANY REASON” when purchasing them. CFAR policies reimburse up to 75% of your non refundable or non recoverable trip costs and the cancellation must be done at least 2 days prior to departure. You also must typically insure the full cost of your trip.

5. Can I file a CFAR claim if a trip or special event has been Cancelled? NO. Please note that cancel for any reason is valid if YOU cancel the trip for any reason.  In the event that the travel company cancels the trip (for example if a special event is cancelled) and a CREDIT is granted for future travel or is rolled over for the following year’s event, most travel insurances  will  MAKE YOU TAKE THE CREDIT. This is new as of July 15th, 2021 and we recommend checking this with the travel insurance company prior to booking.  Remember,  CFAR is only valid if YOU CANCEL the trip for any reason.

6. When do I need to purchase Trip Cancellation Insurance for COVID-19 coverage?  Travel insurance policies can usually be purchased any time you wish prior to departure, but  the “cancel for any reason” CFAR upgrade usually has to be purchased within 21 days of the date you initially booked your trip. Additionally other coverages are time specific too (such as some pre-existing medical condition coverages) so it is always best to purchase it ASAP after booking.  We advise that you call the travel insurance company that you will be purchasing the policy from PRIOR to booking so you have the correct and updated information  as purchase time limits can vary by state and some states may not offer CFAR coverage or have limit amounts for coverage.

7. Do you recommend a specific company? We recommend the following travel insurance company click here but you are welcome to book with any company of your choice. Click HERE for a recommended travel insurance company for Canadian residents.  If you are a NON USA or Canadian resident, we recommend shopping online for a reputable travel insurance provider in your country of residence for Trip Cancellation Insurance for COVID-19.

We recommend that all clients shop around and be as knowledgeable as possible about insurance to make the right choice for them. Before committing to any kind of travel insurance coverage it’s always a good idea to call the insurance provider to make sure that everything you think is covered will be covered for your exact trip to the exact destination you are going to. It is also a good idea to discuss any potential situations or hypothetical scenarios you have questions about in terms of whether or not those would be covered as well.

8. What is the cost of the Trip Cancellation Insurance for COVID-19? – The cost will depend on your state of residency, as well as your trip cost and age.  The link above will help you calculate the coverage cost.

9. Is medical coverage included should I fall ill while on the trip with COVID-19? Currently – YES. COVID-19 is treated the same as any other sickness for purposes of all coverages that are triggered by a sickness.

10. Is it a good idea to purchase travel insurance if I have or will already be vaccinated for Covid-19?  YES. It is important to remember that currently even if you have already been vaccinated, many countries will and may require that you test negative for COVID-19 prior to departure regardless if you have already been vaccinated and you theoretically could test positive for the virus and be “asymptomatic” and not be allowed to fly!  For this reason it is a good idea to have insurance in case of cancellation due to testing positive.  Additionally, as mentioned above, CFAR (cancel for ANY reason) insurance will cover you for cancellation for reasons covered in “Question 3” above.  Lastly, some countries may require that you have medical insurance while on your trip in case you fall ill with COVID. Medical insurance is included with most policies.

This post is for general information purposes only. The COVID-19 situation is a highly dynamic situation. Travel insurance products are subject to change without notice, as well as country entry requirements. It is up to the individual traveler to obtain up to date and correct information prior to purchasing any coverage and/or traveling abroad. We do not endorse traveling against government travel advisories and recommend that you consult with your physician prior to traveling during the pandemic. 

If you have any further questions, please contact your sales rep or click HERE. Due to the fast-evolving situation with COVID-19 we do recommend that you call the travel insurance provider PRIOR to purchasing any trip to make sure you are up to date with all policies and coverage as they are always subject to change. 

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