Travel Insurance: Why, Who, How?

Miss Rona has a lot of our travel plans shook!

The corona virus has turned the world and insurance policies upside down since January 2020! While travel insurance policies typically don’t cover fear of travel or help with the anxiety about re-starting travel plans, the right plan can and will cover a plethora of potential scenarios. Travel insurance is no longer optional; it is an added expense that is needed to be able to travel. After thousands of travelers have lost deposits, non-refundable tickets and activities because of the coronavirus outbreak, HEAVILY advised more than ever. We discuss the why, who, and how to help you understand not only the importance of covering your bases abroad but the best way to go about it.

Half of Americans who canceled their travel plans during the pandemic lost money from both hotel and airline bookings. The average loss: $854 per person and only 1 in 5 Americans had invested in leisure insurance. Many insurance companies exclude epidemics and pandemics in their policies meaning that any claims that have arisen over the past several months are null in void and not covered; it happened in 2009 with the swine flu and 2014 with the Ebola virus so moving forward it is likely that generic insurance policies will NOT cover coronavirus in the future. At all.That’s why we ask – how do you buy travel insurance after the pandemic? Very carefully, say experts.

WHY DO WE NEED INSURANCE?

While it may seem like an unnecessary expense, travel insurance provides a vital safety net when we are abroad. In a nutshell, travel insurance is an all-purpose emergency coverage plan. It’s the single most important thing you should get for your trip; preparation is key and this takes priority.It’s predominantly protection but also peace of mind against those emergencies that can come out of nowhere and cost you dearly if you are not prepared. Since most health programs will not cover you overseas and credit cards often provide minimum protection, buying good travel insurance is a no-brainer.

WHAT INSURANCE POLICY?

If you’re going to travel, it’s not a question of if you need insurance, but what kind?Before the pandemic this question would have been like finding a needle in a haystack – endless options with a multitude of reasons as to why to invest in each particular one. However, we advise you take the advice of the experts – there are the two types of travel insurance you can and should buy after the pandemic:

“Cancel for any reason” travel insurance is going to be the breakout star of insurances during the coronaviru.   Although it’s more expensive than standard “named perils” travel insurance, it is more flexible. Its main benefit is that if you change your mind about your trip, the policy guarantees a minimum of 75% of your money will be refunded. “Cancel for any reason” coverage is quite simply an add-on to a pre-existing travel insurance policy that reimburses a portion of your prepaid, forfeited and non-refundable trip payments and deposits. If you want the ultimate flexibility to canceling your trip, whether it’s because of the coronavirus or just a change of mind, this is the coverage for you. It is your ultimate get out of jail free ‘money’ card!

“Named perils” travel insurance. This is the more common kind of travel insurance. It’s less expensive (7% to 9% of your trip cost), but as the name implies, it only covers the perils named in the policy, but these can include some weird and wonderful things. A number of insurance companies will be including various elements in reflection of coronavirus, i.e. cancelled flights.

HOW TO CHOOSE?

Travelers should continue looking for policies that provide coverage from unexpected injuries, illness, or accidents. Also pay attention to the refund terms. All travel insurance comes with a “free look” period of between 10 and 14 days after you buy the policy. This means read! Ensure you are comfortable that your policy covers the area you are particularly worried about. At least one thing hasn’t changed about buying travel insurance. That is to always read the fine print. Pay even closer attention to how your insurance policy handles a “force majeure” or an Act of God. Would the policy cover such an event, or would it be up to you to pay for your expenses? Knowing the exact terms of your agreement is important and the fine print is so important!

THE BEST TRAVEL INSURANCE COMPANIES OF 2020

Travelex: Best Overall

Allianz: Best Overall Runner Up

General Travel Insurance: Best Value

Geo Blue: Best for Medical Coverage

April International: Best Annual Travel Cover

World Nomads: Most comprehensive and also best for adventure trips

HTH: Best for Seniors

Safety wing: Best for digital nomads & health coverage

What do you guys think of travel insurances during this time? Let us know your favorites in the comments!

About the Author:
Ayishia is a self-proclaimed Charleston native and pseudo digital nomad. After quitting her job in 2020 on the belief that there’s more than one way to make a living, she now lives life on her own terms. Connect with her on her website ayishiaparsley.com

 

Please follow and like us:

Blog

Articles that you might like

November 25 2024
Breaking Barriers: The Importance of Travel for Black People & How to Choose the Right Travel Group

Traveling is not just about seeing new places; it’s about breaking barriers and expanding your horizons. 🌍 For Black people, …

November 12 2024
Top black brands you need in your suitcase!

At Luxe Tribes, we believe in the power of community, which is why we’re excited to share our top picks …

October 29 2024
Top 10 Must-Visit Destinations for 2025

Are you thinking about your 2025 travel plans? Us too! Whether you’re craving sun-soaked beaches, rich cultural experiences, or adrenaline-pumping …

October 1 2024
Cultural Festivals You Shouldn’t Miss

Cultural festivals bring millions of people together each year for good reason. They are an enriching opportunity to immerse yourself …

September 17 2024
Family-Friendly Travel Destinations

Soo… you’re in charge of planning the family trip… again?! But where do you go for a hassle-free luxe adventure …

September 3 2024
Spring Break Destinations Near the U.S.

Finally!! Spring break is approaching and we know all you can think about is where to go and soak up …

August 20 2024
Top Destinations for Black Female Travelers

Ready for your next adventure? Grab your passport and new outfits—here are the top destinations for Black female travelers! But …

July 24 2024
Detty December: AfroFuture Festival Ghana Edition

Let’s talk about Detty December Ghana edition and Afrofuture! Imagine a trip that revitalizes your spirit and deepens your connection …

July 9 2024
Top Destinations in Asia

Let’s be real, Asia is a continent so vast and diverse, with destinations that deliver! From adventures, relaxation and cultural …

July 2 2024
Top Destinations for New Year’s Eve Group Getaways

The way time is flying, it’s not too soon to start thinking about how you want to enter 2025. Look …

Subscribe to our newsletter

Subscribe and be the first to know about our latest travel deals , new trip launches, blog posts and more.

Social media & sharing icons powered by UltimatelySocial

Ready for your vacay with Luxe Tribes?

Please fill out the form below and a travel expert will get in touch with you within 1 day.

Ready for your vacay with Luxe Tribes?​

Please fill out the form below and a travel expert will get in touch with you within 1 day.

Ready for your vacay with Luxe Tribes?​

Please fill out the form below and a travel expert will get in touch with you within 1 day.

Ready for your vacay with Luxe Tribes?​

Before we continue, we need some information in order to connect you with a travel expert.

Ready for your vacay with Luxe Tribes?​​

Please fill out the form below and a travel expert will get in touch with you within 1 day.

Ready for your vacay with Luxe Tribes?​

Please fill out the form below and a travel expert will get in touch with you within 1 day.

Ready for your vacay with Luxe Tribes?

Please fill out the form below and a travel expert will get in touch with you within 1 day.