ST. PETERSBURG, Fla. May 12, 2020 — In response to the COVID-19 pandemic, airlines, cruise lines, and tour operators are issuing countless vouchers for canceled trips. Before travelers accept a voucher, travel insurance comparison site, Squaremouth, shares three reasons why they shouldn’t accept vouchers for canceled trips.
Voucher Value May Not Be Insurable
Some travel insurance providers categorize vouchers as non-reimbursable expenses, the same as reward points or frequent flyer miles. In this case, travelers should not pay to insure the value of their voucher as they may not be reimbursed if they have to cancel their trip.
If Travel Supplier Collapses, Refunds for Vouchers are Unlikely
With major travel providers like Norwegian Cruise Line and Virgin Atlantic warning of possible bankruptcy, travelers may turn to travel insurance to protect their voucher value. However, if a travel supplier ultimately declares bankruptcy before a trip is booked and insured, travelers with outstanding vouchers may have little or no recourse.
Time Sensitive Benefits May Not Apply
For travelers buying insurance now for a previously planned trip, certain time-sensitive benefits, such as pre-existing condition coverage and Cancel for Any Reason, are only available for a limited time period after a trip is initially booked. If any portion of the new trip was rescheduled and not canceled outright, the original trip booking date will still apply and travelers may not be eligible for time-sensitive benefits.
For regularly updated information about Covid-19 and travel insurance, please visit our Covid-19 travel insurance information hub.
Notes to editors
Available Topic Expert: Megan Moncrief, Chief Marketing Officer, is available for comment and interview. email@example.com (727) 378-0938
About Squaremouth: Squaremouth.com has insured over 2 million travelers. Using Squaremouth’s intuitive quoting and comparison engine, award-winning support team, and verified customer reviews, travelers can save time and money to find the best travel insurance policy for their trip.