How travel insurance can (and can’t) help
Simply wanting to cancel or change a trip due to fear or worry is not something that is typically covered by most travel insurance policies, according to Megan Moncrief, chief marketing officer for travel insurance search and review site Squaremouth.
“In order for an insured [person] to be covered to cancel, the event that is impacting their trip must be explicitly listed within their insurance policy certificate,” said Moncrief. “Canceling because they are too scared or concerned to travel isn’t listed under a standard trip cancellation policy. The only option for travelers who want this type of flexibility, who otherwise are not outright impacted, is a Cancel For Any Reason policy.”
Cancel For Any Reason (CFAR) is an optional upgrade to a travel insurance policy that covers cancellations for reasons not otherwise covered by a standard travel insurance “such as fear of traveling due to the coronavirus or simply not wanting to travel to a country that may be affected,” said Moncrief.
The CFAR upgrade has to be purchased within 7 to 21 days of making the initial trip deposit and it will reimburse travelers for up to 75 percent of their trip cost—for a price. CFAR coverage typically costs between 5 and 10 percent of the total trip cost. To get a sense of what that means in dollars and cents, Moncrief said that so far this year, the average cost for a policy with CFAR coverage was $489, and the average cost of all policies purchased through Squaremouth was $291.
The bottom line when it comes to coronavirus concerns: Either splurge for the CFAR coverage, which will cost you but will also help you recuperate some funds if you decide to change your plans, or skip the coverage altogether because other than CFAR coverage, no other travel insurance will help if you decide to change or cancel your trip simply because you are worried about the outbreak.
Read the full AFAR article online here: https://www.afar.com/magazine/need-to-change-or-cancel-your-travel-plans-due-to-coronavirus-heres-what-you