Travel vouchers or a cash refund? If you said vouchers, one travel insurer thinks you should reconsider.
Even though airlines are feeling additional pressure to offer a cash refund for a canceled flight, they’d probably prefer sidelined passengers to take a voucher so they can keep the cash in hand. When faced with that decision, travel insurance comparison site Squaremouth’s Karsara Barto says consumers need to do their homework to understand what they’re getting with a voucher.
“If you’re buying travel insurance now, it is important to understand that coverage may be impacted if you’re using a voucher to book your trip. Coverage varies depending on the provider and can be dependent upon the documentation from your travel supplier,” she told ConsumerAffairs.
Those variants may be few in number, but Barto urges travelers to hit the pause button and think about a few key considerations.
The value of the voucher may not be insurable
There’s a veritable plane full of travel insurance companies. Still, they’re not all alike, and they all have a clause here or there that’s particular to their coverage that consumers should scrutinize closely.
Some travel insurers lump vouchers in the same category as non-reimbursable expenses, like they do with reward points or frequent flyer miles. In this situation, Squaremouth says travelers should not pay to insure the value of their voucher because they may not be reimbursed if they wind up having to cancel their trip.
When ConsumerAffairs was working on our recent piece on airline refunds, a spokesperson for Airlines for America (A4A) pointed out that carriers were offering “future credit opportunities and other incentives” alongside the traditional voucher. While a “credit opportunity or other incentive” may sound like a viable consolation cocktail, it’s probably wise to call the travel insurance provider and make sure that any non-traditional incentive is covered just in case.
Read the full Consumer Affairs article online here: https://www.consumeraffairs.com/news/travel-vouchers-can-look-tantalizing-but-theyre-loaded-with-conditions-travelers-dont-take-into-consideration-051320.html