As uncertainty over the coronavirus outbreak grows, skittish travelers are hedging their bets on future trips with insurance policies that come with an escape clause.
Standard travel insurance policies will not cover a trip cancellation due to fear of contracting the coronavirus. Only by upgrading to a policy that includes a Cancel for Any Reason benefit can fearful travelers obtain the coverage they are searching for.
“We’ve seen a surge in policy sales with Cancel for Any Reason selected as an optional upgrade,” says Stan Sandberg, co-founder of TravelInsurance.com. In January and February of this year, sales of CFAR policies have increased by roughly 150 percent compared to the same period last year, notes Sandberg.
Other travel insurance companies have also experienced an increased interest in CFAR. “Since the coronavirus outbreak became widely known in late January, we have seen a 108 percent increase in policies purchased with the Cancel for Any Reason upgrade this year,” says Megan Moncrief, chief marketing officer at Squaremouth.com, another travel insurance comparison site.
Adding a CFAR upgrade is not cheap. A standard travel insurance policy will cost between seven to 10 percent of the insured trip cost, according to Moncrief.
Read the full Forbes article online here: https://www.forbes.com/sites/suzannerowankelleher/2020/02/24/amid-coronavirus-fears-travelers-are-upgrading-to-cancel-for-any-reason-insurance-plans/#e62d1852f3a9