Do you have travel insurance?
Travel insurance may or may not help. But experts warn that it isn’t a magic bullet.
“In order for coverage to apply, the event impacting their trip must be listed within your insurance policy certificate,” says Kasara Barto, a spokeswoman for Squaremouth. “It is very important that travelers review their policy to make sure their concerns can be covered by their policy. The main reason claims are denied is because travelers file a claim for something that is not covered by their policy.”
What about your credit card? Don’t count on it covering your cancellation, either.
“Travel insurance offered through credit cards and other providers is unlikely to grant you a refund if you simply changed your mind about traveling,” says CreditCards.com industry analyst Ted Rossman. “Many airlines and hotels are canceling reservations and offering fee waivers in the most affected areas,” he adds. “That’s probably going to be your best option for getting your money back.”
A “cancel for any reason” policy can offer a partial refund if you decide to call off your vacation. But that insurance costs about twice as much as the standard “named perils” policy Barto was talking about.
“Though cancel for any reason allows you to cancel your plan for any reason, it increases the plan cost,” notes Jeremy Murchland, president of Seven Corners, a travel insurance company. “Also, it’s important to understand the requirements for cancel for any reason.”
Here are the requirements for a cancel for any reason policy
- Purchase a cancel for any reason policy as soon as possible after you make your first trip deposit. It’s typically only available within a set number of days — usually within 15 to 20 days.
- Make sure you insure all your nonrefundable and prepaid trip expenses.
- Be prepared to cancel your trip at least two days before your scheduled departure.
Bottom line: If you’re planning a vacation — but haven’t booked anything yet — you still can do something. Find a “cancel for any reason” policy from a reputable travel insurance source. You can purchase a policy through a company like AIG Travel, Allianz Travel Insurance, Arch RoamRight, Generali Global Assistance, Travelex or through a travel insurance site like G1G Travel, Seven Corners, TravelInsurance.com or Squaremouth.
Read the full Forbes article online here: https://www.forbes.com/sites/christopherelliott/2020/02/27/should-i-cancel-my-trip-because-of-coronavirus/#29aba77b76f1