US-based travel insurance comparison site Squaremouth has revealed some interesting figures that demonstrate how the general public is reacting to travel restrictions imposed as a result of Covid-19, with ‘caution’ being the new watchword for many.
The company’s latest search and sales results are showing that there has been a dramatic 90-per-cent decrease in the number of policies being bought for trips this summer, which serves to highlight the extent to which international travel, for most people, has been brought to an abrupt end. Domestic trips accounted for 48 per cent of trips planned by Squaremouth visitors, which is up from just 15 per cent in 2019. Even those planning international travel aren’t actually going that far from US borders either, with most planning to head to Mexico or Canada.
Unsurprisingly, Covid-19 is the top concern for travelers that are still planning on traveling either domestically within the US or further afield as borders start to re-open. According to Squaremouth, 36 per cent of customers were searching for a travel insurance policy that specifically included cancellation or medical coverage in the event that they contract the virus, or alternatively if they are quarantined as a result of an outbreak local to where they are staying.
Also of no great surprise to learn, is the fact that ever-more popular ‘cancel for any reason’ (CFAR) policies are now in very high demand. Squaremouth pointed out: “Cancel for any reason policies cost 40-per-cent more than standard travel insurance policies but are the best option for Covid-related cancellation coverage.” The data shows that one third of all policies that have recently been purchased for travel this summer include CFAR benefits, and the percentage of travelers choosing to purchase this kind of policy has increased by a whopping 680 per cent year-on-year.
Squaremouth confirmed: “Travelers planning summer vacations can still purchase a policy that can provide coverage for some top Covid-19 concerns, including cancellation and medical coverage if a traveler contracts the virus or is quarantined.” This approach contrasts with that of insurers in the UK, who are generally not providing any insurance for Covid-19 related claims for new policies being issued.
Read the full ITIJ article online here: https://www.itij.com/latest/news/us-travellers-invest-cfar-protection