Nasdaq, Feb 18, 2021 – Keep An Eye On These Travel Insurance Trends In 2021

Nasdaq, Feb 18, 2021 – Keep An Eye On These Travel Insurance Trends In 2021

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On Jan. 21, 2021, the CDC issued a new rule that all air passengers who arrive in the U.S. from a foreign country must get tested for Covid no more than three days before their flights depart. And you must have a negative result—or documentation showing you’ve recovered from Covid-19—that you give to the airline before boarding the flight. This includes Americans coming back to the U.S. from abroad.

The CDC’s new rule hasn’t slowed down U.S. travelers who plan to travel internationally. More than 70% of bookings since the CDC’s announcement are for international destinations, according to Squaremouth, a travel insurance comparison website.

“We expected to see an immediate shift to domestic travel and a drop in international bookings, due to the added complication of coordinating a Covid test abroad, but that hasn’t been the case,” says Squaremouth spokesperson Megan Moncrief.

Squaremouth’s data shows that travelers are booking international trips 24% sooner than before the pandemic. Through most of the pandemic there has been a trend of last-minute trip bookings, most likely due to uncertainty around travel, changing quarantine requirements and workers with remote work flexibility.

U.S. travelers booking international trips are also spending more, according to Squaremouth. Travelers are insuring about $1,000 more per trip and 31% more on travel insurance.

Trip Cancellation Insurance Is a Must-Buy

“Trip cancellation has always been the primary driver of travel insurance purchases,” says Moncrief. “We’ve seen this number range from 80% to 90% of our sales, but never this high.”

Trip cancellation insurance reimburses the prepaid and non-refundable costs for your trip if you’re unable to travel due to an unforeseen circumstance. “Unforeseen circumstances” typically include serious injuries, natural disasters, death of you or a traveling companion, severe weather that makes a travel service unable to operate.

Generally, travel insurance companies consider pandemics a foreseeable event. But many travel insurance companies sell policies with Covid-related coverage, which makes trip cancellation a must buy. Ninety-five percent of travel insurance policies for trips in 2021 include trip cancellation coverage, according to Squaremouth.

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