If you’re like us, you haven’t purchased insurance for a domestic trip in a long time — if ever. Well, maybe you opted for insurance to cover that splurge on an Alaska cruise or for that pricey vacation home you rented for a multigenerational trip. But, by in large, you probably passed up the insurance for close-to-home vacations. Then came 2020 and the novel coronavirus, which causes the disease COVID-19. With infection rates still on the rise as summer starts, more and more travelers are deciding to invest in trip insurance for their upcoming vacation plans.
And, this isn’t just anecdotal information we’re going on. Insurers are noting an increase in the number of policies they are selling for domestic trips. Squaremouth.com, a travel insurance portal where you can compare policies side-by-side to find the best option for your circumstances, says that “domestic trips now comprise 57% of all insured travel throughout 2020, compared to just 12.3% in 2019.” This is interesting since the company also reports that its seen a 90% decrease in international travelers throughout the remainder of this year, compared to only a 5% decrease in the number of domestic travelers.
That tracks with what TPG is seeing: a strong desire to travel somewhere this summer — even if it’s local or regional. In fact, the popularity of road trips from big cities like Chicago, New York City and Washington, D.C. are on the rise as are vacation home rentals — both vacation types that allow you to maintain social distance if you so choose.
Since domestic travel is on the rise, now is the time to think about your insurance options. The type of coverage you select will be different from what you’d want for an international trip so it makes sense to think things through now and draft your domestic insurance game plan. Here are some tips.
Don’t pay for more medical coverage than you need
When traveling overseas, carrying adequate medical coverage is very important. If you’re injured or get sick in a foreign country, you want insurance that covers treatment since not everyone’s health insurance policy extends coverage outside of the United States. It’s another matter when you’re traveling domestically and have a health insurance policy that’s in force.
According to Squaremouth.com, “Most U.S. health insurance providers can cover emergency medical expenses for travelers remaining in the U.S., but require a deductible to be paid upfront.” If that’s your situation, Squaremouth.com suggests that you buy a travel insurance policy with minimal medical benefits that will cover your specific deductible. For example, if your health insurance policy has a deductible of $2,500 that you haven’t met yet, look for a policy that offers medical coverage up to that number. You’d be reimbursed for your out-of-pocket deductible and then your health insurance policy would kick in to cover the rest of the bill.
When searching on SquareMouth, look for its “USA Only” policies sold through Tin Leg. These packages are designed to include domestic cancellation coverage and minimal medical benefits at an affordable price.
Read the full The Points Guy article online here: https://thepointsguy.com/guide/tips-insuring-domestic-trips/