Golden Capitalist 
This summer, travel and insurance have changed. Those changes will affect the way you secure your vacation this year.
As the pandemic grows, a full vacation package will be different. The full family experience that includes flying and hotels will cost more. As the expenses of full-fledged vacations grow so will the expenses to insure your trips. In fact, it’s predicted that premium insurance will cost 8% more between the years 2021 – 2028.
Even if less people are getting infected, Covid-19 still affects travel insurance. The way Covid-19 affects travel is different from the last summer. For example, airlines have become more flexible. This means you don’t need insurance when you make a change to your travel plans. Plus, insurances now cover COVID treatments more than back in 2020.
The main issue now is flight delays. Another problem is that some destinations need foreigners to have a travel insurance. Plus, price tags should be considered, where travel insurance is actually expensive. Expect to pay between 5% and 10% on top of your trip price.
There’s a lot of info to digest. So below are some factors you should know if you plan on insuring a trip this year.
They are as follows…
1. Insurance is useful when you have a delayed flight and troubled summer
Due to the pandemic many flights are being delayed this summer. Travel insurance could be valuable in this case. The insurance can compensate you for the delays. It can also cover you in different ways too.
Experts advise pre-planning here. They see it best to consider a 24-hours delay for any flight you book.
So what’s to blame for the delays? Airlines are blaming factors like staff shortage. Regardless of reason, travel insurance should be a purchase. No matter the reason for the delay you will get a return, where insurance will always offer the compensation you seek.
Official warnings are something else to note. The U.S Transportation Department made an important warning to customers, where airlines are not bound by law to compensate flight delays. Airlines do not have to compensate for cancellations, refunding tickets or other fees. If an airline offers any of the compensations it is out of courtesy not law.
Still, you’re obliged a reimbursement in several cases. For example, you get food and important expenses if the delay is between 3 and 12 hours. Insurance will also allow you to cancel a trip if the delay is more than 24 hours.
Alternatively, if you are using European airlines, you should be aware of EU insurance rules. The European Union offers a specified compensation for delays and cancellations.
Credit cards like American Express’ Platinum card can provide reimbursements. These cards can offer up to $500 compensation for 6 hours delays.
2. Do not worry about the changing fees
The reason why customers opt for insurance is the fear of high changing fees. The fees for changing or cancelling a flight are $150 to $200 for domestic ticket. The penalties for international tickets are $200 to $700.
Currently, those penalties have been cancelled to encouraged travels mid-pandemic.
Regardless, some fees still exist for smaller airlines and cheaper tickets. Some airlines only reduce the changing amount without cutting them. Other airlines allow free changes to a certain timeline.
The final point here is that you get a refund for your future flights as credit. And if your new flight is more expensive you will pay the difference.
3. Do not worry about insurance not covering Covid-19 treatment
Many of travel insurance companies covered Covid-19 costs last summer. Insurance companies cover treatment costs during or before the insured trip.
This year, Covid-19 coverage is explicit in many policies. It’s a relief for many customers, giving them an opportunity to fly anxiety free.
It is important to mention that some limitations of last year are still around. For example, you cannot cancel a trip because out of fear of getting infected. You also cannot avoid a destination due to a lockdown or quarantine requirements.
4. More money means more coverage
The unknown circumstances of the pandemic make travelers pick pricy coverage packages. They’ll pick high priced options such as CFAR.
CFAR stands for (Cancel for Any Reason). This policy is a safer option for travelers to ensure their trips. But, other policies are very strict on how and when you can cancel a trip.
If you are worried about your post-pandemic travels, you should consider CFAR. With the growth of Covid-19 many customers are turning to that alternative. Before the pandemic, customers rarely chose CFAR. But the percentage of people using CFAR in 2020 was 19% and getting near to 27% in 2021.
CFAR coverage costs about 10% of your trip costs according to Allianz.
5. Travel is essential if you are going abroad
Skift research says that most summer travels in 2021 will be domestic.
Covid-19 infection levels are changing. Yet, most American citizens are afraid to go overseas because. In fact, most reports show that only 10% of U.S citizens plan on going overseas.
Many countries will ask for a recent COVID-19 negative test or a vaccination proof for entry. Some countries even require a quarantine period for safety. And in others travel insurance is a must to enter. Thus, tour insurance should be able to cover medical expenses and medical evacuation.
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