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Oct 26, 2021 • 5 min read
After 18 months of pandemic-related travel restrictions, you may be eager to act on your pent-up wanderlust. However, the situation and travel rules are continuously evolving. Therefore, before heading out, it is crucial to have a travel insurance plan that safeguards your investment in a long-awaited journey.
A comprehensive travel insurance plan will reimburse pre-paid trip costs and non-refundable deposits if you have to cancel or interrupt your trip. It also covers trip delays, baggage loss, or the need for medical expenses and transportation due to medical evacuation. Furthermore, your policy will reimburse costs based on “covered reasons” such as death, illness or injury, serious family emergencies, unplanned jury duty, military deployment, acts of terrorism, or the travel supplier going out of business.
Moreover, COVID-19 has introduced an additional checklist of requirements for your usual insurance needs. It is essential to ensure your travel insurance plan includes coverage for COVID-19 medical expenses and losses related to illness. Your policy should also account for quarantine costs should you need to self-isolate after testing positive for the virus.
What to Look For in COVID-19 Insurance Coverage
When searching for a travel insurance plan that covers COVID-19, it is vital to conduct thorough research and carefully read the fine print of your policy.
Seek a travel insurance product that protects your non-refundable, prepaid expenses if you must cancel your trip due to an illness caused by COVID-19. Additionally, your policy should cover emergency medical treatment and transportation for emergencies. With regards to COVID-19 coverage, ensure that your policy covers medical care, prescriptions, hospitalization, and quarantine expenses.
According to Sasha Gainullin, CEO of battleface, “The type of coverage you should look for depends on your personal needs, travel dates, and the trip type.” He points out that some travel insurance companies have excluded COVID-19 coverage as it has been labeled a “known/foreseeable event,” while others may exclude pandemics altogether.
“It is essential to seek plans that include medical and quarantine expenses as well, as this will be critical if you become ill while traveling,” Gainullin states.
Another key tip is to confirm that there are no exclusions based on your travel destinations, especially regarding countries under government-issued travel warnings.
“If a traveler feels uncertain, I advise speaking with the travel insurance company directly. They can review the policy details with you and confirm that all necessary coverage options are included,” he adds.
Is Getting Coverage Dependent on Vaccination?
While being fully vaccinated before traveling is recommended, vaccination is not a prerequisite for purchasing a travel insurance policy, according to Daniel Durazo, spokesperson for Allianz Partners USA.
What Medical Costs Are Covered by Travel Insurance?
Travel insurance generally covers both medical treatment and emergency medical transportation costs. A typical U.S. health insurance plan, as well as Medicare, usually does not cover overseas medical expenses; thus, it is advisable to verify with your personal health insurance provider if any global coverage is available.
“While losing the cost of a trip due to an unexpected cancellation is painful, the financial ramifications of paying for expensive emergency medical treatment or transport can be devastating,” Durazo warns.
Under a travel insurance plan, medical costs can encompass doctor visits, pharmacy expenses, imaging charges, and hospitalization if needed. Other covered expenses may include transportation to medical care and medications.
Covering Unexpected Quarantine Costs Due to COVID-19
Many international destinations now mandate that visitors purchase travel insurance that covers unexpected quarantine costs. Allianz Travel Insurance has incorporated coverage in many plans, including reimbursement for accommodations incurred during quarantine if you or a traveling companion is individually ordered to quarantine during your trip, Durazo asserts.
This coverage typically encompasses costs for additional food, lodging, and transportation while quarantined. Additionally, specific Allianz plans provide trip interruption and travel delay benefits if you or your travel companion is denied boarding due to suspected illness.
The benefits for quarantine coverage can vary among carriers. For instance, select Trawick International plans offer $2,000 in quarantine benefits, which can be increased up to $7,000 for an additional charge.
Pre-flight COVID-19 Testing Coverage
Your plan may include coverage for flights if you are denied entry at a border due to not passing a health inspection. Trawick’s travel insurance plans covering COVID-19 would also cover expenses if you fail a health inspection. Notably, the plan would cover the costs associated with failing a PCR test required to return to the United States, such as quarantine expenses abroad.
It is critical to note that the actual cost of the PCR test is not typically covered by your policy, but the associated loss due to a negative test is.
Complying with COVID-Specific Insurance Requirements
Before embarking on international travel, it is important to verify the insurance coverage requirements for your destination. Countries such as Spain, Turks and Caicos, and Thailand require COVID-19 insurance coverage.
You should first review the specific COVID regulations of the country you are visiting. Some countries necessitate that travelers provide proof of insurance covering COVID-19 related expenses from a third party, explains Foster. Providing proof of coverage is crucial; thus, travelers must ensure they obtain documentation from their insurance provider showing that their policy covers COVID-19 related expenses for customs officials.
If you arrive in a destination requiring proof of insurance for COVID-19 medical expenses and quarantine costs, and you do not possess a suitable policy, you risk being denied entry.
For additional information on COVID-19 and travel, consider checking relevant health information resources.
