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Does travel insurance cover canceled trips? According to experts, the short answer is it depends on the policy and the situation.
Travel insurance is an invaluable tool for protecting your investment in a trip and ensuring peace of mind. However, navigating the myriad of options can be overwhelming.
In the past few years, BBB received thousands of complaints related to travel insurance, many of which occurred because the policy didn’t cover the cancellation caused by the coronavirus and/or travel bans to certain areas. According to the U.S. Travel Insurance Association, these insurance policies do not typically cover the cancellation of a trip out of fear of traveling or concerning travel advisories.
However, travelers who purchased policies that include Cancel For Any Reason (CFAR) coverage may still be able to recoup funds. Pandemics are often routinely listed as exclusions in policies, so read the fine print. In addition, travelers may also contact the airlines and other travel suppliers before filing a claim to see if those companies offer refunds, waivers, or other accommodations.
When thinking about purchasing travel insurance, consider these tips to make sure you get the coverage that best suits your needs:
- Understand the purpose of travel insurance. Travel insurance is designed to help with unexpected events, not foreseeable issues. For example, once a hurricane is forecasted, it becomes a "known event," and policies purchased after this date may not cover related cancellations.
- Review policy specifics. Policies can vary significantly. Before purchasing or attempting to file a claim, review what the policy does and doesn’t cover. Don’t hesitate to contact the insurance company directly if you have questions.
- Read the fine print. If you have CFAR coverage, verify the specific terms of this benefit before filing a claim. Understanding the policy wording is crucial to ensure you know what’s covered.
- Maintain flexibility in your plans. Be prepared for changes in dates, times, and arrangements. Flexibility can help you adapt to unexpected events more easily.
For more information
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