With more travel being canceled, both by carriers and by travelers, the travel insurance industry has become a tangle of possible outcomes, and in many cases may not even be available. More than half of the UK’s insurers have stopped writing new policies.
As we reported three weeks ago, once the World Health Organization declared Covid-19 to be a pandemic, most travel insurance companies pivoted Covid-19 from an ‘unforeseen event’ covered by insurance (at least for those already traveling) to a foreseen risk that is not covered. That is, once it was declared a pandemic, you can no longer expect to travel safely, and it’s on you, not the insurer.
For those caught in that moment, the dilemma became a choice between traveling without protection, or canceling—but in many cases, canceling meant losing the value of the trip unless the policy included ‘cancel for any reason’ coverage. Many people pass up that option even when available because it adds significantly to the cost.
One ray of light: some carriers, including AIG, which operates under the TravelGuard brand, advises policyholders that if they are not eligible for the policy’s benefits, they may still be able to get a refund of the premium or a voucher toward a future policy. As is always true with insurance, regulations vary; consult your carrier.
