Special to Agency Checklists
Purchases of travel insurance policies are surging across the U.S. as fears about the global impact of the coronavirus continue to grow, especially with spring break vacations just around the corner for many Massachusetts families.
“During the first two months of this year, we have seen sales of travel policies with Cancel for Any Reason (CFAR) coverage increase by more than 100 percent versus the same period in 2019,” Mark Friedlander, director of corporate communications at the Insurance Information Institute, told Agency Checklists.
Even with CFAR coverage, Friedlander said consumers should read their policy very carefully because it has numerous restrictions. It also costs significantly more than a standard travel policy, which typically runs 5-10 percent of the trip’s cost.
“CFAR coverage can increase the cost of your travel insurance coverage by 40 to 60 percent and it generally pays out less than the trip’s total cost, somewhere in the 50-75 percent range depending on the policy,” Friedlander said. “Also, with a CFAR policy, you have to cancel at least 48-72 hours before your departure date in order not to void the coverage.”
Friedlander noted that standard travel insurance policies generally include trip cancellation due to illness, as well as lost luggage coverage and emergency medical care if the policyholder gets sick on the trip.
“You can’t cancel a standard travel policy due to fear of travel to a particular area or country. And standard policies will not let you cancel for any reason when an epidemic or pandemic has been enacted,” he added.
To learn more about travel insurance coverage, please visit the Insurance Information Institute.
Purchases of travel insurance policies are surging across the U.S. as fears about the global impact of the coronavirus continue to grow, especially with spring break vacations just around the corner for many Massachusetts families.
“During the first two months of this year, we have seen sales of travel policies with Cancel for Any Reason (CFAR) coverage increase by more than 100 percent versus the same period in 2019,” Mark Friedlander, director of corporate communications at the Insurance Information Institute, told Agency Checklists.
Even with CFAR coverage, Friedlander said consumers should read their policy very carefully because it has numerous restrictions. It also costs significantly more than a standard travel policy, which typically runs 5-10 percent of the trip’s cost.
“CFAR coverage can increase the cost of your travel insurance coverage by 40 to 60 percent and it generally pays out less than the trip’s total cost, somewhere in the 50-75 percent range depending on the policy,” Friedlander said. “Also, with a CFAR policy, you have to cancel at least 48-72 hours before your departure date in order not to void the coverage.”
Friedlander noted that standard travel insurance policies generally include trip cancellation due to illness, as well as lost luggage coverage and emergency medical care if the policyholder gets sick on the trip.
“You can’t cancel a standard travel policy due to fear of travel to a particular area or country. And standard policies will not let you cancel for any reason when an epidemic or pandemic has been enacted,” he added.
To learn more about travel insurance coverage, please visit the Insurance Information Institute.
