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The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
Andrea M. Rotondo has traveled to 50+ countries using points and miles. She's a luxury, small-ship cruise expert and hotel maven who can share the not-to-be-missed spots in her adopted home state of Florida. She will also talk all day long about her ancestral homeland: Italy.
June 20, 2020 • 7 min read
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don't cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.Editorial disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
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Quick summary
Domestic travel insurance is seeing increased demand due to changing travel patterns and ongoing health concerns.
Travelers are advised to tailor medical coverage for domestic trips, often needing only enough to cover health insurance deductibles.
Trip cancellation coverage can protect prepaid, nonrefundable expenses if plans change for covered reasons.
'Cancel for Any Reason' (CFAR) add-ons allow broader cancellation flexibility, though they come at a higher cost and partial reimbursement.
What to consider
CFAR coverage typically must be purchased within 14–21 days of the initial trip payment and requires insuring the full trip cost.
CFAR policies generally refund only 50% to 75% of trip expenses and require cancellation at least two to three days before departure.
Many standard policies exclude pandemics, so review policy details carefully to ensure adequate protection.
What you'll miss from the article
Detailed guidance on matching insurance types to your needs and step-by-step tips for maximizing cancellation coverage flexibility.
Generated by AI with support from our editorial team.
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If you're like us, you haven't purchased insurance for a domestic trip in a long time -- if ever. Well, maybe you opted for insurance to cover that splurge on an Alaska cruise or for that pricey vacation home you rented for a multigenerational trip. But, by in large, you probably passed up the insurance for close-to-home vacations. Then came 2020 and the novel coronavirus, which causes the disease COVID-19. With infection rates still on the rise as summer starts, more and more travelers are deciding to invest in trip insurance for their upcoming vacation plans.
And, this isn't just anecdotal information we're going on. Insurers are noting an increase in the number of policies they are selling for domestic trips. Squaremouth.com, a travel insurance portal where you can compare policies side-by-side to find the best option for your circumstances, says that "domestic trips now comprise 57% of all insured travel throughout 2020, compared to just 12.3% in 2019." This is interesting since the company also reports that its seen a 90% decrease in international travelers throughout the remainder of this year, compared to only a 5% decrease in the number of domestic travelers.
That tracks with what TPG is seeing: a strong desire to travel somewhere this summer -- even if it's local or regional. In fact, the popularity of road trips from big cities like Chicago, New York City and Washington, D.C. are on the rise as are vacation home rentals -- both vacation types that allow you to maintain social distance if you so choose.
Since domestic travel is on the rise, now is the time to think about your insurance options. The type of coverage you select will be different from what you'd want for an international trip so it makes sense to think things through now and draft your domestic insurance game plan. Here are some tips.
When traveling overseas, carrying adequate medical coverage is very important. If you're injured or get sick in a foreign country, you want insurance that covers treatment since not everyone's health insurance policy extends coverage outside of the United States. It's another matter when you're traveling domestically and have a health insurance policy that's in force.
According to Squaremouth.com, "Most U.S. health insurance providers can cover emergency medical expenses for travelers remaining in the U.S., but require a deductible to be paid upfront." If that's your situation, Squaremouth.com suggests that you buy a travel insurance policy with minimal medical benefits that will cover your specific deductible. For example, if your health insurance policy has a deductible of $2,500 that you haven't met yet, look for a policy that offers medical coverage up to that number. You'd be reimbursed for your out-of-pocket deductible and then your health insurance policy would kick in to cover the rest of the bill.
When searching on SquareMouth, look for its "USA Only" policies sold through Tin Leg. These packages are designed to include domestic cancellation coverage and minimal medical benefits at an affordable price.
Trip cancellation coverage can be an integral part of an insurance policy. This coverage reimburses you for nonrefundable, prepaid trip expenses when a trip must be canceled or altered due to a covered situation. So, for example, if a travel companion falls ill and can't make the trip and everyone in your group decides to cancel, cancellation coverage will protect your investment.
Don't forget that many premium credit cards also convey some type of trip cancellation and interruption insurance. Review what coverage you may already have if you carry any of these cards: Chase Sapphire Reserve®, Chase Sapphire Preferred® Card or The Platinum Card® from American Express.
InsureMyTrip.com recommends a Cancel for any Reason policy add-on for anyone nervous about traveling in the age of coronavirus. The company says, "While some standard trip cancellation policies may cover physician-ordered quarantine or contracting the virus (unless pandemics are specifically excluded), these policies do not cover COVID-19-related cancellations due to fear of travel or any government-ordered border shutdowns. That's why a cancel for any reason upgrade is recommended."
As mentioned, many traditional trip insurance policies exclude pandemics and epidemics, so coronavirus and COVID-19 are not covered reasons for cancellation and reimbursement. However, many insurers sell an add-on "upgrade" called Cancel for Any Reason. It costs extra -- usually 40–60% more than a standard policy -- but lets you cancel up to two to three days before your trip for just about any reason. As always, read the policy fine print carefully for any exclusions.
With CFAR, you won't get all of your money back though. Coverage generally only refunds 50% to 75% of your trip costs. Still, if it's an expensive vacation and you want the peace of mind to cancel if you get cold feet due to coronavirus concerns or just about anything else, CFAR is the way to go. And, remember, we are entering hurricane season so if you have travel plans to the Southeast U.S. or Caribbean, CFAR is a powerful ally if you want to cancel a trip due to the threat of bad weather from a tropical storm or hurricane.
InsureMyTrip.com has a few tips when it comes to CFAR. First and foremost, know that you need to insure your entire trip costs. So, add up all of your prepaid, nonrefundable trip expenses and provide an accurate trip cost when asking for insurance policy quotes. Second, don't procrastinate. You must buy CFAR coverage within 14–21 days of making an initial trip payment or deposit. And, finally, understand the cancellation timeline. You can't cancel your trip 30 minutes before boarding your flight. Most CFAR policies require that you cancel at least two to three days in advance.
When it comes to trip insurance, only you can decide if it's worth the investment. If the nonrefundable trip costs are low, you may decide to "self-insure" and eat any losses if a trip must be canceled. But, consider insurance if you're spending a fair amount of money on a vacation and are concerned that you may need to cancel. This is especially important if your cancellation reason is not normally covered by traditional trip insurance policies. In that case, you may need to invest in a policy with a Cancel for Any Reason upgrade.
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
