Does travel insurance cover pandemics?
More than a quarter of the population of the U.S. has received at least one COVID-19 vaccination as of this week, and all those shots in arms seem to be directly correlating to a surge in travel.
In fact, the number of passengers in U.S. airports reached their highest numbers in more than a year last week according to the Transportation Security Administration (TSA). Whether you're vaccinated or not, concerns about new strains of the coronavirus are high, so it's not surprising to hear that inquiries about travel insurance have also hit their highest level since the pandemic began, according to InsureMyTrip.
However, "there is a big misconception about what travel insurance does — and doesn't — cover," said Meghan Walch, pandemic travel insurance expert for InsureMyTrip. In the company's latest poll of travel insurance agents, the vast majority of questions (a whopping 97%) from would-be travelers are regarding how travel insurance may or may not cover COVID-19 related travel concerns.
So, does your travel insurance cover a pandemic? Here's everything you need to know.
Why travel insurance usually doesn't cover epidemics and pandemics
In general terms, regular travel insurance policies cover the "unknowns" — for example, an accident you couldn't have anticipated in advance, such as falling while you were hiking and breaking your leg — and not losses caused directly or indirectly by known or foreseeable events (in this case, an epidemic complete with government travel advisories).
Similar to a weather event, once something becomes "known" it may not be a covered reason for cancellation if a traveler purchases insurance after that date.
In other words, if you purchased travel after the World Health Organization (WHO) declared COVID-19 a pandemic, you've entered "known" territory, the same as deciding to fly into the eye of a hurricane.
Related: Avoiding outbreaks isn't covered by most travel insurance
What travel insurance normally covers
"Essentially, travel insurance covers unexpected events during your travels and pre-departure starting the effective date of your policy," said Christina Tunnah, general manager of the Americas of travel insurance company World Nomads.
According to Tunnah, regular travel insurance breaks down into three main categories:
- The protection of your pocketbook (investment in flights, delays, interruption, cancellation)
- The protection of yourself (emergency medical and evacuation)
- The protection of your belongings (delayed and lost bags, theft)
Many credit cards also offer travel protection. Covered situations, maximum coverage amounts and eligible expenses vary across the cards that offer this benefit. Covered situations typically include accidental bodily injury; loss of life or sickness; severe weather; terrorist action or hijacking and jury duty or a court subpoena that can't be postponed or waived.
Related: The best credit cards with complimentary travel protection
Are some insurers covering COVID-19?
Not all the news on the COVID-19 insurance front is negative. According to Walch, many traditional travel insurance policies will cover your COVID-19 related travel concerns if you meet regular guidelines.
Examples of COVID-19 coverage in traditional plans include:
- If you must visit a doctor or hospital during a trip due to a COVID-19 illness
- If you get sick with COVID-19 and must cancel a trip
- If a physician orders you to quarantine before a trip
- If you lost a job during the coronavirus pandemic by no fault of your own
In addition, some plans are now offering higher travel delay limits in order to help with additional accommodation expenses due to a covered quarantine, adds Walch.
And, there are also some individual insurers that are simply covering COVID-19 outright. For example, World Nomads' plans cover the diagnosis of COVID-19 the same as any other illness with benefits that could include emergency medical care, emergency medical evacuation, trip delay and trip interruption coverage if you contract COVID-19 while traveling.
How to find a plan that covers COVID-19
First of all, you should look in the exclusion section to see if pandemics or epidemics are mentioned. If so, you'll need to shop around for a different policy, said Tunnah.
Even though travel insurance companies may offer COVID-19 sickness coverage, they typically don't offer benefits for every circumstance.
"Every policy is different, so you'll want to get a good grasp of a plan's coverage before you purchase it," Tunnah explained. Some of the questions you should ask yourself are: Does the plan cover emergency medical and evacuation expenses if I contract COVID-19? What are covered reasons for cancellation? What if my trip is delayed or interrupted because of a COVID-19 event?
If you're getting confused from reading the legal jargon of a policy, you can contact the customer service department of your travel insurance company, Tunnah advised. Representatives should be able to provide plain English explanations of coverage and help you identify a plan that meets your specific trip needs.
To see multiple options in one place, InsureMyTrip has a COVID-19 coverage tool that allows you to compare different policies.
Here's what you should be looking for according to the company:
- Trip cancellation coverage: While traditional trip cancellation does not allow a traveler to cancel a trip due to COVID-19 fears, it may cover a traveler in the event they get sick from COVID-19 and must cancel a trip.
- Trip interruption coverage: In the event a traveler gets sick from COVID-19 and the trip is interrupted, this coverage may apply.
- Cancel for any reason coverage: If eligible, this protection allows travelers the option to cancel a trip due to concerns over COVID-19, whereas traditional trip cancellation coverage does not (see below for more details).
Cancel for any reason insurance could be your best option
Cancel for any reason, also known as CFAR in the insurance industry, is an add-on to certain traditional trip insurance policies.
While travel insurance policies can offer a range of inclusions (think: medical evacuation, trip cancellation due to foreign or domestic terrorism or rental car damage) not every eventuality is included in all insurance policies. For example, some trip insurance plans cover employment layoffs while others do not. Some policies may have robust emergency medical coverage while competitors don't. That's why it's so important for you to select a plan that meets your specific needs for each trip.
One commonality among insurance policies? A long lists of exclusions. That's where a CFAR policy comes into play.
"InsureMyTrip strongly recommends travelers strongly consider a CFAR upgrade," said Walch. This upgrade offers the most trip cancellation flexibility and is the only option available to cover "fear of travel" (traditional travel insurance does not offer cancellation coverage for "fear of travel," whether related to COVID-19 or not).
If eligibility requirements are met, reimbursement is typically up to 70% of the pre-paid, nonrefundable trip cost. "Just be aware that this add-on will increase the cost of the plan," Walch advised.
Some countries are requiring mandatory insurance for entry
Even in pre-pandemic times, many countries required travelers to have personal medical insurance to visit (although you weren't necessarily required to provide proof). Now, with pandemic concerns, some countries are instituting mandatory COVID-19 insurance for entry.
The Bahamas is one example. Travel health insurance is required for all incoming visitors and the cost for the mandatory insurance is included in the price of the Travel Health Visa all tourists are required to apply for before entry. Aruba is another example where COVID-19 insurance is purchased onsite at arrival and mandatory for entry.
Note that these insurance coverage policies just are for medical coverage, so travelers will still need additional coverage to cover non-health-related expenses such as travel delays or lost baggage.
Bottom line
If you're planning on traveling during a pandemic, don't assume that your usual travel insurance will cover you. Be sure to compare different insurance policies. and strongly consider Cancel For Any Reason insurance if you want to make sure your trip costs are covered.
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
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- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
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Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.