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How Has Pandemic Made Travel Insurance More Consumer-friendly?

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People who purchased travel insurance in early 2020 found that these policies have little to offer when it comes to the global pandemic that has dramatically upended the world upside down.

How Has Pandemic Made Travel Insurance More Consumer-friendly?

The world has changed a lot since, and so has travel insurance in 2021. Considering the complexities and fine print of the insurance companies, the answer to how much travel insurance was able to cover such conditions involving the pandemic isn’t that straightforward. The bottom line is that US consumers will get more benefits from the travel insurance policy than they would have gotten before. As per the change in rules of the insurance, there was an increase in insurance coverage considering the pandemic. 

How Has Pandemic Made Travel Insurance More Consumer-friendly

After a year that brought travel to its knees and decimated this industry in the wake of the pandemic, there is good news for globetrotters. The travel insurance policy now covers Covid-19 to some extent so that they can travel without much worry with proper precautions.

Travel insurance sales were booming in the United States before the start of the pandemic.

In 2019, the US Travel Insurance Association study states that Americans spent nearly $3.8 billion on travel insurance in 2018, including the ones for trip interruption and cancellation, medical evacuation in an emergency, and other medical conditions. The number was increased by 40.9% in 2016 as per the study.

BACKGROUND

The Covid-19 pandemic was an event that was unprecedented by anyone around the world. As per the chief marketing officer of the travel insurance comparison site SquareMouth, Megan Moncrief, said very few insurance plans protect travelers from the financial losses that the consumer faced for not being able to travel or trips that were interrupted by the pandemic. The main reason being that those policies didn’t cover the pandemic. 

Moncrief said that most of the policies that covered these trips were canceled by the government’s travel bans and CDC alerts, but many such policies didn’t cover cancellations arising out of any decisions taken by the government. Due to this, travelers faced losses.

ADAPTATION OF POLICIES TO COVER THE PANDEMIC

Moncrief said that the changes in the industry that were brought by the pandemic become widespread in March in the United States. Insurance providers began to re-evaluate the policies to change as per the current conditions in the world.

Today, many leading insurance provider companies like Berkshire Hathaway Protection Plan, AXA Assistance USA, Generali, and Seven Corners have brought changes in their plans to include conditions of Covid-19 or any other virus or illness.

Out of 20 insurance providers, 19 provide medical benefits on SquareMath to a person purchasing insurance. It covers an individual who is diagnosed with the Covid-19 virus during their trip as long as the policy is bought before the diagnosis of the same. Additionally, 13 insurers offer cancellation coverage for contracting the virus before going on the trip.

But it must be noted that the current travel insurance policies only provide trip cancellation and medical cost reimbursement only if one contracts Covid-19, as said by Stan Sandberg, who is the co-founder of travel insurance comparison online portal, TravelInsurance.com.

Another to note that the necessary quarantine imposed after one has booked or paid for the trip is not covered if they are imposed after arriving at the destination, as said by Stan Sandberg. But some insurance policies do cover the costs for quarantine travel on contraction of the virus while traveling. Like, if one has traveled to Mexico and contracted the virus, then the policy will provide coverage. So be sure to check out the terms and conditions properly before buying a policy.

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