The summer of 2022 may see the first boom in destination travel since the onset of the COVID-19 pandemic. Many individuals and families have been stockpiling vacation funds for two years and now as restrictions lift and anxieties ease, find themselves eager to embark on luxury vacations. At the same time inflation is on the rise, meaning that the cost of travel today has eclipsed similar costs in 2019—the last summer during which travelers could move about the world unencumbered.
We asked our partner, Yonder Travel Insurance, to share information and insights to help customers make the most of their vacation experience while protecting themselves as much as possible from potential financial loss.
Says Beckah Morris, Operations Director at Yonder, “We’re seeing a dramatic increase in trip cost amounts which leads to greater concern over financial losses if an unforeseen event causes a traveler to cancel their trip. At Yonder, we strive to help our customers understand exactly what their policy covers and excludes so they have full peace of mind booking their dream vacation."
COVID-19 remains a covered medical event.
If the insured traveler, a family member, or traveling companion contracts COVID prior to or on the trip, trip cancellation, trip interruption, travel delay (quarantine), medical expense and medical evacuation benefits still apply.
Travel insurance cost is related to the total cost of the trip.
The average cost of a travel insurance policy may be anywhere between 4 to 8 percent of the total trip cost.
Trip cost amounts are up 55% when comparing 2019 and 2022 data.
Today big travel plans carry big price tags. According to Yonder, their average customer trip cost in 2019 was $4,072.17. Now, in 2022, the average trip cost is $9,015.86. This spike in prices means it is more important than ever for travelers to protect what may be their “trip of a lifetime.”
Cancel for Any Reason
An extremely popular benefit called Cancel for Any Reason allows a policyholder to cancel their trip for any reason at all and recoup up to 75 percent of the total trip cost. Cancel for Any Reason is a time-sensitive benefit and has a few important rules to keep in mind.
- It must be purchased within 14-21 days from the initial deposit date
- It must insure 100 percent of nonrefundable trip expenses
- The policy holder must cancel the trip at least 2 days prior to departure
Cancel for Any Reason is not currently available in New York State.
There are many COVID-related reasons a traveler may wish to cancel vacation plans—anxiety over contracting COVID, a sudden outbreak of COVID at their destination (with or without the closing of borders), or last-minute concerns expressed by a doctor or other healthcare provider, to name a few. Unfortunately, many of these reasons may not be covered by an insurance policy. Though policies with other benefits are available, Cancel for Any Reason provides the most comprehensive coverage for travelers seeking to mitigate the widest range of potential financial losses related to their trip.
Questions? Contact your Eastern Insurance advisor
COVID-19 has kept most of the world at home during the last two years and now adventuring individuals and families are eager to hit the road. Obtaining travel insurance—especially for expensive luxury vacations—has always been a good idea, but never more than now, during the age of COVID-19. We’re here to help you understand how to protect yourself from unexpected financial losses while traveling. Please visit https://www.easterninsurance.com/travelinsurance for more information —and Bon Voyage!