Do Travelers Still Need Pandemic Travel Insurance?

Peak COVID-19 is (hopefully) behind us, but new variants keep emerging — and another pandemic could break out anytime, according to Harvard University public health researchers. 

Unfortunately, not all travel insurance will cover your financial losses if “the next COVID” ruins your next vacation. Knowing what to look for in an insurance policy’s fine print will help you pandemic-proof your travels and ensure a stress-free recovery if you get sick.

Why Get Pandemic Travel Insurance?

Getting sick while traveling can be astronomically expensive.

In serious cases, emergency evacuation and hospitalization bills can reach six figures. Even an asymptomatic illness may require quarantine, preventing you from using prepaid travel services and adding unexpected lodging, food, and transportation costs to your budget.

Though many basic travel insurance policies specifically exclude epidemic-related expenses, comprehensive travel insurance that includes trip cancellation and medical coverage can limit your financial liability if you’re struck by an epidemic while traveling.

What Does Pandemic Travel Insurance Cover?

A travel insurance policy with epidemic coverage may provide upfront payments or reimbursements for:

Medical expenses

If you’re infected with an epidemic disease while traveling, emergency medical benefits will cover necessary treatment — like testing, medicine, and hospitalization — up to its maximum coverage limit. Some insurers may pay for significant medical expenses in advance.

Emergency evacuation and repatriation

If local facilities aren’t equipped to treat your illness and your policy has emergency evacuation benefits, your insurer will arrange and pay for your transport to an appropriate facility, accompanied by a medical escort if necessary. 

Your insurance may also cover the expense of returning you to your home country (“repatriation”) when your condition stabilizes. 

Family travel

In the event of extended hospitalization — i.e., at least 24 to 48 hours — your policy might cover the costs of returning your dependents to your country of residence or bringing a friend or family member to stay with you until you recover. 

Unused prepaid expenses

Trip cancellation and interruption benefits may reimburse unused, nonrefundable trip expenses if:

• You or your travel companion come down with a serious illness and must skip or prematurely end your trip. 
• A non-traveling family member tests positive for an epidemic, and their condition is considered life-threatening or requires hospitalization.
• A medical condition disqualifies you from receiving a vaccine required for your travel destination.

Quarantine

If you or your travel companion are specifically and individually ordered to quarantine following epidemic exposure, trip cancellation or interruption benefits can kick in. 

You may be reimbursed for nonrefundable expenses that the quarantine prevented you from using, plus additional accommodation or transportation costs. 

Denied boarding

If you or a travel companion are denied boarding on a common carrier (plane, train, cruise ship, etc.) due to epidemic-like symptoms, your travel delay or interruption coverage could reimburse you for:

• Lodging, food, and transportation expenses incurred during the delay
• New transportation expenses to resume your trip once you’re asymptomatic 
• Unusable prepaid expenses if you can’t continue your trip

Some plans may expand standard coverage limits for epidemic-related losses. For instance, a policy may normally limit trip interruption benefits to five days of expenses, but that five-day cap might be lifted when the trip is interrupted by an epidemic.

What’s Excluded from Pandemic Coverage?

Even the most comprehensive travel insurance policies are unlikely to cover:

Voluntary changes

Insurance benefits may kick in when you or your travel companion are affected by an epidemic. But they generally won’t apply if you cancel your trip as a precautionary measure, even if a travel advisory was issued for your destination.

The exception to this general rule is if you buy a policy with a cancel for any reason (CFAR) benefit, which partially reimburses nonrefundable travel expenses if you cancel your trip for a reason your trip cancellation coverage excludes.

Broad quarantine

A quarantine order may not be covered if it applies to a broad population segment, geographical area, building, or vessel — for example, if the city you’re visiting is put under lockdown.

How To Choose a Pandemic Travel Insurance Policy

Finding an affordable travel insurance quote that covers epidemics takes a little research. Here’s how to collect and compare policies.

1.  Calculate nonrefundable trip expenses

Start by adding up your nonrefundable trip expenses, which are: 

• Trip-related payments made before your departure date that merchants won’t refund
• Fees merchants will charge for payments they will refund 

Examples of nonrefundable trip expenses may include flights, prepaid hotels or homestays, prepaid tours, etc.

Be as accurate as possible when adding these up. If a travel company will refund you for unused reservations, that reduces an insurer’s liability and your policy’s price. 

While reviewing your nonrefundable expenses, note the date of the first trip payment you made. This is the “initial trip deposit date” you’ll submit when requesting policy quotes. 

Some policy benefits, like CFAR coverage, are applicable for a limited period following your initial trip deposit date.

2. Request policies

The easiest way to compare travel insurance policies is by inputting your planned trip details (destination countries, travel dates, and nonrefundable trip expenses) in a travel insurance marketplace like VisitorsCoverage, SquareMouth, or TravelInsurance.com. 

The platforms will then display the policies their partners offer for your planned journey.

It may be tempting to go with the cheapest policy available and call it a day. But a policy with a rock-bottom price might not cover epidemics.

Before buying, search an insurance policy’s certificate PDF to see if it lists epidemics or pandemics under “general exclusions” or as exclusions for specific benefits, like trip cancellation or delay. 

Then, narrow your options down to policies that don’t exclude epidemics or pandemics from coverage.

3. Scrutinize limits

Once you’ve collected a few policies, drill down into their maximum coverage levels for benefits like trip cancellation and interruption, travel delay, emergency medical treatment, and emergency evacuation.

Pay particularly close attention to emergency medical and evacuation coverage limits. Low medical coverage limits make your policy cheaper but can saddle you with ginormous air ambulance and hospital bills in worst-case scenarios.

We generally advise against international travel with less than $50,000 and $250,000 of emergency medical and evacuation coverage, respectively. If you’re offered multiple policies that cover epidemics and are comparably priced, go with whichever has higher coverage limits.

COMPARE: Best Travel Insurance With High Medical Limits

More Tips for Safe Pandemic Travel

Don’t just rely on insurance to protect your health and finances. There are other ways to make sure you’re prepared for anything when traveling.

Check advisories regularly

Before booking travel, review advisories issued by the Centers for Disease Control and Prevention (CDC) and the State Department. 

Periodically revisit them as your travel date approaches. Advisory levels can escalate rapidly, and insurance benefits are usually voided if you ignore government orders and travel to restricted countries.

At least a month before departure, compare the CDC’s recommended vaccines for your destination countries with your immunization records. 

Vaccine shortages for diseases like rabies and yellow fever — which occasionally break out in popular destinations like Thailand and Colombia — means you want proper immunization before you go.

Keep documents handy

Carry digital and printed copies of these documents so you can have smooth communication with officials, insurers, and medical practitioners:

• Immunization records: Border control officers may request these when you enter or arrive from certain countries.
• Policy number and insurer’s emergency helpline number: Some hospitals may require proof of insurance before providing treatment, and certain procedures may need your insurer’s preauthorization.
• Prescription medications, dosages, and allergies: Listing these can prevent adverse medication interactions.

Prep for temporary expenses

If an epidemic messes up your travel plans, you may need to temporarily cover significant expenses — like medical bills, quarantine lodging, or emergency flights. And it can take a few months to be reimbursed after submitting an insurance claim. 

High-limit travel credit cards can help you cover immediate expenses, and an emergency fund can help you pay those charges off while awaiting your claim outcome — without incurring interest.

Save receipts and medical documents

Epidemic-related expenses must be demonstrated to your insurer when you file a reimbursement claim. 

Take clear photos of medical documents you receive during treatment (diagnoses, quarantine instructions, etc.) and any bills you’ll include in your claim.

FAQs About Pandemic Travel Insurance

Does credit card travel insurance cover COVID-19?

Some of the best credit cards for travel insurance cover certain financial losses resulting from COVID-19 or other illnesses. 

For instance, the Chase Sapphire Preferred® Card covers up to $10,000 of trip cancellation and interruption losses per covered traveler and $20,000 per trip.

That coverage applies to qualifying prepaid expenses you miss out on if illness prevents you or a travel companion from taking your planned journey or unexpected expenses from quarantining during your travels.

But few credit cards include emergency medical or evacuation coverage, and those that do have inadequate coverage limits. If you’re traveling overseas, purchase a separate travel medical insurance policy that complements the trip insurance benefits provided by your credit card.

Do I need epidemic coverage for a U.S. trip?

You may not need additional travel medical coverage if your destination has medical providers within your U.S. health insurance plan’s network or if your plan offers affordable pricing for out-of-network providers.

But buying trip insurance with cancellation and interruption benefits can be a smart precaution whether traveling domestically or internationally. Trip insurance can help reimburse your prepaid travel expenses if you get sick before a domestic trip and must stay home. It can also cover the unexpected costs of quarantine during a domestic trip.

Who does a travel insurer consider “family”?

Most insurers include nuclear family, extended family, in-laws, and stepfamily within their definition of “family.” Some may also include live-in caregivers and service animals among the members of your support system that can activate trip cancellation and interruption benefits. 

Some insurers, such as Travel Guard, let you name one traveling companion as a family member, even if they’re not a relative.

TL;DR: Do I Need Pandemic Travel Insurance?

COVID-19 completely changed travel, and even though the worst is (we hope!) behind us, that doesn’t mean you shouldn’t consider the risks of epidemic illnesses. Other illnesses beyond COVID may require quarantine or specialized medical treatment.

A travel insurance policy can protect both your money and your health. Look for policies with high medical limits and trip cancellation coverage so you can travel safely and save money if illness strikes.

. . .

---

Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.