The desire to travel is strong. While lockdowns, travel restrictions and ongoing COVID-19 outbreaks have seriously hampered our wanderlust in 2020, vaccinations give us some optimism for travel in 2021.
But the travel situation is constantly changing. As the travel industry adjusts on the fly, travelers also need to be able to adapt. Travel insurance is one of the best ways you can maintain that flexibility.
Here are travel insurance trends to keep an eye on in 2021.
Trip Cancellation Insurance Is a Must-Buy
“Trip cancellation has always been the primary driver of travel insurance purchases,” says Megan Moncrief, a spokesperson for Squaremouth, a travel insurance comparison website. “We’ve seen this number range from 80% to 90% of our sales, but never this high.”
Trip cancellation insurance reimburses the prepaid and non-refundable costs for your trip if you’re unable to travel due to an unforeseen circumstance. “Unforeseen circumstances” typically include serious injuries, natural disasters, death of you or a traveling companion, severe weather that makes a travel service unable to operate.
Generally, travel insurance companies consider pandemics a foreseeable event. But many travel insurance companies sell policies with COVID-related coverage, which makes trip cancellation a must buy. Ninety-five percent of travel insurance policies for trips in 2021 include trip cancellation coverage, according to Squaremouth.