Do I Need Coronavirus Travel Insurance?

The spread of the corona virus (COVID-19) in recent weeks has wreaked havoc on international travel, tourism, and even our day to day lives as we are forced to self-isolate. Additionally, almost all countries in the world have put up travel restrictions, against all but essential travel. You can see a detailed map of world-wide travel restrictions here.

But if you are planning to travel during this time, you must be wondering how to keep yourself safe during your travels and whether you need coronavirus travel insurance.

Coronavirus Travel Insurance:

Under normal circumstances, getting travel insurance for an international trip is recommended – if not required. However, there is no specific “coronavirus” travel insurance. As a matter of fact, as COVID-19 is spreading worldwide more rapidly than ever, some major travel insurance companies have stopped selling new insurance plans altogether.  Others have made changes to their existing policies so they do not have to cover trip cancellation or disruption.

So, while you can still buy travel insurance, how much coverage you will be getting depends on the specific policy. It is up to you to very carefully read the policy and what you are purchasing, so you are not met with surprise charges down the line.

Changes to Travel Insurance Plans Due to Coronavirus

Some travel insurance companies have made the following changes to their policies:

•           They no longer offer cancellation cover

•           They no longer offer trip disruption coverage

•           They no longer offer coverage for any coronavirus-related claims

Keep in mind that these changes come into force for new policies. If you had an existing policy before the coronavirus outbreak or before your government put up travel restrictions and advised against non-essential travel, your travel insurance will still cover you.

On March 11, the World Health Organization has declared the coronavirus a pandemic, which means it is a worldwide threat. In an effort to stop the further spread of the disease, governments all around the world have put up travel restrictions. This, in turn, has increased the probability that your trip will be cancelled, which is the reason behind the policy changes.

You Are Scared of Travelling Due to Coronavirus: Do You Have Coverage?

Fear of the coronavirus is not included as a valid cancellation reason in any standard travel insurance policy, even if you have a trip-cancellation package. But if your government issued a warning against travelling after you bought the policy, then you may have some coverage. Still, the only time when you are most likely to have coverage for trip cancellation is if you purchase a “Cancel for Any Reason” add on to your existing plan.

However, even this comes with its own rules, such as:

•           You have to purchase the plan within 20 days from when you make your initial payment or deposit for your trip.

•           You have to purchase insurance for the entire cost of any nonrefundable prepaid trip arrangements that can be cancelled or restricted.

•           You cancel the trip no less than 48 hours before you are scheduled to depart.

See the best Cancel for Any Reason plans.

Will Travel Insurance Cover for Coronavirus Medical Treatment?

This ultimately depends on your health insurance plan, and there is no simple Yes/No answer. From what can be seen so far, there are companies that will cover medical expenses for coronavirus if you fulfil the following requirements:

•           You arrived in the foreign country before there was a coronavirus outbreak.

•           You arrived in the foreign country before the competent authorities in your home country (such as the CDC) issued travel restrictions.

•           Your plan includes coverage for an epidemic or pandemic. Most travel insurance plans don’t have this specific type of coverage, however.

Should You Cancel Your Flight Because of the Coronavirus?

As the situation stands, you will likely not have any other choice other than to cancel your flight. Because of the large-scale travel restrictions that are currently in place, more and more airlines are cancelling international flights, often leaving passengers stranded abroad.

But, whether you should cancel your flight depends on:

1.         Is there a travel restriction for the place you intend to visit? If the place you want to visit is considered high-risk, your government will most likely already have restricted travel.

2.         Is the trip essential? An emergency or for medical purposes? If it is not, even if you are travelling to a low-risk place, you are advised to reconsider your trip. The WHO is advising people to practice social distancing and remain home as much as possible in order to curb the spread of the pandemic.

3.         Are you travelling from a high-risk place? If you are, you will likely be denied entry into whatever country you are travelling to.