Travel insurance has never been more important heading into another unprecedented yet busy holiday season. Therefore, travelers will want to familiarize themselves with some of the basics of travel insurance as well as the many benefits of purchasing the right policy to protect their trip.
"Travel insurance has become a more buzzed-about term since COVID-19 began. Whenever a large-scale event happens, from a powerful hurricane to a global pandemic, it raises the awareness of the importance of travel insurance," Daniel Durazo, director of marketing and communications at Allianz Partners USA, told TravelPulse. "And whenever large travel volumes are expected-like the upcoming holiday season when travel delays or winter storms can impact travel, there's added stress. Coupled with flu season and a pandemic, it's understandable that many Americans are feeling anxious and are considering travel insurance."
Allianz reports a 15 percent increase in the number of travelers choosing to purchase travel insurance in 2021 while its claims rate has increased by about 75 percent over last year.
Typically, single-trip travel insurance policies can cost between 5 percent and 10 percent of the total non-refundable trip cost but travelers can save even more with an annual plan like AllTrips Premier featuring Allianz's new Epidemic Coverage Endorsement. "If you're planning three or more trips in the next 12-month span, an annual plan can protect all those trips and save you money, because it may be more cost-effective than insuring each trip separately and it offers the added convenience of having to purchase it just once a year," says Durazo.
Policies vary in terms of coverage but there are a few things travelers should look for when purchasing travel insurance, including protection for non-refundable, prepaid expenses in the event that you have to cancel your trip due to illness caused by COVID-19.
"Allianz Travel Insurance has added coverage to many of its products that includes reimbursement for quarantine-related accommodations if an insured customer or traveling companion is individually-ordered to quarantine while on their trip," Durazo added. "This coverage typically covers the cost of additional food, lodging and transportation while quarantined up to the limits of the policy. The trip interruption and travel delay benefits on certain Allianz plans may also provide coverage if a customer or their travel companion is denied boarding by their travel carrier due to suspicion of illness."
In addition to quarantine expenses, a comprehensive policy can cover emergency medical treatment and emergency medical transportation in the unfortunate event that you become seriously ill or injured.
"While losing the cost of a trip due to an unexpected cancellation would be painful, paying for expensive emergency medical treatment or emergency medical transportation can be financially devastating," Durazo says. "It's important to know that many health insurance policies will not pay for overseas medical treatment or transportation."
For additional peace of mind, travelers can purchase cancel anytime policies. For example, Allianz's Cancel Anytime product provides reimbursement of 100 percent of non-refundable trip deposits when a customer has to cancel their trip for a reason covered by their policy and up to 80 percent of their non-refundable costs when they cancel for most other unforeseen reasons.
On top of the new Epidemic Coverage Endorsement, Allianz's offers a wide range of tools and products to enhance the customer experience and provide additional protection like its SmartBenefits automatic payment feature that can quickly pay out $100 per insured person, per day, for a covered travel delay or baggage delay and Rental Car Damage Protector, which includes primary collision and loss coverage for a damaged or stolen rental car starting from just $11 a day.
Ahead of your next trip, Durazo recommends asking your travel advisor what Allianz plans they have available for your trip and calling Allianz if you have questions about your policy. "Allianz Travel Insurance also offers a 15-day free-look window where customers can review their policy and if it doesn't meet their needs, they can select another product or cancel their policy for a full refund of their purchase price."
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