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The Benefits of Travel Insurance

This summer, many people will take traditional vacations for the first time in a couple of years. The COVID-19 pandemic put vacation plans on pause in the summer of 2020. But now that hundreds of millions of people have been vaccinated against COVID-19, the summer of 2021 figures to see a significant uptick in travel.

According to the data identity firm Adara, domestic flight and hotel bookings for travel between July 1 and August 31, 2021, tripled between February 1 and mid-March. July and August mark peak summer vacation season, and the increase in flight and hotel bookings suggests a growing confidence that summer travel will once again be safe in 2021.

With so many people returning to travel this summer, now is a good time for vacationers to consider travel insurance, and why it could be the best accessory travelers can have in the months ahead.

Trip cancellations and interruptions

No one knows what lies ahead in the summer of 2021. Though the Centers for Disease Control and Prevention has indicated travel is safe for people who are fully vaccinated, travel insurance could provide a safety net should travelers need to cancel or interrupt their trips. The financial experts at NerdWallet note that travel insurance policies may reimburse travelers whose flights were canceled or whose trips were interrupted. Consumers should determine just what is covered in regard to interruptions. A Cancel for Any Reason addendum, also known as a CFAR, is one potential option travelers can consider. Such an add-on allows travelers to cancel their trips for any reason and receive a partial refund for what they paid.

Lost or damaged baggage

Airlines will no doubt welcome a busy travel season this summer after a largely lost, financially devastating 2020. United Airlines acknowledged in January 2021 that it lost $1.9 billion in the final three months of 2020. Summer 2021 will hopefully help airlines get back on track, but the challenges of accommodating such a significant uptick in travelers could increase the likelihood that baggage is lost or damaged. Travel insurance policies can provide a safety net against lost, damaged or even delayed baggage.

Medical emergencies

No one wants to imagine having a medical emergency while on vacation. But such incidents happen, and a travel insurance policy can cover travelers for emergency medical expenses, including transport home. That could be an especially important benefit during an era when public health remains somewhat unpredictable.

Travel is making a comeback this summer. Travelers who want a little extra security on vacation this summer can purchase a travel insurance policy to protect themselves against the unknown.

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