Milwaukee, Wis. – Does travel insurance cover canceled trips? According to experts, the short answer is it depends on the policy and the situation.
In the past few years, BBB received thousands of complaints related to travel insurance, many of which occurred because the policy didn’t cover the cancellation caused by the coronavirus and/or travel bans to certain areas. According to the U.S. Travel Insurance Association, these insurance policies do not typically cover the cancellation of a trip out of fear of traveling or concerning travel advisories.
However, travelers who purchased policies that include Cancel For Any Reason (CFAR) coverage may still be able to recoup funds. Pandemics are often routinely listed as exclusions in policies, so read the fine print. In addition, travelers may also contact the airlines and other travel suppliers before filing a claim to see if those companies offer refunds, waivers, or other accommodations.
When thinking about purchasing travel insurance, consider these tips:
- Travel insurance is intended to help with unexpected events, not things like forecasted hurricanes. Once an event is a “known event,” meaning it’s been forecasted or anticipated, it may not be considered a covered reason for cancellation if a traveler books a trip after that date.
- Policies vary. Before purchasing a policy or trying to file a claim, read the specifics on what the policy does and doesn’t cover. Contact the insurance company directly with questions.
- Read the fine print. If CFAR was purchased, confirm the specific policy wording for all details regarding this benefit before filing a claim.
- Be flexible with travel plans. Dates, times, and arrangements can change at any given time. Make plans, but leave room for the unexpected.
For more information
Visit BBB’s travel HQ for more travel tips and resources.
Be aware of travel warnings issued by the U.S. State Department and Canadian Travel Advisories. Visit BBB.org to research companies that offer travel insurance.
Ensure that the agency you choose adheres to BBB’s Standards for Trust.
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For more information or further inquiries, contact the Wisconsin BBB at www.bbb.org/wisconsin, 414-847-6000 or 1-800-273-1002. Consumers also can find more information about how to protect themselves from scams by following the Wisconsin BBB on Facebook, Twitter, Instagram and YouTube.
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