The COVID – 19 pandemic has brought about significant changes in the travel landscape. Even as the intensity of the pandemic wanes, having travel insurance that covers COVID – 19 remains a prudent choice for travelers. Such insurance can safeguard against financial losses in case of trip cancellations, interruptions, or unexpected medical expenses due to COVID – 19 during travel. However, determining the cost of travel insurance to cover COVID – 19 is a complex matter, influenced by multiple factors.
Factors Affecting the Cost of COVID – 19 Travel Insurance
Insurance Type and Coverage Inclusions
Trip Cancellation and Interruption Coverage
Many travel insurance policies with COVID – 19 coverage offer trip cancellation benefits. If a traveler has to cancel their trip due to contracting COVID – 19, being exposed to it, or due to government – imposed travel restrictions related to the virus, the insurance may reimburse prepaid, non – refundable trip expenses. For example, Berkshire Hathaway Travel Protection has several plans that allow policyholders to cancel for COVID – 19 sickness as part of trip cancellation and trip interruption insurance benefits. Plans with more comprehensive cancellation coverage, such as those offering “cancel for any reason” (CFAR) options, tend to be more expensive. CFAR upgrades usually reimburse a percentage (e.g., 50% – 75%) of the insured trip cost.
Travel Insured International’s Worldwide Trip Protector plan offers a CFAR reimbursement of 75% of the insured trip cost. The cost of the policy will be higher compared to a basic plan without this feature as it provides greater flexibility to the traveler.
Medical Expense Coverage
The amount of medical expense coverage for COVID – 19 is a crucial factor. Some policies cover only emergency medical treatment, while others include hospitalization, doctor’s visits, and even the cost of medications related to COVID – 19 treatment. Worldtrips’ Atlas Journey Elevate plan provides $250,000 in medical expense benefits, which is relatively high. In contrast, Travel Insured’s Worldwide Trip Protector plan offers $100,000 in medical coverage per person. Generally, the higher the medical expense limit, the more expensive the insurance policy.
Additionally, some insurers may cover medical expenses related to COVID – 19 only if a professional diagnosis is obtained. For instance, Tin Leg’s coverage requires a professional diagnosis, which can impact the cost and claim – filing process.
Medical Evacuation and Repatriation Coverage
Medical evacuation is extremely important, especially if a traveler contracts COVID – 19 in a remote area with limited medical facilities. Seven Corners’ Trip Protection Choice plan includes medical evacuation and repatriation benefits, with a medical evacuation limit of $1 million. The cost of such policies is often higher because the insurer is taking on the significant financial risk of arranging and paying for emergency medical transportation, which can be extremely expensive, especially in international travel scenarios.
Policies that cover the cost of returning the traveler’s mortal remains to their home country in case of death due to COVID – 19 also add to the overall cost of the insurance.
Travel Destination
Risk Level of the Destination
Different countries and regions have varying levels of COVID – 19 risk, which can affect insurance costs. Areas with a high prevalence of the virus, or those with less developed healthcare systems, may result in higher insurance premiums. For example, if traveling to a developing country where access to quality medical care for COVID – 19 treatment is limited, insurers may charge more to cover the potential higher costs of medical evacuation and treatment.
In contrast, traveling to a country with a well – established healthcare system and a relatively low COVID – 19 risk may result in a lower insurance cost. However, even in low – risk destinations, unexpected outbreaks can occur, and insurers still need to account for potential claims.
Entry Requirements and Local Regulations
Some countries have specific entry requirements regarding COVID – 19 insurance. Singapore, for example, requires short – term visitors entering through certain channels to have travel insurance that covers COVID – 19 – related medical and hospitalization costs, with a minimum insurance amount of 30,000 Singapore dollars. Meeting these requirements often means purchasing a policy with specific coverage limits, which can influence the cost.
In the case of Schengen countries, while the focus is more on general travel medical insurance for visa purposes, having COVID – 19 coverage within the policy is advisable. The cost of insurance for Schengen – bound travelers may be affected by the need to meet certain medical expense and evacuation coverage minimums, which are typically around 30,000 euros (or approximately 300,000 RMB) for medical and related services.
Travel Duration
Length of the Trip
The longer the travel duration, the higher the probability of encountering COVID – 19 or other travel – related issues. A traveler going on a two – week trip has a greater chance of being exposed to the virus compared to someone on a weekend getaway. Insurance companies take this into account, and policies for longer trips are generally more expensive. For example, a one – month travel insurance policy will likely cost more than a one – week policy, all other factors being equal.
Some insurers may have tiered pricing based on travel duration. For instance, a policy for a trip lasting 1 – 10 days may be priced differently from one for a 11 – 15 – day trip. An insurance policy from a major provider for a 1 – 10 – day trip might cost $40 – $55, while for a 31 – 60 – day trip, the cost could range from $85 – $300.
Traveler’s Personal Factors
Age and Health Status
Older travelers are generally at a higher risk of developing severe symptoms if they contract COVID – 19. As a result, insurance companies may charge them higher premiums. Additionally, travelers with pre – existing medical conditions, such as diabetes, heart disease, or respiratory problems, may also face higher costs. These conditions can increase the likelihood of more serious illness from COVID – 19, and insurers need to account for the potentially higher medical expenses.
For example, a 65 – year – old traveler may pay significantly more for travel insurance with COVID – 19 coverage compared to a 30 – year – old traveler with the same travel itinerary and coverage requirements. Some insurers may also exclude coverage for pre – existing conditions related to COVID – 19, while others may charge a higher premium to cover them.
Travel Activities and Lifestyle
Travelers engaged in high – risk activities during their trip, such as adventure sports or volunteering in high – contact settings, may be charged more for insurance. If a traveler plans to participate in activities like mountain climbing or working in a crowded refugee camp, the risk of exposure to COVID – 19 (and other risks) is higher. Insurers may consider these activities when determining the cost of the policy.
On the other hand, a traveler who plans a more sedentary, low – contact vacation, such as a solo beach holiday, may be eligible for a lower – cost policy as the perceived risk of COVID – 19 exposure and other travel – related risks is lower.
Insurance Provider and Policy Features
Reputation and Financial Strength of the Insurer
Well – established and financially stable insurance companies may charge higher premiums, but they also offer greater security in terms of claim payouts. Companies with a long – standing reputation for handling claims efficiently and having strong financial reserves are more likely to be trusted by travelers. For example, Berkshire Hathaway Travel Protection is a well – known name in the industry, and its policies may come at a relatively higher cost due to its brand strength and reliability.
In contrast, newer or less – known insurers may offer lower – cost policies to attract customers, but travelers need to carefully assess their ability to pay out claims, especially in the case of large – scale COVID – 19 – related claims.
Additional Benefits and Extras
Some insurance policies come with additional benefits that can increase the cost. These may include coverage for lost luggage, flight delays, rental car damage, or coverage for pets traveling with the owner. AIG’s Travel Guard Deluxe plan, for example, offers optional add – ons such as pet coverage, wedding coverage, and security coverage. Each of these additional features adds to the overall cost of the policy.
Policies that offer 24/7 emergency assistance, multilingual support, or direct payment to medical providers can also be more expensive. For instance, a policy that guarantees direct payment to a hospital for COVID – 19 treatment without the traveler having to pay upfront and then claim reimbursement may cost more.
Average Costs of COVID – 19 Travel Insurance
Basic Coverage Plans
Based on research from multiple sources, the average cost of a basic travel insurance plan with COVID – 19 coverage for a six – night trip in May 2023 to Croatia for a 30 – year – old traveler from Texas, planning to spend $1,500 on the trip, was around $47.22. Among the companies surveyed, Berkshire Hathaway Travel Protection’s most basic COVID – 19 travel insurance coverage option (ExactCare Value policy) cost $50.
IMG’s travel essential plans, which are budget – friendly, cost more than $10 less than average, at $35.92. However, it should be noted that the most basic IMG plan doesn’t include medical benefits for COVID – 19.
Comprehensive Coverage Plans
For more comprehensive coverage, the costs can be significantly higher. Travel Insured International’s Worldwide Trip Protector plan, which offers good evacuation benefits and a CFAR option, may cost a substantial amount. Based on an analysis of top – rated plans, the average cost of a comprehensive policy with high medical expense limits (e.g., $250,000 – $500,000) and significant evacuation coverage (e.g., $500,000 – $1 million) can range from $200 – $500 or more, depending on the factors mentioned above.
Worldtrips’ Atlas Journey Elevate plan, which provides robust coverage across the board, has an average cost that is relatively competitive for the level of coverage it offers. It has excellent travel delay and medical evacuation benefits, and the cost can vary depending on the traveler’s profile and travel details, but it is generally in the mid – range for comprehensive policies.
Cost Variations by Region and Travel Duration
For short – term domestic travel in the United States, a basic COVID – 19 – covered travel insurance policy might cost as little as $20 – $50 for a few – day trip. However, for international travel to more expensive regions like Europe or Asia, the cost can be higher. For example, a one – week trip to Europe with basic COVID – 19 coverage may cost $50 – $100, while a longer, month – long trip could cost $150 – $300 or more.
If traveling to more remote or high – risk regions, such as parts of Africa or South America, the cost of comprehensive COVID – 19 travel insurance could be even higher, potentially in the range of $300 – $800 or more, depending on the level of coverage and the traveler’s individual circumstances.
Tips for Finding Affordable COVID – 19 Travel Insurance
Shop Around and Compare Quotes
It is essential to obtain quotes from multiple insurance providers. Different companies may price their policies differently based on their underwriting criteria and business models. Online comparison platforms can be very useful in this regard. They allow travelers to enter their travel details, such as destination, travel dates, and desired coverage limits, and then receive quotes from various insurers. For example, websites like NerdWallet and Forbes Advisor provide comparisons of different travel insurance plans, including those with COVID – 19 coverage.
By comparing at least three to five different insurers, travelers can get a better sense of the market rates and potentially find a more affordable policy that still meets their needs.
Adjust Coverage Limits Based on Need
Travelers should carefully assess their actual needs when choosing coverage limits. If traveling to a country with a good healthcare system and a relatively low risk of severe COVID – 19 complications, they may be able to get away with a lower medical expense limit. For example, if traveling to a developed country where the government may cover some COVID – 19 treatment costs in case of emergency, a traveler may not need a policy with a $500,000 medical expense limit.
However, it’s important not to skimp too much on coverage. A balance needs to be struck between cost and adequate protection. For instance, if a traveler has a significant amount of prepaid, non – refundable trip expenses, they should ensure that the trip cancellation and interruption coverage is sufficient to cover those costs.
Book Early and Avoid Last – Minute Purchases
Buying travel insurance as early as possible in the trip – planning process is often more cost – effective. Insurance companies typically offer lower rates when policies are purchased well in advance. Last – minute purchases may be subject to higher premiums as the insurer has less time to assess the risk. For example, if a traveler books their insurance a month before their trip, they may get a better rate compared to someone who buys it just a few days before departure.
Additionally, booking early may also ensure that the traveler is covered for any pre – trip cancellations due to COVID – 19, such as if they test positive before the trip or if there are sudden travel restrictions imposed.
Conclusion
The cost of travel insurance to cover COVID – 19 is highly variable, influenced by factors such as the type of coverage, travel destination, travel duration, traveler’s personal characteristics, and the insurance provider. While basic coverage plans can start as low as around $35 – $50 for a short – term trip, more comprehensive policies with higher medical expense and evacuation limits, along with additional benefits like CFAR options, can cost several hundred dollars. By understanding these factors and following the tips for finding affordable insurance, travelers can make informed decisions and select a policy that provides adequate protection against COVID – 19 – related risks during their travels without overpaying. It is crucial for travelers to carefully read the policy terms and conditions to ensure that they are getting the coverage they expect, especially in the context of the still – evolving situation of COVID – 19 around the world.
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