Staying Stateside for Your Next Trip? Here’s What You Need to Know About Travel Insurance

Mar 22, 2021 | Aon

More and more Americans are eagerly getting ready to travel again. Early data suggests many will be opting for getaways within U.S. borders, with a heightened emphasis on safety and security influencing their travel decisions.

Beth Godlin, president of the Aon Affinity Travel Practice, says at moments like these the industry tends to see an increased demand in consumers purchasing travel insurance for domestic vacations. “Typically, consumers purchase travel insurance for a longer haul, higher price point trip booked months in advance, but when we experience a significant event – like a global pandemic – people feel the risks more acutely, even when they are staying closer to home. That drives demand for travel insurance and the added level of security it can offer.”

So how does travel insurance work for domestic trips?

At its core, travel insurance is designed to protect your financial investment, health and belongings from the risks associated with travel. Policies can vary widely – from basic plans covering specific risks to benefit-rich plans tailored for the specific trip. That variety means there’s an option that meets just about everyone’s unique travel needs, whether you’re taking a riverboat cruise on the Columbia or staying at an exclusive coastal resort.

Some of the most popular benefits for domestic travel include:

Trip Delay. Designed to help offset additional costs due to a delay – including meals, lodging or transportation, trip delay benefits can help you “catch up” to your travel plans. It may also include reimbursement for the portion of the trip you missed while catching up with your travel arrangements. Trip delay terms can require a minimum length of the delay before coverage can kick in (typically 4-12 hours) and may also specify that coverage applies to delays caused by specific named perils.
Trip Interruption. These benefits provide reimbursement of non-refundable expenses if you’re forced to cancel a trip for an unforeseen reason such as an illness, death, jury duty, traffic accident, appearance in court, or a home that’s rendered uninhabitable. Examples of scenarios that may not fall under trip interruption coverage include: not having fun and going home, ending the trip early after a fight with a traveling companion, returning late from an excursion and missing the sail time, and deciding not to catch up with that trip after experiencing a flight delay.
Trip Cancellation or Cancel For Any Reason (CFAR). While typical trip cancellation benefits are lower in cost, they only provide reimbursement for certain specified reasons. The only travel protection benefit that allows you to cancel for any reason at all, CFAR benefits provide the ultimate flexibility. While not offered on all travel protection plans, some include CFAR benefits with the plan, or as an upgrade. Either way, it’s important to note what percentage of the trip might be either refunded in cash or returned in a credit, as those terms can vary dramatically.

Before purchasing any travel insurance plan, however, it’s important to ask plenty of questions of any travel insurance provider and read the policy thoroughly to ensure the investment matches both trip and the traveler. Another pro tip? “Purchase your travel insurance at the same time you book your travel,” Godlin says. “This ensures your coverage is locked in, and that you don’t run the risk of going without coverage altogether because you were planning on ‘doing it later’.”

So what’s the Aon Travel Takeaway for travelers planning a domestic getaway this year? Godlin says that travel insurance can provide that extra peace of mind you need to get back out on the road and enjoy new destinations as well as old favorites again. Doing a little bit of homework before you book will help you find a policy that complements your unique travel needs.

All descriptions, summaries or highlights of coverage are for general informational purposes only and do not amend, alter or modify the actual terms or conditions of any insurance policy. Coverage is governed only by the terms and conditions of the relevant policy.

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