InsureMyTrip Reports "Voucher Travel Insurance" On The Rise
Last updated on 08/28/2020
WARWICK, R.I., May 29, 2020 -- With a surge of canceled trips due to the COVID-19 pandemic, InsureMyTrip anticipates higher demand for "voucher travel insurance", once travel resumes. This week, the travel insurance comparison site has already reported an uptick in inquiries from voucher recipients seeking comprehensive travel insurance for future trips.
"Right now, travel vouchers are more commonly issued as travel suppliers temporarily relax cancellation policies due to the uncertainty around the COVID-19 pandemic," says Ronni Kenoian, marketing and ecommerce manager for InsureMyTrip.
"While travelers still prefer cash refunds, the good news here is that travelers can opt to insure those vouchers for their next trip — just like they would with a cash form of payment."
How Voucher Travel Insurance Works
Example: A cruise line cancels a sailing during the COVID-19 pandemic. In lieu of a cash refund, the cruise line offered passengers a $5,000 voucher for a future cruise. A couple who accepted the $5,000 voucher then redeems it for a future cruise that costs exactly the same amount. Airline tickets totaling $650 were then purchased with cash.
Q: Can the couple purchase comprehensive travel insurance and insure the redeemed travel voucher used for the new sailing ($5,000) in addition to the out-of-pocket cost of airline tickets ($650)?
A: Yes. The passenger can buy comprehensive travel insurance that honors redeemed vouchers for the entire new trip and insure the total trip cost of $5,650. This amount includes the total amount of the voucher and cost of airline tickets.
While the majority of travel insurance companies do honor redeemed vouchers, there are some considerations:
- Travelers can only insure the amount they had originally paid out of pocket. So, if a cruise line offered a $1,250 voucher for a $1,000 cruise (with a $250 incentive), travelers can only insure $1,000.
- Initial trip payment date (this date is requested during the quote process) may fluctuate based on how travel insurance companies treat redeemed voucher trips. Some companies may consider the original payment date as "initial trip payment" while others may consider the date the new trip is booked and the voucher is redeemed. This date is important because it will affect time-sensitive benefits eligibility.
Travel insurance agents urge travelers to buy from InsureMyTrip, an unbiased and trusted third-party travel insurance comparison site that offers the most options for insuring redeemed vouchers.
To learn more about insuring travel vouchers, contact a licensed travel insurance agent at InsureMyTrip.com.
Note: Travel insurance plans with an optional "cancel for any reason" coverage offer the most protection for travelers who may want coverage for COVID-19 related fears. Traditional trip cancellation coverage does not cover COVID-19 related cancellations.
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