Summer is underway and consumers are looking to travel aggressively as pandemic restrictions continue to ease. In fact, according to the World Travel & Tourism Council, summer 2022 bookings have already surpassed 2021 levels by more than 80%.
Travel insurance can be an important tool as consumers reunite with their passion for travel, helping protect their vacation from the unknown. But it’s not always necessary. Here are some guidelines to help you determine if you need to purchase coverage:
- Check cancellation penalties and determine what you can stand to lose if you have to cancel suddenly at the last minute. For example, if you’re staying at a hotel for five days but then can’t go at the last minute, you can often cancel without penalty until 5 p.m. the night before your scheduled stay. In that case, you might not need travel protection. However, if you have booked a flight, cruise or tour with cancellation penalties that you suddenly have to miss, travel insurance might be especially valuable to you.
- Consider the time between booking and paying for the trip and actually taking it. For example, if you won’t embark on your cruise of a lifetime until March 2024, a lot could happen before then. In this case, the cost for travel insurance might outweigh the potential penalties for having to cancel down the line.
- Research your destination. Travel insurance might be a COVID-era requirement if you’re traveling abroad. It might also be a smart purchase based on what you plan to do on your trip. For example, if you break a leg while backpacking in Machu Picchu and need a medical evacuation travel protection might be invaluable, as emergency services in remote locations can often exceed $100,000.
The Aon Travel Takeaway? “The need for travel insurance typically increases relative to the complexity of the trip,” says Beth Godlin, president of Aon Affinity Travel Practice. “Consider how far you’re traveling, how long you’re staying, overall costs of the trip, and more to help determine if you might need travel protection for a trip.”