Coronavirus Panic Outlines Limits of Most Travel Insurance
Skift Take
Airline and online travel agencies have been under fire from legislators in recent years for their travel insurance marketing tactics. In these trying times, these companies now more than ever must provide greater transparency into what their policies do — and don't — provide before consumers click the button to purchase.
Get the Latest on Coronavirus and the Travel Industry on Skift's Liveblog
Indeed, travel insurance has its limits. In the case of the coronavirus, insurance carriers aren't providing protection against consumers deciding of their own volition to not travel. The exception is cancel-for-any-reason policies, but these packages come with a premium price tag and refund only a portion of a purchase. If the U.S. government issues a travel advisory, travelers would need to look to their airline carrier to waive change fees. Flyer Beware Travel insurance is often marketed in a misleading way. Travel companies will squeeze a few more dollars out of consumers at the end of their purchase process using hate-selling techniques. Those expecting to get their money back immediately will be disappointed, too, as the claims process for a trip can be byzantine. Some U.S. states have banned more extensive policies, but that said, they are outliers. New York outlawed cancel-for-any-reason policies because the state claims it is illegal