Covid-19 is not a thing of the past yet. In spite of the increasing number of people traveling abroad every day, the pandemic might still affect the travel plans of some. Getting infected is still a potential scenario you should not ignore.

Beyond affecting your health, an infection could cost you quite a bit of money, by making you:

• Reschedule/postpone your trip
• Stay at your destination for longer (quarantine)
• Pay unforeseen medical expenses

Consequently, getting reliable vacation insurance has never been so important. Especially if you are an American abroad, where your U.S. health insurance may offer limited coverage. For example, Medicare coverage overseas doesn’t include medication or healthcare services, not even in emergencies.

Vacation insurance offers you a financial safety net so you can enjoy your trip, stress-free. In this post, we’ll share some tips for choosing your vacation insurance during Covid. We’ll also answer some frequent questions, such as:

• Does vacation insurance cover Covid-19?
• Do some destinations require it?
• Does it cover quarantine?
• What benefits should you look for in your insurance?

Let’s get started.

Does Vacation Insurance Cover Covid-19?

Yes, travel insurance policies do cover Covid-19, since they treat it like any other health emergency.

To be eligible for travel insurance benefits, you’ll need a doctor’s note stating that:

• You’re sick
• You’re unable to travel

In other words, you’ll need a positive covid test result, confirmed by a doctor.

Travel Requirements and Useful Coverage

A wide variety of travel insurance policies cover medical expenses, but not all of them will pay for non-medical Covid-related issues.

These issues may include sudden changes to your travel plans due to government regulations, such as:

• Closing borders
• Changes to quarantine requirements

Therefore, some insurance plans will only provide coverage in case you get sick. This is why you need to opt for a plan with “Cancel for any reason” (CFAR) coverage. With CFAR coverage, you’ll be able to get some reimbursement regardless of your reason for canceling.

Moreover, the best health travel insurance plans cover about $150,000 per person in medical expenses.

Additionally, many destinations demand medical coverage as an entry requirement. For example, Costa Rica. The required value will differ from one place to another, so check local regulations before getting your insurance.

Does Vacation Insurance Cover Quarantine Costs?

Yes, if your plan covers Covid-19 expenses for contracting the virus, and you know what benefits to look for.
Quarantine costs are covered by the following travel insurance benefits:

• Travel delay coverage
• Trip interruption coverage
• “Cancel for any reason”
• “Interruption for any reason”

Let’s take a close look.

Travel Delay Coverage

If you get a positive Covid-19 test and have to postpone your return date, “travel delay coverage” can cover your accommodation and meals during quarantine. This benefit offers total coverage of about $100-$2,000 per person, with a daily limit of $50-$300. Plus, it can be extended for up to 7 days.

Trip Interruption Coverage

This coverage can come in handy if you get sick or have to go into quarantine during your trip. Commonly, reimbursements range from 100% to 200% of your prepaid and non-refundable travel costs.

“Cancel for any reason” coverage (CFAR)

CFAR coverage can increase your travel insurance cost up to 50%. But it is definitely worth it. With this coverage, you can cancel your trip for any reason (even unrelated to Covid) and get 75% of your non-refundable costs back.

Unlike the other benefits, you don’t have to be Covid-positive to claim CFAR. Thus, it comes in handy if:

• You want to cancel your trip due to a spike in Covid cases at your destination
• Your destination now requires quarantine for inbound travelers and you prefer not to go
• You suspect borders might close during your trip

The list of reasons could be infinite. You can get CFAR coverage only a couple of weeks after your first trip payment.

“Interruption For Any Reason” Coverage

“Interruption For Any Reason” coverage is great if you have to comply with a mandatory quarantine or interrupt your trip, but you don’t have Covid.

This upgrade is offered by only a few travel insurance companies. With it, you can be reimbursed for portions of your trip you were forced to miss. Plus, you can use it to pay for transportation to catch up with your planned itinerary.

Quarantine Reimbursement: How Does it Work?

If you want a reimbursement after you’ve been on quarantine, you’ll need the following documents:

• Positive Covid test results or proof of close contact with an infected person. Either one will need to be signed by a healthcare professional.
• Proof that quarantine was required.
• Medical bills and accommodation receipts.

Key Takeaways

While the global Covid situation has improved, there’s still room for uncertainty. In this context, travel insurance could help you protect your health, finances, and peace of mind.

Whether you plan to travel or are trying to get a refund post-trip, Covid test results are one of many documents you’ll need. Wondering where to get tested? Discover Covid testing locations near you with our global directory.