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COVID-19 pandemic prompts more Americans to consider travel insurance

The COVID-19 pandemic has had a profound impact on Americans’ travel plans, including how they protect their trips. According to a recent AAA Travel survey, more than half (55%) of American adults are planning a vacation of at least one overnight stay before the end of next year, and almost a third (31%) of U.S. travelers say they are more likely to purchase travel insurance for their trips planned between now and the end of 2022, specifically due to the pandemic.

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“Travel insurance is more valuable than ever during these challenging times and relatively inexpensive for the peace of mind it provides,” said Bevi Powell, senior vice president of AAA East Central. “Americans are seeing how important travel insurance is to protect their investment so they can focus on making lifelong vacation memories.”

The ability to cancel a trip and get a refund is by far the most frequently cited benefit of travel insurance, with 69% of travelers saying this is most important to them when considering travel insurance for an upcoming trip. AAA advises these travelers to look into travel insurance policies that include a “cancel at any time” component, which could offer more flexibility and protection if a traveler needs to cancel their trip.

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While travel insurance policies have historically not covered epidemics or pandemics, in response to shifting consumer expectations, some providers have started to introduce plans that cover some losses due to COVID-19 or other epidemic diseases.

Recent AAA Travel bookings have increased 11% over 2019, and interest in travel insurance has increased in turn. AAA’s travel insurance sales have seen year-on-year double-digit increases, as members return to travel and see its value. Choosing the right policy is important, and travelers increasingly want policies that protect against common reasons for trip cancellations and interruptions, as well as other travel-related incidents including change fees, delays or lost/damaged luggage.

Also, it’s important to note that some international destinations may require visitors to carry travel insurance, to help cover any unexpected medical costs that may be incurred while visiting. A knowledgeable travel advisor can help travelers navigate these and other evolving travel requirements.

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The AAA Travel survey also found that 6 in 10 Americans (60%) see the benefit of working with a travel agent to plan their upcoming trips. Travelers cited the following benefits of working with a travel advisor, reflecting the important role they play in today’s more complex travel environment:

  • Time-savings when researching or planning a vacation (40%).
  • Getting help with complicated new travel restrictions/requirements (34%).
  • Being able to find the best deals (33%).

AAA Travel advisors are available to help members evaluate travel insurance offerings and plan their vacations when they are ready.