Three Reasons You Shouldn't Always Accept Vouchers for Canceled Trips, says Squaremouth
In response to the COVID-19 pandemic, airlines, cruise lines, and tour operators are issuing countless vouchers for canceled trips. Before accepting a voucher, travel insurance comparison site, Squaremouth, shares three reasons travelers shouldn't accept a voucher for canceled trips.
Voucher Value May Not Be Insurable
Some travel insurance providers categorize vouchers as non-reimbursable expenses, the same as reward points or frequent flyer miles. In this case, travelers should not pay to insure the value of their voucher as they may not be reimbursed if they have to cancel their trip.
If Travel Supplier Collapses, Refunds for Vouchers are Unlikely
With major travel providers like Norwegian Cruise Line and Virgin Atlantic warning of possible bankruptcy, travelers may turn to travel insurance to protect their voucher value. However, if a travel supplier ultimately declares bankruptcy before a trip is booked and insured, travelers with outstanding vouchers may have little or no recourse.
Time Sensitive Benefits May Not Apply
For travelers buying insurance now for a previously planned trip, certain time-sensitive benefits, such as pre-existing condition coverage and Cancel for Any Reason, are only available for a limited time period after a trip is initially booked. If any portion of the new trip was rescheduled and not canceled outright, the original trip booking date will still apply and travelers may not be eligible for time-sensitive benefits.
TRAVEL INSURANCE INFORMATION FOR COVID-19
The Traveler's Guide to Travel Insurance for COVID-19 was created to inform travelers about their insurance options during the coronavirus pandemic.
The Coronavirus Pandemic Current Event Center includes answers to frequently asked questions and providers' position statements. These resources are updated daily as the situation evolves.
SQUAREMOUTH compares travel insurance policies from every major travel insurance provider in the United States. Using Squaremouth's comparison engine and third-party customer reviews, travelers can research and compare travel insurance policies side-by-side. More information can be found at www.squaremouth.com.
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