What you need to know
Now more than ever, the importance of having a “Plan B” in place is evident. (Particularly when it comes to planning future travel). For this reason, we encourage all our guests to purchase a supplemental trip insurance policy to provide piece-of-mind, maximum flexibility and protection against the unexpected.
However, in the COVID-era, travelers need to be aware that most standard policies come with major exclusions. When you read the fine print, things like trip changes or cancellations due to “fear of travel” are not covered. A large majority of policies will also not cover cancellations or delays due to government restrictions or entry closures (a biggie if you’re inclined to go on a trip, but can’t get there due to a last-minute border closure).
The only way to fully safeguard your travel plans is to purchase a “Cancel for Any Reason” (CFAR) comprehensive policy. As the name implies, it allows you to cancel your departure without having to worry about exclusions or justify your reasoning. However, here are a few important caveats you need to be aware of with CFAR coverage:
- IT’S MORE EXPENSIVE — The added flexibility and inclusions come at a premium. Typically CFAR policies cost 40-50% more than standard policies. To give you an example: Standard trip insurance for cancellation/interruption/emergency medical coverage on a $6000 European trip may cost $300. Adding CFAR could bump it up to $550.
- YOU WON’T RECEIVE ALL YOUR MONEY BACK— Specifics vary by policy and state of residence. Typically, most will reimburse you up to 75% of your prepaid trip costs. Some have a maximum amount they will insure per person.
- YOU HAVE TO PURCHASE IT UP FRONT – Most plans require you to purchase CFAR policies within 14-21 days of your initial trip deposit. It’s very important to confirm this with your provider, so you aren’t denied coverage down the road.
- YOU CAN’T CANCEL LAST-MINUTE EITHER – In order to be reimbursed, most plans require a trip cancellation of at least 48 hours prior to departure. (If you can’t get a COVID test result back in time, you may be out of luck).
- IS CANCEL FOR ANY REASON COVERAGE RIGHT FOR ME? Travel always carries risks and unknowns. In today’s environment, if you’re planning a future trip (especially involving international travel) and don’t want to risk losing 100% of your trip payment CFAR coverage can offer extra piece-of-mind and flexibility and be worth the extra premium. If you are not concerned about canceling due to fear of travel or are staying domestic where the risk of border closures or travel restrictions is low, you may be fine to stick with a standard policy. We invite you to reach out to your travel insurance provider directly to discuss all options and decide which is right for you.
WHERE CAN I PURCHASE CANCEL FOR ANY REASON COVERAGE? – Many insurance providers have currently suspended their CFAR coverage offerings due to COVID and related increases in claims filed. MOJO enjoys a preferred partnership with Redpoint Travel Insurance — a premium, comprehensive insurance provider who does currently offer CFAR coverage (among other comprehensive policy offerings). We invite you to visit their website at https://redpointtravelinsurance.com/partner/mojo-adventures to obtain detailed policy information and a sample quote.