In response to the COVID-19 pandemic, airlines, cruise lines, and tour operators are issuing countless vouchers for cancelled trips. Before accepting a voucher, here are three reasons travellers shouldn’t accept a voucher for cancelled trips.
1. Voucher value may not be insurable
Some travel insurance providers categorise vouchers as non-reimbursable expenses, the same as reward points or frequent flyer miles. In this case, travellers should not pay to insure the value of their voucher as they may not be reimbursed if they have to cancel their trip.
2. If travel supplier collapses, refunds for vouchers are unlikely
With major travel providers like Norwegian Cruise Line and Virgin Atlantic warning of possible bankruptcy, travellers 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, travellers with outstanding vouchers may have little or no recourse.
3. Time-sensitive benefits may not apply
For travellers 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 cancelled outright, the original trip booking date will still apply and travellers may not be eligible for time-sensitive benefits.
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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, travellers can research and compare travel insurance policies side-by-side.