Copenhagen Shootings and Travel Insurance: Squaremouth says Coverage for Fear is Costly
ST. PETERSBURG, Fla., Feb. 16, 2015 /PRNewswire/ -- A month following the terrorist attacks in Paris, a shooter in Copenhagen has killed two, injured five and stunned a nation. Although the suspected gunman has been killed, weary travelers may still fear visiting this or other popular European destinations. Squaremouth, America's fastest growing travel insurance comparison site, explains why coverage for fear can be costly.
Fear Is Not Typically Covered
Standard Trip Cancellation policies cover travelers who cancel for reasons out of their control, like an unexpected illness or death in the family. While terrorism is also commonly covered, cancelling out of fear is not.
In order for a traveler to be covered to cancel for reasons related to Copenhagen, their policy must include terrorism coverage, and the attack in Copenhagen must meet their policy's definition of terrorism.
"Although the event that sparks fear may be out of the traveler's control, it must also fall under one of their policy's covered reasons," explains Squaremouth co-founder and CEO, Chris Harvey. "If it doesn't, the traveler can still cancel their trip, but it is unlikely that they will be reimbursed by their travel insurance provider."
Costly Coverage for Fear
There is one saving grace for travelers who want the ability to cancel out of fear, but with this additional coverage comes a higher price tag.
Cancel for Any Reason is an optional upgrade that increases the cost of a travel insurance policy by about 40%. Travelers who pay for this additional benefit can cancel for any reason, including fear, and be reimbursed up to 75% of their trip cost, as long as they cancel at least two days before their scheduled departure.
Why the high price tag?
"By giving travelers the option to cancel for any reason at all, the travel insurance provider is taking on much more risk," explains Harvey.
In order to be eligible for Cancel for Any Reason, the policy must be purchased within 30 days from the first trip payment and 100% of the trip cost must be insured. Of the 129 products currently live on squaremouth.com, 20 include the Cancel for Any Reason upgrade.
"We typically don't recommend paying more for Cancel for Any Reason unless a traveler's specific concerns aren't covered," adds Harvey. "However, for those specifically concerned about the unpredictability of international travel, paying more for this type of coverage may be worth the price."
ABOUT SQUAREMOUTH:
Squaremouth is an online company that compares travel insurance products from virtually every major travel insurance provider in the United States. Using Squaremouth's comparison engine and third party customer reviews, travelers can research and compare insurance products side-by-side. More information can be found at www.squaremouth.com.
AVAILABLE TOPIC EXPERT:
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SOURCE Squaremouth
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