Voucher travel insurance on the rise according to report
Travel insurance comparison site InsureMyTrip is anticipating higher demand for voucher travel insurance once travel resumes
InsureMyTrip reported an uptick in inquiries form voucher recipients seeking comprehensive travel insurance for future trips.
Ronni Kenoian, Marketing and Ecommerce Manager for InsureMyTrip, said: "Right now, travel vouchers are more commonly issued, as travel suppliers temporarily relax cancellation policies due to the uncertainty around the Covid-19 pandemic.
"While travellers still prefer cash refunds, the good news here is that travellers can opt to insure those vouchers for their next trip — just like they would with a cash form of payment."
While the majority of travel insurance companies do honour redeemed vouchers, there are some considerations. Travellers can only insure the amount they had originally paid out of pocket and initial trip payment dates may fluctuate based on how travel insurance companies treat redeemed voucher trips.
Some companies may consider the original payment date as the ‘initial trip payment’ while others may consider the date the new trip is booked, and the voucher is redeemed. This date is important because it will affect time-sensitive benefits eligibility.