Can I Get a Travel Insurance Refund?
Travel in the Times of Corona
The global coronavirus outbreak has left thousands of people scrambling to cancel or rearrange their travel plans as the UK government adds countries to their quarantine list on the daily. With flights no longer operating at full capacity and the risk of travelling simply being too high, the outflow of visitors from the UK has seen a drastic fall. One thing to always remember that nearly all travel policies will not offer you cover to any country that the Foreign, Commonwealth & Development Office advise against traveling to.
As a result, many travel insurance companies have stepped forward to offer some form of compensation during these trying times. This includes the likes of Churchill, Axa, and Direct Line, all of which have extended pro-rata refunds to those cancelling due to coronavirus measures.
Of course, this step isn’t without some conditions, including:
- Only those who make a claim for a refund will be reimbursed
- Individuals can only avail a refund if they haven’t made a prior claim on their insurance cover
- Refunds also depend on the nature of your policy, that is, whether it is an annual cover or a single-trip package
Here’s what some of the UK’s leading insurers are saying in terms of their refund policies:
| Insurer | Refund for Annual Policy | Refund for Single-Trip Policy |
|---|---|---|
| Admiral | Pro-rata refund for remaining days | Pro-rata refund for remaining days |
| Axa | Pro-rata refund for remaining days on policies bought before 13th March 2020 | 65% refund on policies bought before 13th March 2020 |
| Allianz Assistance | No refund | Complete refund |
| Aviva | No refund | Pro-rata refund for remaining days |
| Churchill | Pro-rata refund for remaining days | No refund |
| Co-op | Pro-rata refund dependent on policy dates and prior claims | A possible partial refund |
| Direct Line | Pro-rata refund for remaining days | No refund |
What’s a Pro-Rata Refund
You’ll notice that many companies are offering a ‘pro-rata’ refund instead of a simple refund. But what exactly is a pro-rata refund?
Well, a pro-rata refund is a partial refund calculated on the basis of how much of the insurance cover has already been used up. For instance, if an individual has an annual insurance cover starting January and they’re cancelling at the start of April, they will get a refund for the remaining nine months.
Alternatives to a Refund
If you’re stuck with one of the insurance companies that are refusing to give a refund on your travel insurance policy, you may feel like you’re losing serious cash. But hold on, some companies such as Churchill and Direct Line, are offering alternatives to a refund.
Both these firms are giving their customers the option to amend their travel dates, for as much as up to 550 days after the policy was first purchased. While this may seem less appealing than a refund, it can actually work out in your favour, especially if you’ve managed to get a date change on your other travel arrangements – including flights and board.
Insurance Refunds in the ‘Old Normal’
While the coronavirus has managed to have an effect on travel insurance policies and packages, what about refunds when situations are normal? Is it still possible to get a refund or a date change?
Well, that depends on your insurance provider, but typically travel insurance refunds are not common. Most companies do offer a ‘free look’ period that lasts for about two weeks during which customers can choose to have their insurance revoked and get a full refund, or even alter the terms of their policy.
As for the long run, cancellation is the only option!
Is a Refund the Best Option?
Asking for a refund on your travel insurance is no small deal, and hastily making this decision isn’t the best thing to do. While getting a refund during these corona times may seem like a win, it is better to look at the bigger picture and see whether a refund is what will treat you best in the long run.
Ask yourself: do you plan to travel anytime in the near future? Are you looking to postpone your trip instead of cancelling it? If you answer yes to any of these questions, then a refund may be a step down the wrong path.
It’s likely that getting travel insurance is going to be more expensive and more complicated in the near future. And if you choose to cancel now, you might end up paying much more in the future, for a cover that may not be as accommodating. So, really think about your travel plans for the next couple of years before you take the leap towards cancellation.
What to do Now that You’ve Decided
So, you’ve gone through the works and reached a decision about your travel insurance policy. Well, if you’ve decided to go for a cancel and refund, then there will likely be a process involved.
It’s best to make this decision early on because the sooner you apply for a refund, the greater your refund amount is likely to be since most companies will operate on a pro-rata basis. So, you should get on the phone as soon as your mind is made up!
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