Travel Insurance With COVID Coverage: What You Need To Know in 2025

Happy travelers with luggage at airport, representing safe travel with insurance

Travel has bounced back in a big way since the height of the pandemic, but COVID-19 is still a reality—and it’s still disrupting trips around the world. Whether you’re planning a weekend getaway or a months-long adventure, understanding how travel insurance covers COVID-19 is more important than ever. In this guide, we’ll break down everything you need to know about travel insurance policies with COVID coverage, so you can explore with peace of mind.

Why COVID Coverage Matters in Travel Insurance

The pandemic taught us that travel plans can change overnight. Borders close, flights get canceled, and sometimes, you or a loved one might test positive right before departure. Without the right insurance, these surprises can lead to lost money, stress, and even health risks abroad.

Most standard travel insurance plans now treat COVID-19 like any other illness, but not all policies are created equal. Some offer robust protection, while others have significant exclusions. That’s why it’s crucial to read the fine print and choose a plan that matches your needs.

What Does COVID Travel Insurance Cover?

Here’s a snapshot of the key benefits you’ll find in many COVID-aware travel insurance policies:

Trip Cancellation: If you or a travel companion test positive for COVID before your trip and a doctor deems you unfit to travel, you can often get reimbursed for non-refundable expenses like flights, hotels, and tours.
Emergency Medical Expenses: If you catch COVID while traveling, your policy should cover hospital stays, doctor visits, and medications, just as it would for any other illness.
Trip Interruption: If you’re already on your trip and have to cut it short due to a COVID diagnosis, many policies will reimburse unused portions of your trip and even cover extra expenses to get home.
Travel Delay: Stuck in quarantine abroad? Travel delay coverage can help with additional accommodation and meal costs.
Medical Evacuation: In severe cases, if you need to be evacuated to a better medical facility or repatriated home, this should be included.
Cancel For Any Reason (CFAR): For maximum flexibility, CFAR coverage lets you cancel your trip for almost any reason—including general concerns about COVID—and get a partial refund. This usually costs more and must be purchased soon after booking.

Family reviewing travel insurance documents together at home

What’s Not Covered?

While coverage has improved, there are still common exclusions:

Fear of Travel: Worried about COVID but not sick? Standard cancellation coverage won’t reimburse you for canceling out of general concern—only if you or a family member actually test positive.
Government Travel Bans: If your destination suddenly closes its borders or imposes quarantine rules, most basic policies won’t cover cancellation costs. CFAR is the exception here.
Pre-Existing Conditions: Some policies exclude coverage if you have a pre-existing condition that increases your COVID risk. Always check the policy wording.
Vaccination Status: Most policies don’t require you to be vaccinated against COVID, but a few may limit coverage for unvaccinated travelers. Always confirm this detail before buying.

How to Choose the Best COVID Travel Insurance

With so many options, how do you pick the right plan? Here’s a step-by-step approach:

1. Assess Your Risk and Trip Details

Consider your destination’s COVID situation, your health, and how much you’ve invested in your trip. The more you stand to lose, the more comprehensive your coverage should be.

2. Compare Policy Features

Use a comparison site to see side-by-side what each policy offers for COVID-related cancellations, medical expenses, delays, and evacuations. Pay special attention to coverage limits and exclusions.

3. Look for “Cancel For Any Reason” (CFAR)

If you want the ultimate flexibility, CFAR is worth the extra cost (typically 30–50% more). Just remember: you usually have to buy it within a couple of weeks of your first trip payment.

4. Check the Fine Print on Medical Coverage

Make sure the policy covers COVID-19 medical treatment abroad, including hospitalization and evacuation. Some plans have different limits for vaccinated vs. unvaccinated travelers.

5. Understand the Claims Process

Know what documentation you’ll need (like a positive test from a licensed provider) and how to file a claim. Keep all receipts and medical records.

6. Consider Annual Policies for Frequent Travelers

If you travel often, an annual multi-trip policy with COVID coverage could save you time and money.

Real-Life Scenarios: How COVID Coverage Works

Let’s look at a few examples of how COVID travel insurance can (and can’t) help:

Scenario 1: You test positive for COVID three days before your international flight. A doctor says you can’t travel. Your trip cancellation coverage reimburses your non-refundable expenses.
Scenario 2: Mid-trip, you develop COVID symptoms, test positive, and are ordered to quarantine. Your policy covers your extended hotel stay, meals, and any change fees to reschedule your flight home.
Scenario 3: You’re worried about a new COVID wave and want to cancel, but you’re not sick. A standard policy won’t cover this, but a CFAR add-on would give you a partial refund.
Scenario 4: A sudden government ban prevents you from entering your destination. Basic policies typically exclude this, but CFAR would apply.

Top Providers Offering COVID Coverage

While coverage details vary, several insurers are known for strong COVID protection:

Provider	COVID Medical Coverage	Trip Cancellation	CFAR Option	Notes
IMG	Yes	Yes	Yes	Treats COVID like any illness
Seven Corners	Yes	Yes	Yes	Covers evacuation, quarantine costs
Manulife	Yes	Yes (interruption)	No	Higher limits for vaccinated travelers
Allianz	Yes (with endorsement)	Yes	Yes	Check for epidemic coverage add-ons
Tugo	Yes	Limited	No	Focus on medical, less on cancellation

Always get a quote directly from the provider and read the full policy wording before purchasing.

How Much Does COVID Travel Insurance Cost?

Expect to pay between 4% and 10% of your total trip cost for a solid policy with COVID coverage. CFAR add-ons are more expensive but offer greater peace of mind. Prices vary based on your age, destination, trip length, and coverage limits.

Tips for Traveling Safely with COVID Coverage

Buy Early: Purchase insurance as soon as you book your trip to maximize coverage options, especially for CFAR.
Keep Records: Save all receipts, booking confirmations, and medical documents in case you need to file a claim.
Stay Informed: Check your destination’s entry requirements and COVID policies regularly, as they can change quickly.
Know Your Policy: Understand what’s covered, what’s excluded, and how to contact your insurer in an emergency.
Consider Health First: Even with insurance, prioritize your health. Follow local guidelines, consider travel delay coverage, and have a backup plan.

The Bottom Line

Travel insurance with COVID coverage isn’t just a nice-to-have—it’s an essential part of trip planning in 2025. With the right policy, you can protect your investment, your health, and your peace of mind, no matter what surprises come your way. Take the time to compare plans, understand the details, and travel confidently, knowing you’re covered.

Safe travels—and here’s to many more adventures, with fewer worries!