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Best Insurance For Travel During the COVID-19 Era: Cancellations, Testing and Quarantine Protections

Travel in the COVID-19 era requires more than a packed suitcase — it requires a policy that protects cancellations, testing mandates and quarantine costs. This guide helps U.S. travelers pick the best travel insurance for trips originating in the United States (examples reference common departure points such as Los Angeles, New York City, Miami and Seattle), compares top providers, explains what COVID-related benefits actually cover, and shows the buying rules that matter most.

Why COVID-era travel insurance is different (and still essential)

  • Trip cancellation/interruption risks are higher: sudden travel restrictions, positive tests or exposure can derail plans.
  • Quarantine and testing add real costs: extended hotel stays, extra airline change fees, or last-minute tests can quickly exceed $500–$1,500.
  • Medical care & medevac remain expensive abroad — and in some U.S. destinations (e.g., remote Alaska or cruise ports) evacuation can cost tens of thousands.

Government guidance and pandemic-related entry rules change quickly. For the latest U.S. guidance see the CDC travel page. (CDC: https://www.cdc.gov/coronavirus/2019-ncov/travelers/index.html)

Key COVID-specific coverages to look for

When comparing plans for travel from the U.S. (Los Angeles, NYC, Miami, Seattle), prioritize these benefits and conditions:

  • Trip Cancellation for COVID-19: Does the plan reimburse if you or a traveling companion tests positive before departure? Some plans only cover a medical diagnosis; others deny coverage for quarantine without a positive test.
  • Trip Interruption for COVID-related events: Covers returning home early if you fall ill or your destination imposes emergency restrictions.
  • Quarantine & additional lodging: Reimbursement for reasonable accommodation, meals and transportation if quarantine is medically required.
  • Testing costs: Coverage for COVID testing required by airline/entry rules or as part of a medical diagnosis varies by insurer.
  • Cancel For Any Reason (CFAR): Optional, higher-cost benefit allowing reimbursement (typically up to 50–75%) for cancellations for non-covered reasons, often requires purchase within 10–21 days of initial trip deposit.
  • Emergency medical & evacuation (MedEvac): Essential if traveling to remote U.S. locations (e.g., Alaska) or internationally.
  • Policy purchase timing & look-back: CFAR and pre-existing condition waivers require purchase within a specified window (commonly 14–21 days) after initial deposit.

For background on pricing norms and what a policy typically costs, see the NerdWallet overview of travel insurance costs (typical premiums are roughly 4–8% of trip cost): https://www.nerdwallet.com/article/travel/travel-insurance-cost

Top providers for COVID-era travel insurance (U.S. market)

Below is a practical comparison for a typical U.S. traveler (example: 40-year-old, $3,000 prepaid trip). Premiums are estimates and change by age, trip cost, destination and selected options; use provider quote tools for exact pricing.

Provider Notable COVID features Estimate premium for $3,000 trip (40-year-old) CFAR available?
Allianz Global Assistance (OneTrip) Covers COVID-19 illness cancellation/interruption if you’re diagnosed; quarantine coverage varies by plan ~$120–$220 (4–7% of trip cost) Yes (on select plans)
AIG Travel Guard Explicit COVID-19 coverage for illness, quarantine and certain trip changes on eligible plans; 24/7 assistance ~$135–$210 (4.5–7%) Yes (on select plans)
Seven Corners / Travel Medical Strong evacuation & emergency medical coverage; some plans include quarantine lodging ~$140–$260 (4.7–8.7%) Yes (depends on plan)

Notes:

How pricing breaks down (what you’ll pay for)

  • Base plan (medical + baggage + trip delay): typically 4–6% of prepaid non-refundable trip cost.
  • Higher benefit or multi-trip plans: 6–9%.
  • CFAR add-on: adds about 25–50% on top of the base premium and usually reimburses 50–75% of trip cost if you cancel for non-covered reasons (purchase and timing restrictions apply).
  • Example: For a $3,000 trip, expect base premiums near $120–$270 depending on benefits and age. Adding CFAR could increase premium to $300–$450.

Buying rules that affect COVID protection

  • Purchase timing: To qualify for CFAR or pre-existing condition waiver you typically must buy within 10–21 days after initial trip deposit.
  • Coverage activation: Some policies require the insured to be medically able to travel at policy purchase time.
  • Proof and documentation: For COVID claims most insurers require a positive test or physician diagnosis for medical-related cancellations. Quarantine-only claims often require official government or medical documentation.

InsureMyTrip and similar aggregators have thorough explainers about CFAR and timing rules. See InsureMyTrip: https://www.insuremytrip.com/learn/cancel-pack/

Best picks by traveler profile (U.S.-based departures)

Practical tips for U.S. travelers (NYC, LA, Miami, Seattle)

  • If your itinerary includes multiple non-refundable elements (cruise deposits, guided tours in Hawaii/Alaska), buy insurance within 14 days of first deposit for eligibility for CFAR and pre-existing condition waivers.
  • Keep digital copies of test results, positive diagnosis, and government quarantine orders. Many COVID claims fail for lack of documentation.
  • For flights that require testing to re-enter the U.S. or board connections, confirm whether your policy pays for required pre-departure tests — many do not unless tests are medically required; check policy wording.
  • If traveling to cruise ports (e.g., Miami or Seattle departures), be sure your plan covers cruise-specific issues — some insurers sell cruise riders or specific cruise coverage.

Quick checklist before buying

  • Does the plan cover cancellation for a positive COVID test before departure?
  • Are quarantine lodging & meals included if you must isolate overseas or in the U.S.?
  • What is the emergency medical and evacuation limit (recommended minimum $100,000 for international; higher for remote U.S. excursions)?
  • Is CFAR available and what are the purchase/timing constraints?
  • Are testing costs covered when required by carriers or governments?

Final decision framework

  1. List what you can’t afford to lose (non-refundable trip cost).
  2. Get quotes from 2–3 providers (Allianz, AIG Travel Guard, Seven Corners).
  3. Compare policy documents for COVID, quarantine and medevac language — the devil is in the definitions.
  4. If peace of mind matters and you booked far in advance, consider CFAR (understand it raises cost substantially).

For a deeper dive into trip cancellation specifics and how to choose the right policy, read Best Insurance For Travel: Trip Cancellation, Interruption and How to Pick the Right Policy.

Sources and further reading:

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