Travel Payments

Insurers Pivot To Road Trip, Overseas Pandemic Travel Coverage

Indiana-based travel insurer Seven Corners is beginning to adapt its offerings to the coronavirus era, with new packages addressing the needs people will have for the time being, CNBC reports.

One package, titled Liaison Travel Plus, deals with virus infections while traveling; the other, called ARMOR, caters to motorists as road trips within the U.S. become the preferred method of vacation travel for now, compared to overseas trips or flights.

Seven Corners president Jeremy Murchland said the new medical plan was aimed at making sure those who came down with the coronavirus were able to get the help they needed. Many people found themselves shut out from payouts on virus claims.

“Some people bought insurance thinking they knew what it was, but then went to file a claim and realized they don’t have coverage,” he said, according to CNBC.

The Liaison Travel Plus package will allow coverage for up to $100,000 if one contracts the coronavirus while traveling overseas, CNBC reported.

With ARMOR, motorists will have access to protection from injuries or accidents for road trips up to 30 days and over 100 miles away from a person’s home within the U.S., Canada or Mexico.

A recent report by PYMNTS has indicated that, for many Americans, going out into the world might not be a very high priority. A quarter of respondents in early May, as states were beginning to discuss reopening, said they weren’t at all interested in going back out in public spaces. And many reported the fear of catching the virus as their top worry, far above any economic concerns.

But as the state lockdowns begin to ease, people are going out more than they have been, and a recent PYMNTS video-conference with Karen Webster on travel and hospitality during the COVID-19 crisis saw industry experts talking about how the landscape will change.

John Galvin, president and CEO of AAA Northeast, said the company’s TripTik travel planning program was seeing an upswing in vacations for short distances, enjoying beaches, lakes or other places where people can feel safe, rather than spending time in large groups and confined areas.

Galvin said the economic issues, with many unemployed and businesses losing money, would likely last longer than the health concerns, and the rebound would likely be slow due to the number of people and businesses hurting financially right now.

But he said the company was still seeing optimism in peoples’ vacation plans — some, he said, were booking trips as far out as September and October of 2021.

“A big part of a vacation is the dream and the anticipation and the enjoyment of looking forward to the trip,” he said. “We’re seeing people book throughout the year, and being excited about their vacation. The real answer to me is, without the knowledge of the medical issue being resolved, it’s hard to say what what next Memorial Day will be. I’m certainly optimistic that the whole world is working on this, and there’s a lot of smart people in the world.”

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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