Is insurance non refundable?

[jmcdon7230]

If you cancel your cruise outside of the penalty period and have your deposit refunded, should the insurance be refunded also?

[mbisson]

The one time it happened to me---it wasn't refundable (BTW-I bought it from NCL that time)

[newmexicoNita]

If you cancel your cruise outside of the penalty period and have your deposit refunded, should the insurance be refunded also?

 

I don't think so,but have never been in that situation nor have I had clients be in the same boat.

[DMAB]

If you cancel your cruise outside of the penalty period and have your deposit refunded, should the insurance be refunded also?

 

Highly doubtful but depends, read the insurance contract that you agreed to. That's your agreement with the insurance company and over rides any opinion you will get on Cruise Critic.

 

Insurance contract vary -a lot-, it always pays to read and understand one before you pay for it.

[jerseygirl3]

It depends...did you purchase through the cruiseline or third party?

 

If third party, most will not refund, but they will allow you to transfer it over to a new vacation.

[garycarla]

I would think in most cases that it is not. After all, the policy has been in effect for a period of time already. The potential loss might be low if you are outside the final payment deadline, but it was still in effect.

 

Sort of like buying health or life insurance, and then deciding to cancel a few months later since you figure you are not going to get sick or die anytime soon.

[patseacruiser]

I am licensed to sell travel insurance in my state and all the policies I have sold do not refund insurance. Most will allow you to apply it to another vacation but they don't issue that offer for very long so you have to book another vacation right away. In fact it happened to me and I had a month to book another one or lose the insurance money.

[jmcdon7230]

I would think in most cases that it is not. After all, the policy has been in effect for a period of time already. The potential loss might be low if you are outside the final payment deadline, but it was still in effect.

 

Sort of like buying health or life insurance, and then deciding to cancel a few months later since you figure you are not going to get sick or die anytime soon.

 

I can understand the theory behind health and life insurance, but pertaining to a cruise, what are they insuring outside of the penalty time period? The insurance company has no risk.

[zqvol]

If you cancel your cruise outside of the penalty period and have your deposit refunded, should the insurance be refunded also?

Insuranceis not refundable.

[njhorseman]

I can understand the theory behind health and life insurance, but pertaining to a cruise, what are they insuring outside of the penalty time period? The insurance company has no risk.

 

 

Many of the policies sold require they must be purchased within a few days up to about 2 weeks of placing your deposit in order to secure a waiver of the pre existing condition exclusion. You are paying for that. Also, unless you are purchasing the cruise line's own insurance, the insurance company does not know the cancellation provisions for your particular booking. For example, certain cabin categories such as high end suites can have cancellation penalties from the day you place your deposit. The insurance company would be providing coverage for that. You're not asked about your particular cruise line's cancellation provisions or the category you've booked when you purchase the insurance. It's a product that is designed to serve the broad needs of the marketplace, not one that is individually underwritten and priced for your personal circumstances.

[familyof4cruising]

Good question. I guess I never thought about it because I never buy trip insurance until final payment is made.

 

Besides a pre-existing condition why would you buy it before final payment?

[DMAB]

I can understand the theory behind health and life insurance, but pertaining to a cruise, what are they insuring outside of the penalty time period? The insurance company has no risk.

 

Depends on the policy, if you have full coverage you are protected against bankruptcy of the cruiseline or airline. You can also get a more generous policy for less money if you buy early.

[garycarla]

You are taking out an insurance policy against all kinds of things happening, not just missing the boat. It take effect the day you purchase it, and is therefore in place. You have obligated yourself to an agreement. You can not turn it back in after using it for awhile.

 

Yea, sort of sucks, but that is what it is.

 

Why anyone would buy it directly from the cruiseline is beyond me. There are so many other better options available.

[jmcdon7230]

You are taking out an insurance policy against all kinds of things happening, not just missing the boat. It take effect the day you purchase it, and is therefore in place. You have obligated yourself to an agreement. You can not turn it back in after using it for awhile.

 

Yea, sort of sucks, but that is what it is.

 

Why anyone would buy it directly from the cruiseline is beyond me. There are so many other better options available.

 

I'm starting to understand that one of the best reasons to buy from the cruise line is that most of them will provide a refund of the premium if the cruise is canceled outside of the penalty period......third party insurers apparently won't. And it looks like most, if not all, of the third party insurers aren't up front about that fact.

[Arwenmark]

Cruiseline insurance is refundable up until final payment date. Other company insurance is NOT refundable, it may be transferable.

This changed a few years ago it used to be refundable if you cancelled prior to final payment date, which IS after all the first date that the insurance company comes under any obligation to you.

 

It is a pet peeve of mine since in General Business Law you must have consideration on both sides for a contract to exist and if they company will not allow you to get your money back if you cancel BEFORE the ins. comp. is under any liability to you then they are getting consideration and you are not.

 

None the less no one has challenged this in court as far as I know and that is the way it stands currently, no refunds.

[njhorseman]

Cruiseline insurance is refundable up until final payment date. Other company insurance is NOT refundable, it may be transferable.

This changed a few years ago it used to be refundable if you cancelled prior to final payment date, which IS after all the first date that the insurance company comes under any obligation to you.

 

It is a pet peeve of mine since in General Business Law you must have consideration on both sides for a contract to exist and if they company will not allow you to get your money back if you cancel BEFORE the ins. comp. is under any liability to you then they are getting consideration and you are not.

 

None the less no one has challenged this in court as far as I know and that is the way it stands currently, no refunds.

 

I disagree. There is an exchange of consideration, and the insurance company does have immediate obligations:

 

(1) In some instances (high end suites on NCL for example), cancellation penalties are applicable prior to the final payment due date.

 

(2) If the cruise line or an airline you are booked on goes bankrupt, the insurance covers your loss.

 

(3) You generally get broader coverage for the same premium...the waiver of the pre existing condition exclusion...by purchasing your insurance immediately or shortly after making your deposit. Conversely, if you wish to purchase a policy that waives the pre existing condition exclusion but wait until you have made the final payment you will pay much more for the policy than you do by buying immediately.

[jmcdon7230]

Highly doubtful but depends, read the insurance contract that you agreed to. That's your agreement with the insurance company and over rides any opinion you will get on Cruise Critic.

 

Insurance contract vary -a lot-, it always pays to read and understand one before you pay for it.

 

I have read the fine print on many online policies and I haven't seen a non refundable warning on any of them.

[njhorseman]

I have read the fine print on many online policies and I haven't seen a non refundable warning on any of them.

 

 

You're looking for the wrong thing. You have to look for the specification of the "free look" period. That tells you how long you have to cancel your policy and get a refund. Once you're past that window you can't get a refund.

 

For example, my policy for an upcoming cruise says the following on the confirmation (declarations) page: "XXX YYY will refund your insurance premium if you cancel within 10 days of purchase and have not filed a claim or departed on your trip."

(XXX YYY is the name of the insurance company)

[Arwenmark]

I disagree. There is an exchange of consideration, and the insurance company does have immediate obligations:

 

(1) In some instances (high end suites on NCL for example), cancellation penalties are applicable prior to the final payment due date.

 

(2) If the cruise line or an airline you are booked on goes bankrupt, the insurance covers your loss.

 

(3) You generally get broader coverage for the same premium...the waiver of the pre existing condition exclusion...by purchasing your insurance immediately or shortly after making your deposit. Conversely, if you wish to purchase a policy that waives the pre existing condition exclusion but wait until you have made the final payment you will pay much more for the policy than you do by buying immediately.

 

While I will grant you that with HIGH END suites there would be a penalty before final payment on in other situations there would not, Many policies I see do not cover bankruptcy or at least not with all companies.

 

Yes you get broader coverage with the pre existing waiver IF you buy it right away, but the company is still not under any liability for those things if you cancel before penalties apply.

 

I am sorry but if I book a cruise six months from now and I buy my insurance from a third party the same day even, and then 3 weeks later I figure out for some reason I cannot go and I cancel, The company has not risked anything for me and they are $100 to $400 [the average Of premiums I pay] richer for it.

 

And it did used to be standard that it was refundable up to final payment date.

[slotaddict]

I cancelled a cruise May 2008 for reasons that were not covered... The insurance company graciously took the policy and applied it to my next cruise...

 

That was thetripinsurancestore.com

[njhorseman]

While I will grant you that with HIGH END suites there would be a penalty before final payment on in other situations there would not, Many policies I see do not cover bankruptcy or at least not with all companies.

 

Yes you get broader coverage with the pre existing waiver IF you buy it right away, but the company is still not under any liability for those things if you cancel before penalties apply.

 

I am sorry but if I book a cruise six months from now and I buy my insurance from a third party the same day even, and then 3 weeks later I figure out for some reason I cannot go and I cancel, The company has not risked anything for me and they are $100 to $400 [the average Of premiums I pay] richer for it.

 

And it did used to be standard that it was refundable up to final payment date.

 

 

You shouldn't buy a policy that doesn't cover bankruptcy...almost all do and most of those that don't are the cruise line's own policies. Yes, policies may name companies they do or don't cover for bankruptcy, but you shouldn't buy one that doesn't cover your cruiseline, and if you can't find one that covers your cruiseline that's a good indication you shouldn't be booking a trip on that line. They are too financially unstable for the insurance companies to risk offering the coverage.

[jmcdon7230]

I don't think so,but have never been in that situation nor have I had clients be in the same boat.

 

As a travel agent, do you normally advise your clients at the time of booking that the insurance is non refundable? This would be especially important if the booking is quite a ways out and is for a group, as ours was. As a group we lost over $900 for canceling seven months before the cruise.

[catnanny]

We purchased insurance from the auto club that booked our cruise, as we needed a good insurance that would allow existing medical conditions. Then NCL canceled the November 29 cruise, due to the engine troubles. The insurance company allowed us one year to rebook another cruise and we are all set with our insurance reinstated for the March 7th sailing on the Dawn.

[terrymtex01]

My thoughts on this topic may have no weight because I'm not an insurance expert, but I'm going to post them anyway.. LOL.

 

We never once, when purchasing travel insurance, have been asked what type of stateroom we are in and what the cancellation policy was for that stateroom. For instance on our upcoming cruise we have an AA and as others have said the cancellation penalities are effective immediately upon booking. The insurance company did not ask any questions about our stateroom when we insurance that trip so they had no clue if they were liable or not from day one. So they insure broad risk which to me means they believe from the day the insurance is taken out they are liable for the claim, reguardless of each cruiselines cancelation policy per stateroom, etc.

 

Second, don't we live in a society where you have to know what YOU are buying? Why should they have to tell you that the insurance is not refundable when they give you ten days to look over the policy you purchased? People have an obligation to do research like the OP is doing when they buy anything. Otherwise it is their bad if they get stuck with whatever they have bought. If the insurance company provides you their policies in writing, you can't say that they were the bad guys here. If they try to tell you that it isn't refundable and they can not show you where it says that in the policy you purchased, then yes, that would be fraud, in my book. I'm not saying that what we get in writing is easily understood by most of us who aren't in that profession, but it is the world we live in.

[erdoran]

Mine was bought through RCI cruises and they state it isn't refundable after ten days--even though I subsequently upgraded after 10 days and it cost more--but what I did learn is you can change the AMOUNT of coverage at any time and get a refund of the premium for the excess coverage. I haven't delved into this too deeply but if you are stuck with a policy you can't use, it is worth asking specifically how low you can reduce the coverage and if you can get a refund on the excess premium.