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LMaxwell

Booking Non-Refundable deposit; take insurance immediately?

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If I book a non-refundable deposit now for a cruise next year, should I take cancel for any reason insurance (3rd party, not from Royal) immediately?  I typically always waited until final payment to buy insurance since I always had a refundable deposit.  It would seem following my own logic of taking insurance once I reach the point where some money can not be recovered if the trip is cancelled or changed, i should take insurance when I book.  Wondering if I am missing some other important piece of information?  Your experiences? 

 

Just to clarify; this is not a question of whether one should or should not have insurance.  We always take out trip insurance.  With the deposit on the line though would the CFAR coverage taken now be sufficient? 

Edited by LMaxwell

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Ask yourself is losing the non-refundable deposit will ruin you financially? If yes, insure now. If not, then wait your normal amount.

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1 minute ago, klfrodo said:

Ask yourself is losing the non-refundable deposit will ruin you financially? If yes, insure now. If not, then wait your normal amount.

 

No, of course it won't cause hardship.  But a mid range policy with CFAR for $175-ish to protect $750 now and up to $6000 later seems like a good bet? 

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Let me ask another way.  Does insurance with CFAR, if I take it when I make the non-refund deposit, cover the deposit amount as well? 

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If you purchase insurance with a “cancel for any reason” clause, and/or if you have a pre-existing medical condition, then yes, you need to purchase insurance within a fairly small window after booking your cruise (that window determined by your insurance company). Otherwise you will not be able to make a claim under either one of those reasons. 

 

If you choose to wait to purchase your insurance until closer to departure, even with a non refundable deposit, that’s OK as long as you understand that, if something happens that makes you cancel your cruise before you add insurance, you won’t be covered. 

 

I currently have a cruise booked with a reduced non refundable deposit, but I’m waiting to add insurance until final payment. If I need to cancel until that date, all I’m loosing is the reduced deposit which is a smaller amount than the cost of the insurance. In my case, it makes financial sense.

Edited by Tapi

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How much is CFAR insurance vs the non-refundable deposit?

 

EDIT:  Already answered.

Edited by Another_Critic

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5 minutes ago, LMaxwell said:

But a mid range policy with CFAR for $175-ish to protect $750 now and up to $6000 later seems like a good bet? 

You'd get an FCC for anything above $100pp if you cancel before final payment, so assuming you'd use that FCC, you are only protecting $200/couple.

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5 minutes ago, Biker19 said:

You'd get an FCC for anything above $100pp if you cancel before final payment, so assuming you'd use that FCC, you are only protecting $200/couple.

750 NRD for 3 people.  Some portion of that becomes an FCC if canceled before final?? 

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32 minutes ago, LMaxwell said:

If I book a non-refundable deposit now for a cruise next year, should I take cancel for any reason insurance (3rd party, not from Royal) immediately?  I typically always waited until final payment to buy insurance since I always had a refundable deposit.  It would seem following my own logic of taking insurance once I reach the point where some money can not be recovered if the trip is cancelled or changed, i should take insurance when I book.  Wondering if I am missing some other important piece of information?  Your experiences? 

 

Just to clarify; this is not a question of whether one should or should not have insurance.  We always take out trip insurance.  With the deposit on the line though would the CFAR coverage taken now be sufficient? 

 

Check the policies, there may be a maximum amount of time to add that type of insurance after initial booking.

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2 minutes ago, Biker19 said:

You'd get an FCC for anything above $100pp if you cancel before final payment, so assuming you'd use that FCC, you are only protecting $200/couple.

 

^^ This.  The insurance policy is only going to make you whole.  They consider any kind of credit that the carrier gives you to be part of making you whole and therefore they would only indemnify you for what you absolutely can not get back as either cash or a credit.  

 

You need to need to review the terms of the CFAR coverage.  Some policies require that you purchase it within X amount of days of the initial deposit made for the trip.

 

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13 minutes ago, LMaxwell said:

750 NRD for 3 people.  Some portion of that becomes an FCC if canceled before final?? 

 

The cost of the policy would be more than we'd get back on a claim if we cancelled before final so we roll the dice and wait.

Edited by Big_G

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1 hour ago, LMaxwell said:

750 NRD for 3 people.  Some portion of that becomes an FCC if canceled before final?? 

$450.

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3 hours ago, klfrodo said:

Ask yourself is losing the non-refundable deposit will ruin you financially? If yes, insure now. If not, then wait your normal amount.

If losing your deposit would ruin you financially, you should really be questioning spending money on a cruise on the first place...

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I have some medical problems and I book my insurance within 14 days of paying my deposit.  I certainly can afford to lose the deposit, but I want the pre-existing coverage.

 

I usually book a year or so out, so it's worth it to me to pay early and not worry about things later.  I know there are some who won't agree, but it makes me comfortable doing what I do.

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There are secondary medical policies that cover preexisting conditions if purchased within 24 hours of final payment.   That's what I use.  I don't cover my $200.  The rest I'd get back in FCC. I buy insurance at final payment.  Otherwise I'd have a lot of insurance sitting out there for a cruise I might not get vacation from work for.  My vacation is always secure by final payment..

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I would buy the insurance now. Sometimes you cannot get "for any  reason" or covering pre-existing conditions if you not  buy the insurance within a short time from initial pmt.

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On 10/10/2019 at 4:32 PM, katiel53 said:

I have some medical problems and I book my insurance within 14 days of paying my deposit.  I certainly can afford to lose the deposit, but I want the pre-existing coverage.

 

I usually book a year or so out, so it's worth it to me to pay early and not worry about things later.  I know there are some who won't agree, but it makes me comfortable doing what I do.

 

We both now have pre-existing conditions and we do with same with Insurance.

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On 10/10/2019 at 3:41 PM, LMaxwell said:

 

No, of course it won't cause hardship.  But a mid range policy with CFAR for $175-ish to protect $750 now and up to $6000 later seems like a good bet? 

It really depends.  If you want CFAR coverage, you need to purchase within a very short time of your deposit if using third party insurance.  Otherwise all you risk losing is the $100 per person change fee.  I never buy insurance until final payment.  By the way, RCCL insurance has a CFAR clause.  If that's your biggest concern, use their policy.  Then you don't need to put the money out until final payment.  

However if your goal is to possibly cancel and NOT take another RCCL cruise, then by all means get it now so you can recover your entire deposit (based on the numbers above).  Or if you are concerned a pre-existing condition might pop up (or you have one), then get it now.  

Really up to you.  I'm willing to risk the $100 to keep my premium if I decide to cancel before Final Payment.  I'll always cruise again, and I feel that $100 per person is pretty cheap risk.  But personal preference for sure. 

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On 10/10/2019 at 7:32 PM, katiel53 said:

I have some medical problems and I book my insurance within 14 days of paying my deposit.  I certainly can afford to lose the deposit, but I want the pre-existing coverage.

With a pre-existing condition, it’s the absolute wise thing to do. I would do the same. 

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According to my insurance agent, I only need to  pay for the part of my trip payment that is non refundable at time of booking.  For example, if I put down a $500 deposit on a $3,000 cruise, I only need to insure that $500 within 14 days of booking the cruise.  (I'm using 14 days, but check the time frame that your insurance requires in order to obtain the CFAR and pre-existing condition waiver.)  Later, when the rest of my cruise fare becomes non-refundable -- usually at time of full payment --  I have another 14 days to call up my agent and pay for the additional insurance to cover the rest of the cost of the cruise.  In my example that would be $2,500.  

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