Often there is a different rate depending on what state you live in, what if you are moving before travelling?

[ontheweb]

This came up in a thread over on the Princess board. The person posting was living in Pennsylvania and paying before moving to Florida. The rate for Pennsylvania was lower than the rate for Florida where they would be living when the cruise embarked. They wanted to know if they would be ok with paying the lower Pennsylvania rate.

[iamtrustworthy]

10 hours ago, ontheweb said:

This came up in a thread over on the Princess board. The person posting was living in Pennsylvania and paying before moving to Florida. The rate for Pennsylvania was lower than the rate for Florida where they would be living when the cruise embarked. They wanted to know if they would be ok with paying the lower Pennsylvania rate.

Hi ontheweb,

 

They use where they live when they buy the policy. You may tell them I gave you the information if you want.

 

Steve Dasseos

Edited September 24, 2021 by iamtrustworthy
typo

[ontheweb]

12 hours ago, iamtrustworthy said:

Hi ontheweb,

 

They use where they live when they buy the policy. You may tell them I gave you the information if you want.

 

Steve Dasseos

I was not the one who asked the question. I was one of the posters who did find it an intriguing question, one that should be asked in this group.

[Hlitner]

I also find the issue intriguing and truly had no idea this was happening.  In terms of travel insurance it makes little sense unless the actuaries for an insurance company had actually looked at cost and loss ratios by State (this is doubtful).  

 

So Steve, since you have the true inside track on the industry why does this happen?

 

Hank

[Babr]

41 minutes ago, Hlitner said:

I also find the issue intriguing and truly had no idea this was happening.  In terms of travel insurance it makes little sense unless the actuaries for an insurance company had actually looked at cost and loss ratios by State (this is doubtful).  

 

So Steve, since you have the true inside track on the industry why does this happen?

 

Hank

I’ll wait for Steve’s answer, but I’m wondering why the rates would vary greatly by state. Could it be that Florida requires provisions that would affect cost?  I don’t understand why the same coverage would cost so much more in one state over another unless the OP was not comparing like-for-like policies.

 

The original discussion is on the Princess forum titled Princess Insurance vs. Private Insurance. All of it is not about this question, but it will give you context.

[GeezerCouple]

On 9/24/2021 at 5:30 PM, iamtrustworthy said:

Hi ontheweb,

 

They use where they live when they buy the policy. You may tell them I gave you the information if you want.

 

Steve Dasseos

 

This is pretty interesting.

 

IIRC, there are states - NY? - that don't allow certain types of insurance to be sold.

What if someone purchased a policy like that while living in another state and then moved to (NY?) where it's not allowed?  

Would the coverage still be there?

And if there was any problem, would one file a complaint with the insurance commissioner's office it the prior state, where one no longer lives?

 

GC

[songbird1329]

I’m not an expert in travel insurance, but I do know a bit about general principles of insurance.

 

Every state has its own rules and regulations about what coverages may and may not be sold.   This affects the rate you pay.

 

What else affects the rate?  The risk involved.  Length of cruise, destination, age of the travelers,  etc. are all risk factors.  
 

Once a policy is issued, it remains in effect unless canceled.  I can’t think of any valid reason why the policy would be invalid if the insured moves to another state, even to a state where the insurance company does not do business.  The policy insures your trip, not your home.

[Philob]

On 10/12/2021 at 6:23 PM, songbird1329 said:

I’m not an expert in travel insurance, but I do know a bit about general principles of insurance.

 

Every state has its own rules and regulations about what coverages may and may not be sold.   This affects the rate you pay.

 

What else affects the rate?  The risk involved.  Length of cruise, destination, age of the travelers,  etc. are all risk factors.  
 

Don't forget them taxes. May not be itemized, but they're in there.