Insurance / Trip protection, How much is enough?

[ldparker]

Do you insure your entire vacation expense or just the portions that are non-refundable?

 

I have an upcoming cruise with air through the cruise line. After final payment, that portion of my vacation could be considered non-refundable if I have to cancel. I have also planned a post-cruise stay on my own. That portion of the vacation is refundable if I have to cancel for some reason. I'm not sure if I should insure the entire vacation or just the cruise and air fare portion.

 

Example - I had a rather unpleasent experience a few years ago dealing with an insurance carrier after I had to cancel a trip because of illness. I had insured that trip for a total of $6,000. The cancellation penaltyf rom the cruise line was only 3,000. The insurance company said that the total penalty was only half of my insured value and therefore they were only obligated to pay me half the penalty. I only got $1,500 when I thought I was covered completely. That is somek ind of "Insurance Company Logic"

 

Any experiences?

 

Thanks, David

[everydaycruiser]

If you are going to do that, read the policy or ask. Some insurance companies require you to to purchase insurance for the entire value of the trip for them to pay 100% of the claim. If you fail to purchase insurance for the entire value they then prorate any claims.

 

P.S. In some states the same is true for homeowner's insurance.

[CaribbeanBound]

You also make sure you cover things such as emergency medical evacuation. Here are 16 VERY important things to consider when buying cruise insurance...

*****

[cruiseco]

You con only insure those trip arrangements that are:

 

1) pre-paid

2) non-refundable

 

Basically you would want to insure the amount you would be forfeiting to penalties should you have to cancel at the very last minute.

 

In many cases you can choose to insure an amount less that that total. And sometimes it makes sense to do so. Most premiums are figured on the trip cost broken down into $500 increments. For example, if the trip cost is $501 to $1000 the premium may be $50, if the trip cost is $1001 to $1500 the premium may be $75.

 

But what if your trip cost is $1005? You would be paying an additional premium of $25 to insure that last $5 which is not a good use of your money. You'd be way beter off in most cases to just insure $1000.

 

But there can be problems doinf this. Many plans have as a requirement to get the waiver of any pre-existing condition exclusions the requirement that you insure that last $5 even if it means you pay $25 more in premiums to do so. For example, this is from one Travel Guard policy:

 

"The Insurer will waive this exclusion if the Insured meets the following conditions:

 

1) The Insured purchases the plan within 15 days of making his/her "initial trip payment";

2)The amount of Trip Cancellation coverage purchased must equal the full cost of all pre-paid non-refundable Trip arrangements;

3)The Insured must be medically able to travel when he/she pays his/her premium. "

 

In this case, not insuring that last $5 voids the pre-existing condition waiver.

 

On thing about many of those on-line insurance sites such as insuremytrip is that they don't show where the cost breaks are. It's almost impossible to figure out if shaving a couple of bucks off the trip cost will save bigger bucks off the premium.

[iamtrustworthy]

One thing about many of those on-line insurance sites such as insuremytrip is that they don't show where the cost breaks are. It's almost impossible to figure out if shaving a couple of bucks off the trip cost will save bigger bucks off the premium.

 

Hi cruiseco,

 

You're right - it's tough to find the actual price charts. I have them available because most people want to know the potential costs up front.

 

The only exception is CSA which now doesn't have published rates.

[iamtrustworthy]

Do you insure your entire vacation expense or just the portions that are non-refundable?

 

I have an upcoming cruise with air through the cruise line. After final payment, that portion of my vacation could be considered non-refundable if I have to cancel. I have also planned a post-cruise stay on my own. That portion of the vacation is refundable if I have to cancel for some reason. I'm not sure if I should insure the entire vacation or just the cruise and air fare portion.

 

Example - I had a rather unpleasent experience a few years ago dealing with an insurance carrier after I had to cancel a trip because of illness. I had insured that trip for a total of $6,000. The cancellation penaltyf rom the cruise line was only 3,000. The insurance company said that the total penalty was only half of my insured value and therefore they were only obligated to pay me half the penalty. I only got $1,500 when I thought I was covered completely. That is somek ind of "Insurance Company Logic"

 

Any experiences?

 

Thanks, David

 

Hi David,

 

If you're not worried about pre-existing conditions or financial default, you can insure any trip cost you want. There are a few companies, though, that don't require you to cover your entire trip cost, yet still cover pre-existing conditions & financial default.

 

Most trip insurance plans mean the prepaid non-refundable value you'd lose if you cancelled your trip at the last minute. However, some well-known companies (not ones I prefer) mean the total of your prepaid trip costs whether refundable or not. You'll need to watch out for this.

 

I hope this helps.

[naples queen]

Exactly what type of medical conditions are considered pre-existing? Is a person who has had a heart attack in the past, had surgery and is doing well considered to have a condition? How about a diabetic for years who is stable and doesn't adhere to a strict diabetic diet but is on meds?

 

Which are some of the independent travel insurance companies that are good, reputable and reasonable? Can anyone suggest some?

[Flick]

Another point I might add to the discussion. Add a day to your expected arrival home. That way, if you encounter bad weather and have to stay an extra night you will be re-imbursed. Most travel insurance plans expire at midnight of the day you arrive back home from your cruise. Adding a day on the policy doesn't cost you anything but certainly qualifies under trip interuption claims since your return home was interupted.

[cruie4ever]

It pays off to read all info in your policy.We booked a cruise 14 nights to HawaiiR/T.cost was about $2200 & is leaving 4/22 .I was to have hip replacement surgery on 10/30/06 ;but, changed it (for many reasons) to 1/27/07 ,this Sat.

 

I bought ins from Travelex with in the time frame to cover pre existing conditions.However, there is a clause in their which says you must be medically fit at the time of purchasing ins. Well I decided best to cancel the cruise before final payment was due,just in case I couldn't go & have a hassle with Travelex. The way it turns out is that we got back 100% of our deposit & we are allowed to use this ins for one year from 4/22/07.We could book a 8 nighter in Jan 08 & use the ins.

 

Best part is we have another R/T Hawaii cruise booked for Oct 5,2007 15 nights. Same ins company,Travelex:D

[iamtrustworthy]

Exactly what type of medical conditions are considered pre-existing? Is a person who has had a heart attack in the past, had surgery and is doing well considered to have a condition? How about a diabetic for years who is stable and doesn't adhere to a strict diabetic diet but is on meds?

 

Which are some of the independent travel insurance companies that are good, reputable and reasonable? Can anyone suggest some?

 

Hi naples queen,

 

Pre-existing conditions coverage is complicated. Here's how pre-existing conditions, medically stable and the lookback period fit together:

 

1) Any illness, disease, or other condition (no matter how minor) existing in the lookback period is defined as a Pre-Existing Condition if it's been treated, consulted on or had a change of medication during the 60, 90 or 180 day period prior to buying the travel insurance. This is known as the Lookback Period.

 

A Pre-Existing Medical Condition includes any condition that has been examined, treated for, consulted with, received advice on or had symptoms of. This also includes any adjustments or changes in any prescription drugs or medication.

 

2) If there exists a pre-existing condition, then it has to be "medically stable". This means that the person with that pre-existing condition hasn't already taken a turn for the worse and they are able to travel when they buy the insurance. Medically Stable also means that no medical condition is known, foreseen or expected to "take a turn for the worse".

 

If the traveler has the pre-existing condition, they have to be able to travel when they get their travel insurance. Don't call us or order a policy if you're being treated now (and can't currently travel), yet your doctor says you'll be able to travel later. You will not be covered at all. Learn more about Medically Stable here.

 

3) Therefore if the person has a stable pre-existing condition, then the only way the pre-existing condition exclusion can be waived is to buy the travel insurance by the deadline. Important: Keep in mind that the pre-existing condition exclusion is being waived when you buy the travel insurance by the deadline.

 

As for the good companies to use, go to www.google.com and search for "trip insurance". You'll find some good comparison sites that offer reputable companies.

 

I hope this helps.

[iamtrustworthy]

Another point I might add to the discussion. Add a day to your expected arrival home. That way, if you encounter bad weather and have to stay an extra night you will be re-imbursed. Most travel insurance plans expire at midnight of the day you arrive back home from your cruise. Adding a day on the policy doesn't cost you anything but certainly qualifies under trip interuption claims since your return home was interupted.

 

Hi Flick,

 

All the travel insurance plans I'm familiar with will extend their coverage until you arrive home if you are delayed for a covered reason. The drawback to adding extra days is that if the dates on your travel documents don't match the dates you insured, there can be a delay at claim time getting all that straightened out.

 

I hope this helps.

[naples queen]

Thanks for the comprehensive information about pre-existing medical conditions. I know this will help our travelling companions. It is complicated, isn't it.

[Flick]

Hi;

I am assuming you would have other documentation to prove your trip lasted longer such as a hotel bill or transportation tickets showing the correct date of your return.

I have a pre-existing condition so I always pay fast to get that clause waived. Nothing that prevents me from travel-diabetes- but you never know when I might have a blood sugar spike, either up or down, that creates a problem while out of town.

[iamtrustworthy]

Thanks for the comprehensive information about pre-existing medical conditions. I know this will help our travelling companions. It is complicated, isn't it.

 

Yes, there's more than meets the eye to covering pre-existing medical conditions. And on top of that, not all plans work the same way.

[iamtrustworthy]

Hi;

I am assuming you would have other documentation to prove your trip lasted longer such as a hotel bill or transportation tickets showing the correct date of your return.

I have a pre-existing condition so I always pay fast to get that clause waived. Nothing that prevents me from travel-diabetes- but you never know when I might have a blood sugar spike, either up or down, that creates a problem while out of town.

 

Hi Flick,

 

Yes, thanks for clarifying the fact that you have to written proof of a covered delay.

[ldparker]

I am the OP for this thread and never expected this much response to my simple question. It has been very educational and actually quite useful in helping me select trip protection. I now feel confident that I am getting what I truly need and not over-spending.

 

Thanks for all the associated information.

 

David

[Spender Nui]

Hi naples queen,

 

Pre-existing conditions coverage is complicated. Here's how pre-existing conditions, medically stable and the lookback period fit together:

 

1) Any illness, disease, or other condition (no matter how minor) existing in the lookback period is defined as a Pre-Existing Condition if it's been treated, consulted on or had a change of medication during the 60, 90 or 180 day period prior to buying the travel insurance. This is known as the Lookback Period.

 

A Pre-Existing Medical Condition includes any condition that has been examined, treated for, consulted with, received advice on or had symptoms of. This also includes any adjustments or changes in any prescription drugs or medication.

 

2) If there exists a pre-existing condition, then it has to be "medically stable". This means that the person with that pre-existing condition hasn't already taken a turn for the worse and they are able to travel when they buy the insurance. Medically Stable also means that no medical condition is known, foreseen or expected to "take a turn for the worse".

 

If the traveler has the pre-existing condition, they have to be able to travel when they get their travel insurance. Don't call us or order a policy if you're being treated now (and can't currently travel), yet your doctor says you'll be able to travel later. You will not be covered at all. Learn more about Medically Stable here.

 

3) Therefore if the person has a stable pre-existing condition, then the only way the pre-existing condition exclusion can be waived is to buy the travel insurance by the deadline. Important: Keep in mind that the pre-existing condition exclusion is being waived when you buy the travel insurance by the deadline.

 

As for the good companies to use, go to www.google.com and search for "trip insurance". You'll find some good comparison sites that offer reputable companies.

 

I hope this helps.

 

 

Thanks for the good information.

[chasetf]

......I had a rather unpleasent experience a few years ago dealing with an insurance carrier after I had to cancel a trip because of illness. I had insured that trip for a total of $6,000. The cancellation penaltyf rom the cruise line was only 3,000. The insurance company said that the total penalty was only half of my insured value and therefore they were only obligated to pay me half the penalty. I only got $1,500 when I thought I was covered completely. That is some kind of "Insurance Company Logic" Any experiences? Thanks, David

Unfortunately it is. That type of logic is also used for house insurance. If your house is valued at $100K but you only have $50K of insurance and you suffer a $40K loss, they will only pay you $20K.

[Spender Nui]

Another question regarding a Pre-Existing Medical Condition. Does it apply solely to the traveler or does it also include immediate family who might become ill or pass away?

[iamtrustworthy]

Another question regarding a Pre-Existing Medical Condition. Does it apply solely to the traveler or does it also include immediate family who might become ill or pass away?

 

Hi Spender Nui,

 

Every plan has different definitions of who is a family member or traveling companion, but the plans I use allow cancellation / interruption for the traveler, immediate family member (including grandparents & grandchildren) & their traveling companion.

 

The part with traveling companions is that if they cancel / interrupt their trip for the same reasons, then the traveler can either cancel / interrupt their trip or the plan will pay the cost of the single supplement.

 

Also, Pre-Existing Medical Condition coverage also includes medical treatment while traveling for the insured person(s).

 

I hope this helps.

[Spender Nui]

iamtrustworthy, thanks for the clarification.

[Spender Nui]

iamtrustworthy, thanks for the clarification.

[minniemom]

I looked at the google.com for travel insurances, and only got more confused.

My parents are 81 so I know I need to get it for them, but I am early 40's. Do I need to insure for prexisting for my folks, and then just get cancellation ins for me, if they end up getting sick?? Just am not sure which co. or what to do?

[cruiseco]

I looked at the google.com for travel insurances, and only got more confused.

My parents are 81 so I know I need to get it for them, but I am early 40's. Do I need to insure for prexisting for my folks, and then just get cancellation ins for me, if they end up getting sick?? Just am not sure which co. or what to do?

 

The definition of a pre-existing medical condition in almost all cases applies to everyone -- you, your traveling companions, even family members not traveling with you.

 

So, let's say that your parents have to cancel for a medical reason that under the plan definition is considered to be "pre-existing." If they met the requirements to get the waiver of the pre-existing condition exclusion then they're OK.

 

But what if you didn't? Say you missed the purchase time frame and thus don't qualify for the pre-existing condition waiver. You're going to be out of luck. Even though you may not have a pre-existing condition, the person whose medical problem is causing you to cancel does.

 

If you feel that your parents need coverage for pre-existing medical conditions it's almost a certainty that you do too.

[jstpshe]

Why You Should Buy Insurance Before Your Next Cruise

By Heidi Sarna

March 7, 2007

It's not difficult to imagine all of the things that could go wrong on a cruise. Terrorist attacks, hurricanes, political upheaval, war, broken down ships, new ships not finished on time, cruise lines going out of business, or a sudden illness are just some of the snafus that could get in the way of you and the cruise of your dreams. Or maybe it's as simple as a flat tire on the way to the airport that causes you to miss your flight to the ship. Who knows?

 

On the other hand, how many times to things actually go wrong? Hardly ever.

 

It's that "what if" obsession that drives some of us to buy a piece of paper indemnifying us against the unknown. But is travel insurance really necessary?

 

"Insurance was sure a big help to those who bought it for cruises during the 2004 and 2005 hurricane season, but for 2006 it was a waste of money because there weren't any hurricanes," says Cruise Week editor Mike Driscoll.

 

In today's hyper-sensitive, CNN-will-find-out world, cruise lines have been making extraordinary efforts to appease disappointed passengers when something happens that effects the whole ship, whether they bought insurance or not. Typically, a line will reschedule a canceled cruise because of mechanical problems or a major itinerary change, for example, and offer passengers big discounts on future cruises. After all, they don't want the bad press they'd get if they cheated hundreds or thousands of people. Still, keep in mind that there are no set rules on how a line will compensate you, over and above a refund, in the event of a cancellation.

 

Now, if you personally need to cancel your own cruise for some reason, most lines give you every cent back if you cancel at least two to three months before your departure date, although details vary from line to line. If you cancel closer to departure, you'll usually get a partial refund up until about 15 to 30 days before the cruise. If you cancel the whole thing just a few days beforehand, you'll be out the entire cost of the trip.

 

"You buy insurance if you're concerned about medical issues or work commitments possibly preventing you from taking a cruise at the last minute," adds Driscoll. "If you're just worried about missing a flight and not getting to the ship on time, go a day early and spend your money on a hotel and nice dinner instead," he says.

 

If you're anxious about potential medical problems occurring during your trip, then travel insurance may be vital to you. Except for the very smallest ships, most cruise ships have an infirmary staffed by a doctor and a nurse or two; but in the event of a dire illness, the ship's medical staff can only do so much. Therefore, you may want a policy that covers emergency medical evacuation and, if your regular insurance doesn't cover it, the potential cost of major medical treatment while away from home.

 

There are policies sold through the cruise lines (with details varying from line to line) and others sold independently. Both sources have pros and cons.

 

A good travel agent can tell you about policies sold through the cruise lines and ones sold independently of the lines. No matter which you choose, it's absolutely crucial to read the fine print because terms vary from policy to policy.

 

Both kinds typically reimburse you in some way when your trip is affected by unexpected events (such as canceled flights, plane crashes, dockworkers' strikes, or the illness or death of a loved one, as late as the day before or day of departure) but not by "acts of God," such as hurricanes and earthquakes (the exception being if your home is made uninhabitable, putting you in no mood to continue with your cruise plans). Both also typically cover cancellation of the cruise for medical reasons (yours or a family member's); medical emergencies during the cruise, including evacuation from the ship; lost or damaged luggage; and a cruise missed due to airline delays (though some only cover delays over 3 hours). Neither kind of policy will reimburse you if your travel agent goes bankrupt, so using a travel agency you're very familiar with or who has been recommended to you is the safest precaution you can take. (And, of course, always use a credit card, never a check. If a corrupt travel agent cashes it, or a decent one just goes out of business, then you could get screwed.) Most cancellation policies also do not cover cancellations due to work requirements.

 

Ins and Outs of Third-Party Coverage

 

Even though travel agents get a commission for selling both cruise line policies and independent policies, most agents and industry insiders believe that non-cruise line policies are the best bet because some, such as Access America (tel. 866/807-3982; http://www.accessamerica.com), will issue insurance to those with preexisting medical conditions if the condition is stable when purchasing the insurance (a doctor would have to verify this if you ever made a claim) and if you purchase the policy within 14 days of your initial deposit on the cruise. Reputable insurers like Access America and Travel Guard International (tel. 800/826-4919; http://www.travelguard.com) offer supplier-default coverage that kicks in if a cruise line goes bankrupt, which a handful did between 2000 and 2003. Both of these companies' websites maintain lists of the lines they cover (or no longer cover), which is helpful in figuring out which lines may be considered financially shaky. Further, a well-connected, respectable travel agent should see the writing on the wall months before a cruise line fails -- commissions will slow or stop being paid, phone calls won't be returned, and industry trade publications will report on any problems. "Personally, I recommend a third-party insurer such as Travel Insured or Travel Guard as they provide greater benefits and value than the cruise lines' protection," says Sherry L. Kennedy, owner of Vacation Shoppe in Satellite Beach, FL. The less customer-service-driven cruise sellers may not stop pushing a troubled cruise line, however, and may continue selling these lines up to the very last minute.

 

According to the Fair Credit Billing Act, if you paid by credit card (and again, you should always pay with a credit card), you'll generally get your money back if you dispute the charge within 60 days of the date the charge first appears. Also, while many lines post a multimillion-dollar bond with the Federal Maritime Commission, creating a fund from which they can reimburse creditors should they fail financially, it's no guarantee you'll get all or any of your money back. Technically, the bond covers cruise payments for all passengers embarking from U.S. ports, but because the line would have banks or other vendors to pay off first, you'd likely get only pennies on the dollar, if that. Still, it's better that a cruise line have a bond than not -- and if you learn that a line is having trouble making bond payments, it may be a sign of serious financial woes.

 

The Ups and Downs of Cruise Line Coverage

 

Cruise lines offer their own policies, many of them administered by New York-based BerkelyCare (tel. 800/797-4514). If you opt for this type of policy out of sheer convenience (the cost is added right onto your cruise fare), keep in mind they do not cover you in the event of a cruise line bankruptcy (though using a credit card can save you here; see above) or for cancellation of your cruise due to preexisting medical conditions, which is usually defined as an unstable condition existing within 60 days of your buying the insurance. Some lines' policies will issue a cruise credit for the penalty amount if a medical claim is deemed preexisting, and issue you cash if you cancel for a covered reason. Generally, the cancellation penalty imposed by the cruise line would be 100% of the cruise fare, for example, if you cancel a few days before the cruise (assuming you've paid in full), or it could be just $300 if you cancel right after making the initial deposit months before departure. Be sure the coverage offered is truly an insurance policy. In some cases, the coverage is really a cancellation waiver that provides a credit for a future cruise under limited conditions.

 

Sounds like the third-party policies win hands down, right? Well, to make it just a little more complicated, a handful of cruise line policies are actually better in some areas than outside policies. For example, Princess Cruises has an insurance policy that allows you to cancel for all the reasons that an outside policy would (illness, injury) and get cash reimbursement, or they will let you cancel for any reason whatsoever (from fear of flying to a bad hair day) up until the day of departure and have 75% to 90% of the normal penalty for canceling your cruise applied toward a future trip. Norwegian, Celebrity, and Royal Caribbean offer similar "any reason" policies, which provide a cruise credit for up to 75%. For an extra $100 above their standard insurance fee (or $250 if purchased alone), high-end Silversea allows you to cancel cruises for any reason 1 to 14 days before sailing and get a credit for 100% of the penalty amount (including airfare, if booked through Silversea), applicable toward any cruise within the following 12 months. Many other lines offer similar cancellation plans. The cruise lines using the BerkelyCare policies also reimburse passengers for days missed on a cruise -- say, if you missed your flight and had to join up with the cruise two days later -- covering hotel costs during the missed days and transportation to the ship (though typically only to a max of $500). Keep in mind, cruise line policies do change, so before purchasing insurance be sure you understand exactly what you're getting.

 

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