Should I buy travel insurance?

[stephenandrew]

I've jumped in on threads like this before---I always find myself in the minority, in that, I too do not purchase travel insurance. I certainly don't begrudge anyone the opportunity to buy travel insurance. Everybody has a different toleranace for risk--to me, the cost of the insurance is way too high relative to the likelihood that I will need it. Others have more of an aversion to risk, and they have the opportunity to mitigate it by buying insurance. I am certainly not an expert in insurance, but on relative value basis, I am pretty certain that travel insurance costs more per dollar of coverage than most other types of insurance, e.g. homeowners, auto, life, etc. Just becasue someone pays for an "expensive" product doesn't make them stupid--hell, if that were the case, everybody who bought a Luxury Automobile would be stupid.. But to say the insurance is cheap is (IMHO) mistaken.

[Gypsea]

It's a fifty fifty shot here. Do the math. Flip a coin. The odds are always 50/50. No matter if heads come up 100 times in a row. Will you need the insurance? Who the hell knows? Chances are good if you have it you won't but the odds are still 50/50. That never changes. Look at the scads of people who had it and needed it and all the others who didn't and needed it. Frankly, I am shocked at how much goes wrong.

 

As an agent I would NEVER dissuade someone from buying it but I do not push it either. I have sailed every cruise without it myself and had no problem in ten cruises but I may be buying the cheapest policy on insuremytrip this time just because I am spending more than usual (certainly not the big bucks you people are speaking of, though).

[tlmlb]

OK, the advice that I have to offer is to ignore that offered by tlmlb, which approaches life as nothing more than an arithmetical game, without any heed for the effects on people of "asset allocation" and "risk/reward ratio" decisions.

 

Insurance is a commodity based upon statistical outcomes. It can be reduced to mathematical probabilities and, imo, should be decided upon without emotional attachment. Some people cannot emotionally separate themselves from the travel dollars they feel are at risk. I happen to be able to that quite easily, being comfortable with the decisions I make and moving on, whatever the results.

 

The most important things in life should be decided with a good dose of emotion. However, the decision to purchase insurance is not one of those. Those who are wise enough to realize this and differentiate particular situations are lucky indeed.

 

I assure you that although my analysis seems heartlessly cold, it is not because I am an unfeeling individual. It is just that this is an emotionless numbers decision whether to insure or not.

 

Planning a trip and deciding on the next adventure, that's emotional!

[cruiseco]

I disagree with the idea that whether or not to purchase a plan can be determined on strictly mathematical terms. Doing it that way leaves out one non-quantifiable factor: risk tolerance. Everyone's idea of what is and what isn't an acceptable risk is different.

 

There's only two rules when it comes to travel insurance:

 

1) If you are traveling somewhere where you will not be covered in the event of a medical emergency of require a medical evacuation you'd be just plain nuts not to get some sort of supplemental policy

 

2) Everyone should know what the avaiilable plans cover and don't cover and how much the coverage costs. Without that information naking a reasonable buying judgment based on whatever your particular risks happen to be is impossible.

 

Regarding #1 - I've been in the travel business a long time and I can assure you that well over half of the traveling public has no idea of what coverage they currently have will or won't apply when traveling out of the country. And a big portion of those that think they do are wrong. Everyone, without exception should call their regular health insurance supplier and find out if they're covered during their planned trip. Many get a shock to learn that they've been cruising without coverage and many who buy additional coverage are pleasantly surprised to know that it's not needed.

 

If all you need is medical/medical evac coverage and don't want cancellation coverage don't buy a full-blown plan. For instance, a 50 year-old can get a plan with $50,000 medical and $250,000 in evac for $19.

 

Once you know what your medical coverage situation is you can get a better idea of the value of buying a plan that does include the trip cancellation coverage.

 

Say that same 50 year-old is booking a $1500 cruise. That same CSA plan prices out at $64.

 

If he needs the medical/medical evac coverage anyway, then he can consider the amount over the $19 ($45) to be his cost for the cancellation benefit (this is ignoring the various misc additional coverages). He's paying 3% of his trip cost to insure the cost of the trip. Now he can make a decision based on that.

 

If he really doesn't need the medical/medical evac coverage because he already has that coverage in place then he can consider the full $64 to be the cost of the cancellation coverage. That's about 4.3%.

 

Would you spend 3% of your trip cost to insure against cancellation penalties if there a serious medical problem with you or a family member? How about 4.3%? I don't know. Nobody but you knows because nobody but you knows your tolerance for the risks that are unique to you. Have 90 year-old grandparents? Have young kids that are seemingly always catching something? In those cases your risks of having to cancel might be a little higher than average. If those situations don't apply then your risks might be a little lower. For some, a 3% premium to cover the cancellation risk is a screaming deal. For others it's a waste of money because hat person's risk tolerance is markedly higher.

 

Just like with anything else, you'll hear all sorts of advice. Always buy it! Never buy it! Neither is valid since they don't take into account the circumstances that are yours alone.

[jff50]

Very well stated by cruiseco--thanks.

[psychtobe]

tlmlb - give it up!

 

I've tried reasoning on this board before - it doesn't work!

 

Many people fundamentally misunderstand some of the basic concepts involved in insurance, risk vs reward, etc. Travel insurance is just one instance of generally poor financial decision-making in many people's lives - it's the reason that many people live paycheck to paycheck, and why the average household has less than $50,000 in retirement savings.

 

I will agree that under truly unusual circumstances, travel insurance is indicated for some travelers. However, for the vast majority of cruisers, travel insurance is basically a scam.

 

I insure my home because I can't afford a loss of hundreds of thousands of dollars.

 

I insure my car for liability for the same reason.

 

However, I don't insure my car for collision or comp - because the expected return is too low for the cost of the coverage. My car is worth just a couple thousand dollars - like the average cruise - and if it gets totaled, I live with the loss.

 

To the person who saved $10,000 for their cruise - buy the insurance if it makes you feel better! If this is the trip of a lifetime and you'd be heartbroken to lose it then a few hundred bucks is well spent!

 

But for most of you taking another routine cruise to Mexico, Alaska, the Caribbean, and Europe - and who have medical insurance already (you're not cruising if you can't afford medical insurance, are you? are you????) - then travel insurance is, in the long run, a losing bet.

[snooks1]

We haven't purchased insurance, but next time we travel, we certainly will. The morning we were to leave for a cruise, my husband became very sick to his stomach. We had to take a later flight than we were scheduled on, plus he travelled not feeling well and was sick the entire 5 hours we were on the flight. Had we purchased insurance we wouldn't have had the stress which made us both feel worse because we were afraid we were going to lose not only our trip, but all of our money.

[lesharona]

My sister tells me I need to purchase our Travel Insurance

2 weeks after booking. I have always thought you could purchase it

up to the time you make final payment. Who is right?

Our cruise is next March. And I believe final payment will be mid December.

This is when I planned purchasing the insurance.

[S.S.Oceanlover]

My sister tells me I need to purchase our Travel Insurance

2 weeks after booking. I have always thought you could purchase it

up to the time you make final payment. Who is right?

Our cruise is next March. And I believe final payment will be mid December.

This is when I planned purchasing the insurance.

 

If you want pre existing conditions covered she is right. If you just want insurance and have no pre existing conditions you can wait and buy it up to the time of departure.

*note: Travelex gives you 21 days to buy the insurance to cover pre existing conditions.

 

Bill

[atlcple2]

I was just thinking and I purchased the travel lite insurance thorugh travelex online and I don't recall it asking me when I booked my cruise...it just asked me the dates I would be traveling, what cruise line and airline. Not worried about pre-existing conditions, so I'm not worried, but thought I would pass that information along.

[S.S.Oceanlover]

I was just thinking and I purchased the travel lite insurance thorugh travelex online and I don't recall it asking me when I booked my cruise...it just asked me the dates I would be traveling, what cruise line and airline. Not worried about pre-existing conditions, so I'm not worried, but thought I would pass that information along.

 

I went through the motions like I was going to buy a Travelex policy through http://www.insuremytrip.com and they asked if it was a cruise with air or without, or air only.

I also did the same thing on http://www.Travelex.com It also asks you for your tour operator, cruiseline, or airline.

 

Bill

[cruiseco]

My sister tells me I need to purchase our Travel Insurance

2 weeks after booking.

 

Most third-party plans will give you additional coverages or benefits if you buy a policy within a certain time frame after making the first payment on the trip (7 - 21 days depending on the policy). This can include financial default coverage, terrorism coverage, increased baggage coverage and what os for most folks most important -- coverage for pre-existing medical conditions.

 

have always thought you could purchase it

up to the time you make final payment. Who is right? [/Quote]

 

You could both be right. With most third-party plans you can actually purchase a policy up any time up to the day prior to your departure. But some plans offered directly by the trasvel supplier have to be purchased immediately or no later than the date of the final payment. This applies to most plans offered directly by the cruise line.

 

Our cruise is next March. And I believe final payment will be mid December. This is when I planned to buy

 

If you're buying a cruise line plan you're probably not giving up anything by waiting. But if you are using a third-party plan check to see what additional benefits you'd get by buying immediately. If any are important to you then you will have to decide if it's worth it to buy now (assuming you're still in that 7 - 21 day time period).

[lesharona]

If a person is on a daily prescription, is this a pre existing condition? So many people who are healthy do take a prescription everyday. So I am confused.

 

thanks,

Sharon

[jerseygirl3]

Lesharona, no, daily prescriptions are not considered a pre-existing condition, provided the condition you take the prescriptions for is stable at the time of booking, and no changes in that medical condition took place during the time period prior to booking the cruise (time period varies depending on policy, most are 60 days). So let's say you have hypertension and take blood pressure meds, as long as your hypertension remained stable during the 60 days prior to making the deposit for your cruise, you do not need a pre-existing condition waiver. In other words, you do not have to purchase your insurance immediately; you can wait. If something happens between the time you book your cruise and purchase insurance, that would not be considered a pre-existing condition (you didn't have it when you booked), so that would be covered as well.

[atlcple2]

"I went through the motions like I was going to buy a Travelex policy through http://www.insuremytrip.com and they asked if it was a cruise with air or without, or air only.

I also did the same thing on http://www.Travelex.com It also asks you for your tour operator, cruiseline, or airline.

 

Bill"

 

Yes, it did ask me those questions, just not when I booked them. I booked directly through Princess for the cruise and since we are flying Airtran to FLL, I had to list "other" for the airline as it wasn't listed on the airline list. Either way, I am happy with the price for the insurance and we aren't worried about pre-existing conditions, so it was a great deal. Thanks again Bill for the info. Well worth the $$.

 

Scarlet

 

ps...how do you get the quotes to be highlighed in the box?

[cruiseco]

If something happens between the time you book your cruise and purchase insurance, that would not be considered a pre-existing condition (you didn't have it when you booked), so that would be covered as well.

 

This is not correct. It doesn't matter if the condition existed when you booked the trip. What matters is if the condition existed when you purchased the insurance.

 

For example, say you book a cruise today but don't purchase the insurance. A month later you are diagnosed with cancer. You then go out and buy a policy.

 

Even though the cancer was not present when the cruise was booked it is present at the time the insurance is purchased and thus is considered to be a pre-existing condition. If the cancer subsequently causes the cruise to be cancelled the claim would be denied.

[S.S.Oceanlover]

Yes, it did ask me those questions, just not when I booked them. I booked directly through Princess for the cruise and since we are flying Airtran to FLL, I had to list "other" for the airline as it wasn't listed on the airline list. Either way, I am happy with the price for the insurance and we aren't worried about pre-existing conditions, so it was a great deal. Thanks again Bill for the info. Well worth the $$.

 

Scarlet

 

ps...how do you get the quotes to be highlighed in the box?

 

To quote I just clicked on the quote button in the bottom right hand corner of the post I am replying to.

 

I found AirTran on the list. I looked through all the Air ... and nothing. Further down in the list it is listed as AirTran Airways. AirTran was spelled as one word and was listed right after AirKenya. :) I wouldn't thought to look further down the list but since you mentioned it wasn't there and I usually fly AirTran all the time I know I insured them before. OK well at least I thought I did. :D

 

Anyway just glad you saved some $$. :)

 

Bill

[jerseygirl3]

Cruiseco, you are correct. Actually, when I reread my post, I didn't articulate it correctly. If you book a cruise and don't have a pre-existing condition, you don't have to purchase the insurance within a set amount of days from deposit. You can purchase it anytime. Let's say you purchase the insurance 6 months after making deposit, as long as you are medically stable at the time you purchase the insurance, you are okay if you develop something after that. In other words, you book your cruise in January for travel in September. You decide in June to purchase your insurance (well outside the window for waiver of pre-existing condition, but you don't have a pre-existing condition, so no problem, mon). In August you develop a medical condition. You are covered since the condition was not present when you purchased the insurance.

 

Thanks for pointing out my error. Insurance is confusing enough without people like me making it even more confusing!!!LOL

[juliepaule]

O.K. folks you got my interest.

 

My girl friend have done 6 cruises. Leaving our husbands at home for a girl night out you would say.

 

We always purchase both health and cancellation insurance. Our medical plan in Ontario would not cover the US cost of any medical needs. Age and the cost of the cruise is the factor in the cost of your insurance. Neither of us could afford to loose the deposit or the cost.

 

Well out of the 6 cruises. Twice we had to cancel. First time I was involved in a car accident just before Christmas and the cruise was end of January. My friend went single and it did not cost her any more $. I, had to cancel and I received all my money back (all except the cost of the insurance.

 

Then during the SARS in Toronto. My friend ended up with pneumonia and her doctor would not let her travel. We cancel and got everything back......

 

Botton line is what's an extra 130.00 (Canadian) for this give you peace of mind. Specially now since I have just booked for an April 2006 10 days cruise. Why take the chance.

 

I have medical insurance with CARP (AARP) because we have a log cabin in PA and travel there many times.

 

So, as you can see.. it is a 50/50 thing.

 

Julie

[jff50]

It's a fifty fifty shot here. Do the math. Flip a coin. The odds are always 50/50. No matter if heads come up 100 times in a row. Will you need the insurance? Who the hell knows? Chances are good if you have it you won't but the odds are still 50/50. That never changes. Look at the scads of people who had it and needed it and all the others who didn't and needed it. Frankly, I am shocked at how much goes wrong.

 

As an agent I would NEVER dissuade someone from buying it but I do not push it either. I have sailed every cruise without it myself and had no problem in ten cruises but I may be buying the cheapest policy on insuremytrip this time just because I am spending more than usual (certainly not the big bucks you people are speaking of, though).

 

Reading these posts would make you think that people collect on their travel insurance a large percent of the time. Probably the only 50% involved in this equation is that about 50% of premium is paid out in claims. Think about the actual numbers involved--if the average loss that you need insurance for (i.e. the cost of the cruise or a medical evacuation) is $10,000, the average premium is $100, and the policy pays out 50% of premium--you would only collect that $10,000 once in 200 cruises.

 

If the odds of needing travel insurance were 50/50, the companies that sell it wouldn't stay in business very long.

[bplazo]

I have been on three cruises and have used it twice.

[jff50]

I have been on three cruises and have used it twice.

 

Does this mean that people should look upon it as a money making proposition.

[bplazo]

What do you mean by money making? The insurance paid for my out of pocket expenses from one of the hurricanes last year and a doctors office call for my daughter the year before that. I did not MAKE money.

[fla gang]

Just ask my two clients that had to cancel a 14 day Alaska trip 6 days before departure because of medical reasons, if they were glad that I offered it to them. They could have lost a lot of money.

 

Barry

[billet]

We bought travel insurance and thank goodness we did. Our luggage was lost for almost the whole cruise and when it finally arrived a lot had been stolen out of the cases. The insurers covered all 3 of our groups losses without a question. Insurance provides peace of mind and that is something I wanted and got.