What does cruise travel insurance actually cover? Is it worth investing in cruise travel insurance?
The answers may not be straightforward, as we’ll explore in this guide. It’s essential to remember that cruising isn’t always a smooth ride. Even meticulously planned cruise vacations can sometimes encounter unexpected hurdles.
You might find yourself needing to cancel a cruise suddenly due to an illness, such as COVID-19 or the flu. Alternatively, you could become ill while on the cruise and require emergency medical attention. There’s also the chance that your flight to the ship is canceled, causing you to miss the departure. Or perhaps your ship arrives late at the end of the journey, and you miss your flight back home.
In such instances, having cruise travel insurance can be advantageous — but it’s important to understand that it’s not a guarantee.
Different cruise insurance policies can vary significantly in what they cover, so it’s crucial to read the fine print before making a purchase to be aware of what you’re getting.
That’s why you should familiarize yourself with the important aspects of cruise insurance. Although it may seem overwhelming at first, being informed will provide you with comfort if something goes awry during your cruise vacation.
What is included in cruise travel insurance?
Most cruise insurance policies encompass a broad spectrum of potential issues that can arise both before and during your trip at sea.
Typically, these policies offer reimbursement for cruise cancellation costs due to unexpected emergencies. They also cover trip interruptions, such as needing to fly home in the middle of your cruise because of a breakdown. These aspects are often classified as trip cancellation and trip interruption insurance, which are generally included in a comprehensive travel insurance policy.
Some policies might reimburse you for expenses incurred due to delays or cancellations in your flight that lead to missing your cruise departure. They often cover out-of-pocket costs related to lost or delayed baggage as well.
Most importantly, many travel insurance plans cover medical expenses incurred during your cruise. Some may even provide coverage for evacuation from a foreign location if a medical emergency occurs while you’re traveling.
According to Allianz Global Assistance, 53% of claims related to cruise travel are attributed to illness of the policyholder, while 14% stem from injury. Other claim reasons include illness in a family member (8%), the death of a family member (4%), and illness in a traveling companion (4%).
Keep in mind that these percentages also account for illnesses and injuries occurring just before a trip. However, many of these claims result from health incidents that happen during the cruise itself.
As James Page, a senior executive at AIG Travel, notes, “People often take risks on vacation that they wouldn’t consider at home, whether it’s jet skiing, riding scooters in unfamiliar places, or hiking unknown terrains.”
Some policies also offer coverage in the event of a financial default by a travel provider. If your cruise line ceases operations before you embark, you might be able to recover some or all of your funds.
However, it’s important to understand that cruise travel insurance does have its limitations. Generally, providers will not cover losses due to concerns about an outbreak of illness unless you opt for a more expensive “cancel for any reason” upgrade.
Where can you purchase cruise travel insurance?
You can secure a travel insurance policy directly from your cruise line during the booking process, through your travel agent, or through third-party insurance providers and aggregators like InsureMyTrip or TravelInsurance. Some credit cards also offer travel protection benefits.
Third-party insurance options
Some reputable third-party insurers include AIG Travel, Allianz Travel Insurance, Travelex Insurance, and American Express Travel Insurance. Utilizing a travel agent or aggregator can help you find specific policies tailored to cruising.
Many plans now include features specifically aimed at cruise travelers, such as missed connection coverage (reimbursing costs for rebooking travel to the next port if you miss your cruise) and missed port-of-call coverage (providing compensation if the ship skips a scheduled stop due to issues like weather or mechanical failure).
Credit card protections
Certain premium credit cards offer travel insurance benefits equivalent to standard policies. For example, premiums paid with some cards like the Chase Sapphire Reserve® may cover trip cancellations, interruptions, emergency medical expenses, and evacuations, noting that cruise lines are classified as common carriers.
Before relying solely on a credit card for insurance, it is crucial to review the specific benefits and restrictions comprehensively, ensuring that the trip was partially or fully paid for with that card to benefit from these protections.
Cruise line insurance policies
Cruise lines often encourage customers to purchase their travel protection while booking. If you choose this route, don’t hesitate to ask for explicit details on coverage limits, and compare these with independent policies or benefits from your credit card.
Be aware that cruise line policies may only offer future cruise credits instead of full refunds for cancellations, and may not cover financial defaults, which is typically included in third-party plans.
What are the costs associated with cruise insurance?
Insurance costs typically range from 4% to 8% of your total nonrefundable trip expenses. Some basic plans might be less than 4%, while premium options could cost up to 12% of your total trip expenses.
Reputable insurers usually provide a “free-look period” where you can review the policy and receive a full refund on your premium if you decide to cancel, often with a nominal administration fee.
Is cruise travel insurance necessary?
Choosing to buy travel insurance ultimately depends on your personal circumstances. Would you be financially impacted if you had to cancel your trip suddenly? Would you be able to afford an emergency evacuation from a distant port?
Here are factors to think about when making your decision:
Your medical insurance may not cover you abroad
For U.S. citizens traveling internationally, most private insurance plans will not provide coverage. Moreover, Medicare has very limited overseas benefits, and some plans may not cover foreign emergencies. It’s wise to consult your provider beforehand to understand what is covered.
The costs of a medical evacuation
Medical evacuations can be exorbitantly expensive. A repatriation flight for serious medical issues may cost between $70,000 and $180,000, and domestic transports are often over $30,000. Without medical evacuation coverage, you may face significant financial burdens.
Weather events can disrupt cruises
Weather-related incidents that affect itineraries can arise, particularly in hurricane season. If severe weather leads to delays or cancellations, travel insurance can be invaluable in mitigating unexpected costs.
Considerations for medical assistance
If something goes wrong, having access to a professional assistance service can be crucial. Many insurance policies offer 24/7 support for medical emergencies, including arranging necessary transportation and treatment.
Preexisting condition coverage
When cruising, ensure you are fully covered for preexisting conditions. If you need medical attention during your trip, you may not be covered without prior approval from your insurer. Timely booking can also affect your eligibility for these coverages.
Conclusion
While cruise insurance may not be necessary for every traveler or every journey, it can provide significant peace of mind. Take the time to research options, compare plans, and fully assess your individual risks.
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