Trip Insurance Question--cost of nonrefundable trip arrangements

[mcmarya]

I'm exploring insurance options for the upcoming cruise I just booked. The non-refundable cost of my trip comes in just under one of the tier amounts--i.e. a few $ more would increase the cost of insurance by $75. In reading the information from my travel agent, it appears that I will be charged a $100 per person cancellation fee if I cancel the cruise for any reason. I am concerned about coverage for pre-existing conditions since my father is 93--he is healthy but has seen his Dr. routinely in the past 3 months. So, I need to cover the total non-refundable cost of the cruise. How do I treat this cancellation fee? Supposedly it is waived in some cases--I would hope a death in the family and possibly if another cruise is booked. I'd rather gamble on having to pay it than pay the extra $75 for the insurance.

 

I'll call the company to be certain, but the exact language for the pre-existing condition waiver is "you purchased trip cancellation coverage that covers the full cost of all your nonrefundable trip arrangements." The cancellation fee that could be charged is not part of the cost of my nonrefundable trip arrangements. Any thoughts?

[cruiseco]

In reading the information from my travel agent, it appears that I will be charged a $100 per person cancellation fee if I cancel the cruise for any reason. I am concerned about coverage for pre-existing conditions since my father is 93--he is healthy but has seen his Dr. routinely in the past 3 months. So, I need to cover the total non-refundable cost of the cruise. How do I treat this cancellation fee?

 

I't's not real clear from your post but I'm going to assume that the $100/person cancel fee is one imposed by the travel agency over and above the cruise lines actual cancellation fee. And I'm also going to assume that you will only be charged at the time of cancellation, meaning that the amount is not charged to your credit card at the time of your initial deposit and refunded later if you do not cancel. It's not pre-paid.

 

How that fee is handled/claimed in the event of a cancellation depends on the insurer. For example, CSA has a pretty strict policy of insuring only PRE-PAID, non-refundable payments. If that fee is not in fact pre-paid they might not cover it.

 

Other insurers will cover travel agency penalties as long as they are included in the insured trip cost even if they are not pre-paid.

 

Remember, some insurers do not require that you insure every last dollar of your trip costs in order to get the pre-existing condition coverage. If that's the case, I'd be tempted to not insure the penalty amount if it bumps you into the next higher cost/premium bracket. It's not the best use of your money to spend $75 to insure $200.

 

The best course of action would be to find the plan that most closely meets your needs and call them to ask how you should handle the agency's penalties. Better yet would be to email them so you have a written record of their response. They'll have their customer service email address on their web site.

[mcmarya]

Yes, the fee is imposed by the travel agency to deter those who are constantly booking and canceling before final payment time. It is not an up front cost. I'm not sure how they collect it if the cancellation occurs at the last minute and the entire cost of the cruise is non-refundable. They would then have to bill me for the penalty--I would think they would be reluctant to do so in the case of a death in the family. The language is in the contract, but the agent said it is up to the discretion of the agency owner to waive the fee depending on circumstances. Hopefully it won't matter. Anyway, if I purchase the lower cost insurance it will cover the full cost of the non-refundable trip arrangements.