Am I missing something???

[JCJR]

I understand why others are stating not to include taxes and port charges in the cost of the cruise but as I see it that only works for pre trip cancellation.

 

If your on the trip and have an interruption those fees will not be factored into the cost of missing a day or more. Is this correct? I am traveling with 4 and the cost of port charges and taxes are $440 on a 7 day cruise, if I have to leave half way on an emergency I loose out on $220 if not included in the cost of my trip.

 

I'm I understanding this correctly?

[cruiseco]

I understand why others are stating not to include taxes and port charges in the cost of the cruise but as I see it that only works for pre trip cancellation.

 

If your on the trip and have an interruption those fees will not be factored into the cost of missing a day or more. Is this correct? I am traveling with 4 and the cost of port charges and taxes are $440 on a 7 day cruise, if I have to leave half way on an emergency I loose out on $220 if not included in the cost of my trip.

 

I'm I understanding this correctly?

 

In general, the insurers will only cover for trip cancellations if the insured costs are pre-paid and non-refundable. In most cases with cruises the fees/taxes fail the non-refundable test so if you cancel you can't claim those -- you would be "double-dipping" since the cruise line is also going to send you a check to cover those.

 

But once you set foot on the ship those fees/taxes become non-refundable so they can be covered by the trip interruption coverage. The trip interruption benefit will cover whatever your loss is as of the date you interrupt the tip. It's not necessarily a strictly pro-rated formula.

 

So if you're on a 10-day cruise that costs you $1000 plus $200 in taxes/fees (you can see I'm trying to make the math easy here) and at the end of the 6th day you need to cut your trip short. What's your loss?

 

You're losing the value of the 4 days of the cruise you're forfeiting ($400) plus you're losing 40% of any other non-refundable charges not included in the cruise fare. Since once you begin the cruise the fees/taxes are now non-refundable you would also file a claim for 40% of that amount ($80). You'd claim $480 total.

 

It's for reasons like this that most insurers are willing to pay a trip interruption benefit of up to 150% of the amount insured for trip cancellation. They know that your total loss exposure in the case of an interruption can actually be more than your potential loss in the case of a cancellation.

[JCJR]

I thought the extra payout on interuption was for incendentals incurred trying to get back to the ship or home from the port.

 

What I understand you are saying is to not include the port fees and taxes and if you end up using the trip interruption you can claim the taxes and port fees at that point? Is this correct?

 

Another question, if I have to leave on the 2nd day of a 7 day cruise and my ports were on day three can I claim all the port charges and 2/7 of the taxes or 2/7 of port chr and tax?

[cruiseco]

I thought the extra payout on interuption was for incendentals incurred trying to get back to the ship or home from the port.

 

 

What's covered under the trip interruption benefit varies from insurer to insurer. For example, this is from a TravelSafe plan:

 

"Trip Interruption: Benefits will be paid, up to the Maximum Benefit Amount, for the non-refundable, unused portion of the prepaid expenses for land or water Travel Arrangements and the Additional Transportation Cost paid to return home or rejoin the Trip, when You are prevented from completing Your Trip due to: . . ."

 

Nothing there about incidentals like meals, phone calls, etc. Only the unused portion of your cruise cost plus additional transportation costs to get home (or the next port of call).

 

Here's from a Travel Guard plan:

 

"Trip Interruption Benefits: The Insurer will reimburse the Insured up to the Maximum Limit shown on the Schedule for Trips that are interrupted due to the Unforeseen events shown above:

(a) forfeited, insured Trip Cost, and

(b) additional transportation expenses incurred by the Insured, either

(i) to the Return Destination; or

(ii) from the place that the Insured left the Trip to the place that the Insured may rejoin the Trip; or

© additional transportation expenses incurred by the Insured to reach the original Trip Destination if the Insured is delayed, and leaves after the Departure Date.

However, the benefit payable under (b) and © above will not exceed the cost of economy airfare or the same class as the Insured’s original ticket less any refunds paid or payable by the most direct route."

 

Again, no incidentals.

 

Will they pay for things like meals, etc. They might. But there's nothing in the plan wording that says they have to. In the fine print there should be a section titled "Trip Interruption Benefits" or something similar which will tell you what they'll pay for. If it's not specifically listed, it's not covered.

 

Another question, if I have to leave on the 2nd day of a 7 day cruise and my ports were on day three can I claim all the port charges and 2/7 of the taxes or 2/7 of port chr and tax?

 

You should be able to claim 5/7ths (not 2/7th) of any pre-paid, non-refundable expenses that apply to the cruise as a whole like taxes/fees. You will NEVER, EVER get a breakdown from a cruise line saying what tax/fee applies to which ports of call so it just has to be pro-rated. But if the expense is 100% lost like a pre-paid, non-refundable independent shore excursion scheduled for one of the missed days -- that would not be pro-rated like the fees/taxes would be.You'd claim the full value of the lost excursion.

 

By the way, no cruise line uses the term "port charges" anymore. Since you never paid for a "port charge" they are entitled to keep the full amount if you cut the trip short whether you miss zero ports or five.

[JCJR]

What's covered under the trip interruption benefit varies from insurer to insurer. For example, this is from a TravelSafe plan:

 

"Trip Interruption: Benefits will be paid, up to the Maximum Benefit Amount, for the non-refundable, unused portion of the prepaid expenses for land or water Travel Arrangements and the Additional Transportation Cost paid to return home or rejoin the Trip, when You are prevented from completing Your Trip due to..

 

Thanks Cruico, but I'm still unclear about the fees and taxes. The quotes from the policies state " non-refundable, unused portion" if my Cruise is $4000 and fees/taxes are $400 but only insure the non refundable part $4000 then I'm out the $400 for fees and taxes unless I had originally insured the entire $4400. It does not say non refundable and unused portion. This is where I am stuck. Whether or not to insure the taxes and fees.

[cruiseco]

The quotes from the policies state " non-refundable, unused portion" . . . . It does not say non refundable and unused portion . . .

 

It either does or it doesn't.

 

I would never insure refundable taxes and fees. But if you would feel more comfortable doing so that's OK too.