Serious question: Why does anyone buy trip insurance unless old or tight budget?

[CoachT]

Stories like this are why it is a good idea!

 

http://www.turnto23.com/news/local-news/couple-stuck-in-mexico-after-accident-leaves-husband-with-brain-injury-072214

[sonia.gilbert.5]

I always buy travel insurance and would not go without it. Unforeseen medical expenses while overseas can be thousands of dollars. There is also the personal liability cover. It always amazes me when people don't get insurance, as it is a very small investment for peace of mind. I hope I never have to use it. How often do you hear of someone's house burning down, they don't have insurance and they have lost everything. Then they want help and support from the community.

 

 

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[RDC1]

I never have heard of anyone being evacuated off a ship except by the CG of the country nearby...and NONE of them charge. If there is no CG to get you the ship goes to the nearest port with some sort of "hospital"...that becomes your problem to get evacuated from.

 

Not so. A number of countries in the Caribbean do not have CG capability. In those cases it gets done by commercial services.

 

Some people talked about their experience in the Caribbean and the cost, including the cost of the helicopter, here

 

http://boards.cruisecritic.com/showthread.php?t=1215108

[Inuvikcouple]

Last but certainly not least, some people start topics just to stir the pot, in fact some people start many many threads just to stir the pot. I think I will invest my insurance money in a poker game because we all know poker is a sure thing, no one ever wasted their money in a poker game.

[dcham13]

For 43 dollars for my 7 night cruise I don't see how I can afford not to purchase it with what it covers.. this is copied from my travel insurance policy through USAA..

 

 

Listing of Benefits Maximum Limit Travel Protection

Trip Cancellation* Trip Cost** Trip Interruption 150% of Trip Cost** ($500 Return Air Only if $0 displayed for Trip Cancellation on Your Confirmation of Benefits.)

Missed Connection/Itinerary Change (3 hours) $500 Trip Delay (6 hours) $750($200/day) Pet Care $300 ($50/day)

*Not applicable when $0 Trip Cost displayed on Your Confirmation of Benefits.

**Up to the lesser of the Trip Cost paid or the limit of Coverage on Your Confirmation of Benefits

Medical Protection

Emergency Accident and Sickness

Medical Expense $50,000 ($50 deductible) Emergency Evacuation/ Medically Necessary Repatriation/ Repatriation of Remains $500,000

Baggage Protection

Baggage/Personal Effects $1,000 Per Article Limit $250 Combined Articles Limit $500 Baggage Delay (12 hours) $300

Travel Accident Protection

Accidental Death & Dismemberment $10,000

 

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[rochelle_s]

Last but certainly not least, some people start topics just to stir the pot, in fact some people start many many threads just to stir the pot. I think I will invest my insurance money in a poker game because we all know poker is a sure thing, no one ever wasted their money in a poker game.

 

:)

 

pressed LIKE

[RDC1]

I never have heard of anyone being evacuated off a ship except by the CG of the country nearby...and NONE of them charge. If there is no CG to get you the ship goes to the nearest port with some sort of "hospital"...that becomes your problem to get evacuated from.

 

I would not assume that all CG do not charge fee for service. Attached is an interesting note concerning some medical evacuations from a Holland America ship

 

Helicopter Medical Evacuation Costs: On Day 17 of the cruise we were at sea and

headed for Rotterdam when a medical emergency with one of the passengers required a

military helicopter evacuation to a hospital in Newcastle, UK. That was the third medical evacuation by military helicopters that we had witnessed on cruise ships. We were

curious as to how the expense of such an evacuation was determined and how much of

the expense was billed to the patient. A couple days ago we wrote a note to the Maasdam

Guest Relations Manager asking for a description of how cost was determined and how

much it might be. Today we got a phone call from the Guest Relations Manager,

Christiana Beks, and in a lengthy conversation she explained everything we wanted to

know. Here is the basic story.

1. If a passenger is seriously injured or ill the patient is examined by the Maasdam

medical staff and a decision is made whether to request helicopter evacuation or

evacuation by a second-party boat or wait until the next port to remove the patient to a

hospital. Helicopter evacuations are much more hazardous than the other options and are

not selected unless there are life threatening circumstances.

2. If the decision is made for helicopter evacuation the Coast Guard of the nearest country

is contacted and helicopter evacuation is requested. The Coast Guard contacts their own

unit or a military unit with helicopter rescue capability and the request for evacuation is

made.

3. When the operation is approved the evacuation is carried out and the patient taken to

the nearest appropriate hospital.

4. The cost of helicopter and other services on the ship and on shore can be from $20,000

to $200,000 USD in the experience of Christiana. She knew of a medical evacuation

from the Falkland Islands that cost $200,000. The patient is responsible for all costs.

5. If the patient has adequate insurance the bills are paid by the insurance. If the patient

does not have adequate insurance Holland America accepts a secondary financial

responsibility in order to get an expeditious evacuation response. The government unit

providing the helicopter evacuation service then submits a bill to Holland America and

Holland America works with the former passenger to arrive at a payment schedule.

Christiana said that in some very sad cases the patient dies as a result of the illness or

accident and the surviving spouse is left with the problem of paying the huge medical

evacuation bill.

6. Christiana offered some additional information about Port Agents. Whenever the ship

is in a port the Daily Program gives the name and contact information for the Port Agent.

The Port Agent is on contract to Holland America (and usually other cruise lines) to

provide assistance to any passenger who might have to be left in that port as a result of

injury or illness. The Port Agent, in the absence of a Holland American Officer, would

assist the patient dealing with local agencies and act as the contact and facilitator for

communication between the patient, spouse, relatives, and the medical institution giving

care to the patient.

[Vettebuf]

For the last twenty years, we've gone on at least four vacations a year and, for the last 14 years, two or three of them take us out of the US. We've only purchased travel insurance one time. That was when we went on our first Med cruise in 2009 so I guess you could call us self-insurers. My husband became eligible for Tricare for Life when it started around 1999. I called a rep and was told that we would be covered by the Tricare Standard part of Tricare for Life if one of us had an accident or got sick. I didn't ask about co-pays or deductibles or medical evacuation.

 

Thank you, Pokerpro, for starting this thread and thanks to all who have joined in. It motivated me to find out what our burden would be. I found out that we would have to pay upfront and then we would be reimbursed 75% by TFL. There is a $150 deductible and a $3,000 cap. I then got a few travel insurance quotes thinking I would use it as a supplement to pay the uncovered TFL portion. Because of my husband's age and pre-existing conditions (all under control) and because of our fairly high tolerance of risk, I decided not to purchase a supplement. Sure, I won't be happy if something befalls either of us but, really, I probably wouldn't be any happier if I had the supplement.

 

So thanks again, everyone. I printed out all of the contact and payment information from the TFL handbook and plan to take it with me.

[Twiz]

Just curious about this thread , there is a lot drama on the NCL FB page because a family didnt get travelers insurance and had to cancel their cruise because one of their children became ill and required surgery.....seems like the timing between this thread and the FB drama are very closely related .....

[Vettebuf]

 

...The cost of helicopter and other services on the ship and on shore can be from $20,000

to $200,000 USD... in the experience of Christiana.

 

I just saw your post. I witnessed a helicopter transport when we were on the Triumph in the middle of the Caribbean in 2001. One of the people in the cabin next to our tablemates' cabin suffered a burst appendix. It took an interminable amount of time for the helicopter to get is just the right position where they could lower a person and a board to the ship. Then they had to strap the poor man to the board and hoist him up 40? 50? feet or more to the helicopter. Can you imagine his fear and pain? I don't remember if the person who came down out of the helicopter went back up or stayed on the ship.

[Shawnino]

Buy insurance company stocks, not insurance.

[pokerpro5]

What if trip insurance cost 50% more than it does right now? Would you still buy it?

 

What if it was double? Triple? Quadruple?

 

It would still give you "peace of mind", right?

 

Would you still buy it?

 

Trying to figure out where the breaking point is for you pro-trip-insurance folks.

 

From reading this thread, I think the insurance providers are leaving money on the table!

[ducklite]

Not trying to be condescending here, but trip insurance is one of the worst value things one can purchase. It's pretty much throwing money away unless you have a high chance of using it.

 

I can only think of three scenarios where it makes sense to purchase trip insurance:

 

1) You are living on a tight budget, and the money you lose by not being able to go would be so financially devastating that you couldn't travel again for a long time.

 

2) You are old or in poor health, and there is a fair chance that something will change for the worse between now and your trip.

 

3) You have a family member who is old or in poor health, and there is a fair chance you will have to attend their funeral or final details, and have to cancel the trip.

 

Otherwise, it's a complete waste of money, yet I see many upper-middle class families waste their money on this garbage.

 

Someone please explain to me why they bother.

 

You slip and fall on a wet deck and get a compound fracture of the femur. You are off loaded to a hospital in a third world country who decides that you need to be flown by medical airplane to another hospital in a larger city in an emergency evacuation. After surgery (which your personal insurance will only cover as out of network) you have to fly back to the US on a medical flight due to the critical nature of the injury. Do you have the $150K+ laying around to pay for all that?

[modfanmike]

I never get insurance and neither do my frequent travel mates. This year we cancelled a cruise due to financial reasons. My friend was diagnosed with cancer after the final payment date and her surgery was scheduled for the week that we were to cruise. She would have lost $4000.

[ducklite]

What if trip insurance cost 50% more than it does right now? Would you still buy it?

 

What if it was double? Triple? Quadruple?

 

It would still give you "peace of mind", right?

 

Would you still buy it?

 

Trying to figure out where the breaking point is for you pro-trip-insurance folks.

 

From reading this thread, I think the insurance providers are leaving money on the table!

 

I would. My last cruise was to French Polynesia. A medical evacuation from there would have run over $100K, not including the medical costs. Personally I think it's pretty stupid to not buy insurance to cover medical evacuation and costs. If you think your personal health insurance is covering it, think again. Alaska might be the only exception.

[ducklite]

Excuse me for quoting myself, but I suppose I should also concede that the travel insurance offered through the cruise line seems to be noticeably "richer" (costs more for lower / fewer benefits) than independently available coverage (e.g., TravelGuard or Allianz), but that is unsurprising. Doing a price comparison is simply a smart thing to do.

 

Agree. I book insurance through insuremytrip.com, and choose the policy and cover depending on where I am going. Next year we are renting a flat in London for a couple of weeks, so the type of cover we need for that trip is much different than what we needed in French Polynesia.

[Julia’s Journey’s]

Some visa's for certain countries will only be issued with proof of travel medical coverage and some tell you the minimum limits.

 

 

Sent from my iPhone using Tapatalk - Oy, excuse the auto correct ;)

[sjbdtz]

What if trip insurance cost 50% more than it does right now? Would you still buy it?

 

What if it was double? Triple? Quadruple?

 

It would still give you "peace of mind", right?

 

Would you still buy it?

 

Trying to figure out where the breaking point is for you pro-trip-insurance folks.

 

From reading this thread, I think the insurance providers are leaving money on the table!

 

 

 

 

Oh, oh, oh!!!! I know this one!

 

The insurance options available to me (either from NCL, or InsureMyTrip, etc.) are operating in a common market...that is, they compete with each other by either value, or price.

 

The one thing that a capitalistic marketplace does well....when there are sufficient competitors....is determine the maximum obtainable profit.

 

 

It would be highly reasonable therefore, since this is a well-populated competitive market, to surmise that the prices that exist today are in fact the optimum prices - equilibrium between the interests and constraints of the purchasers and the vendors.

 

 

Next question?

 

 

 

Stephen

 

 

.

[sparks1093]

What if trip insurance cost 50% more than it does right now? Would you still buy it?

 

What if it was double? Triple? Quadruple?

 

It would still give you "peace of mind", right?

 

Would you still buy it?

 

Trying to figure out where the breaking point is for you pro-trip-insurance folks.

 

From reading this thread, I think the insurance providers are leaving money on the table!

 

When I first started traveling I read in my research that one shouldn't pay more than 10% of the insured costs for trip insurance (unless one has special circumstances), so that's my personal breaking point. Fortunately with the number of options available that's been an easy goal.

[Warm Breezes]

When I first started traveling I read in my research that one shouldn't pay more than 10% of the insured costs for trip insurance (unless one has special circumstances), so that's my personal breaking point. Fortunately with the number of options available that's been an easy goal.

 

That makes sense. I think I normally range from 5-7%.

[sparks1093]

That makes sense. I think I normally range from 5-7%.

 

That has been our experience as well, but to buy a policy that covers things you don't need covered (which is what we would be doing if we chose a policy that was 10% of costs) is a waste of money and I could never understand that;).

[JP4GA]

Because of this.....

 

http://www.sheknows.com/parenting/articles/1044873/norwegian-cruise-line-wont-reschedule-trip-for-5-year-old-with-cancer

 

You never know when your life will be turned upside down by the unexpected.

[ja_martin]

Not trying to be condescending here, but trip insurance is one of the worst value things one can purchase. It's pretty much throwing money away unless you have a high chance of using it.

 

I can only think of three scenarios where it makes sense to purchase trip insurance:

 

1) You are living on a tight budget, and the money you lose by not being able to go would be so financially devastating that you couldn't travel again for a long time.

 

2) You are old or in poor health, and there is a fair chance that something will change for the worse between now and your trip.

 

3) You have a family member who is old or in poor health, and there is a fair chance you will have to attend their funeral or final details, and have to cancel the trip.

 

Otherwise, it's a complete waste of money, yet I see many upper-middle class families waste their money on this garbage.

 

Someone please explain to me why they bother.

 

Because my mom is 86 and because I've had cancer. Because I didn't know I had cancer until the day before I was leaving for a b2b2b and almost had to cancel. If I had to cancel, I would have wanted a refund and would have had to go through the insurance for it.

[ducklite]

When I first started traveling I read in my research that one shouldn't pay more than 10% of the insured costs for trip insurance (unless one has special circumstances), so that's my personal breaking point. Fortunately with the number of options available that's been an easy goal.

 

 

I've never had to pay more than about 5% (and that was for French Polynesia where evacuation costs are extremely prohibitive) and usually get the coverage I need for about 3%. It was only 2% for my upcoming London trip.

[The Mister]

What if trip insurance cost 50% more than it does right now? Would you still buy it?

 

What if it was double? Triple? Quadruple?

 

It would still give you "peace of mind", right?

 

Would you still buy it?

 

Trying to figure out where the breaking point is for you pro-trip-insurance folks.

 

From reading this thread, I think the insurance providers are leaving money on the table!

Most types of insurance are heavily regulated. Travel insurance is no exception. Furthermore, competition keeps premiums mostly competitive. In the event that a single provider raises its price significantly, that cost would be unattractive to consumers and the company would not be profitable. In the unlikely event that a *substantial* number of providers were to raise rates significantly and at around the same time, they would be subject to investigations by both the regulatory body (the NAIC) and various Attorneys General for suspicion of collusion (something that is illegal in any industry).

 

The regulations are in place (in addition to the market forces themselves) to protect both the consumer and the insurer. (1) The consumer - from being totally fleeced by the insurance company, and (2) the insurer, allowing it to have a healthy, but not excessive, profit margin.

 

<catching up> Ah, I see that sjbdtz has partially ninja'd me. :)

Oh, oh, oh!!!! I know this one!

 

The insurance options available to me (either from NCL, or InsureMyTrip, etc.) are operating in a common market...that is, they compete with each other by either value, or price.

 

The one thing that a capitalistic marketplace does well....when there are sufficient competitors....is determine the maximum obtainable profit.

 

It would be highly reasonable therefore, since this is a well-populated competitive market, to surmise that the prices that exist today are in fact the optimum prices - equilibrium between the interests and constraints of the purchasers and the vendors.

 

Next question?

Edited July 25, 2014 by The Mister