This is why you buy travel insurance

[Candleonwater]

Work related reasons are not always covered under travel insurance. Many times, you need to purchase a cancel for any reason policy to get the work coverage.

 

If the PP has CFAR coverage, and she's 1 week out from her trip, and gets the letter from her daughter's employer denying her the vacation time, then the insurer gets involved.

 

Now, when she cancels the daughter with the cruise line, the daughter's fare becomes a "cancellation penalty". That means that the OP is now sailing as a single. And the cruise line can now add a single supplement to her fare, because the daughter's fare is no longer in play.

 

The insurance company then should be next in line, and they should refund the daughter's lost fare, plus they should cover any single supplement that the cruise line charges to the PP for sailing on her own.

 

At least that's what I've seen happen. People wrongly think that the second person's fare is paid so why would they charge the supplement; because the fare changed to a penalty amount when the cancellation occurred. Now, the cabin only has 1 fare charged to it.

 

Hope that makes sense.

 

That's exactly what I'm thinking is happening. So I would get nothing from the insurance company, regardless of type of coverage. Work related was included in the original insurance, but we upgraded to include cancel for any reason.

[starrcards]

We have a $9K cruise (cruise, air fare, hotel) on Freedom in December for 5 of us from San Juan. There is no way I would ever self insure for that amount of money. What if Puerto Rico had back to back devastating hurricane seasons or if it snowed the day before we leave Long Island? $300 for travel insurance is a no brainer.

[cruisegoal100]

Sorry about your son...hope he has a quick recovery.

That's 1 reason you buy trip insurance but perhaps not the most important reason. If you lose 5k or whatever because you have to cancel a cruise due to illness or injury it's money you've already paid. However, the most important reason is if you developed a serious illness or had a serious injury while on the cruise and had to be "landed" in a foreign port without the level of medical care you would receive at home and emergency evacuation becomes necessary...that's where the costs can become really significant.

Also, if you have a pre-existing condition make sure that the travel insurance you purchase covers pre-existing conditions.

[Langley Cruisers]

Yes indeed. Our last cruise was cancelled mere hours before embarkation when I was diagnosed in a Fort Lauderdale hospital with a recurrence of cancer. Shocked. Sad. Angry. Resolved. Blessed, and still thankful. 100% reimbursement as well.

 

You simply never know.

 

Hope your lil guy will be OK. He looks so sad. :(

[CruisingNole]

Insurance companies, obviously, are in business to pay out as little as possible. If you're not a frequent traveler, or you're vulnerable to unpredictable scenarios (people with kids, the elderly, etc), it's not a bad idea to purchase. But if you ARE a frequent traveler, a few hundred in insurance for each trip can quickly add up to more than the cost of an entire cruise. So when (and if) you actually do have a claim, you're essentially just (hopefully) getting back some of the money you've invested over the years.

 

Everyone's situation is different, but I'd just take that insurance money for every trip and put it in a savings account.

[njmomof2]

That's exactly what I'm thinking is happening. So I would get nothing from the insurance company, regardless of type of coverage. Work related was included in the original insurance, but we upgraded to include cancel for any reason.

 

If you have CFAR, then it shouldn't matter. But I'd review the policy documents anyway to determine if the policy states that "you or a traveling companion are denied vacation from an employer" is considered a "covered reason". The difference between the two isn't that it's not covered, it's the amount you get back.

 

Covered reasons give you back 100%. Non-covered reasons (hence the "cancel for any reason" coverage) only gives you back 75% or 80%, or whatever your policy allows.

 

As an example, the Allianz policy I sell used to cover work related issues under what I call the "standard" plan. They changed their coverage, and if you wanted work related, you needed to upgrade to CFAR coverage, which costs more. That meant that under the CFAR coverage, a work cancellation was a "covered reason" and you'd get 100% back if you needed to use it. But, if you woke up and decided day of that you didn't want to go, or your dog or cat was ill and you couldn't leave them, you could cancel under the "any reason" option and get back a percentage of your costs.

 

You need to review the policy coverage details, and then you need to call the insurer back (or your TA who should understand this stuff and run interference with the insurer for you) and get to the bottom of what you need to do.

[puppycanducruise]

So sorry for your little man's injury.

Hope he heals fast and you can start planning your next cruise.

[sparks1093]

If you lose 5k or whatever because you have to cancel a cruise due to illness or injury it's money you've already paid.

 

So if you had a $5000 piece of art you wouldn't insure it? Most people would, even though they've already paid the money for it. Same with a vacation. I've paid the money for it, but if something happens to keep me from going I'd like to get that money back.

[sparks1093]

Insurance companies, obviously, are in business to pay out as little as possible. If you're not a frequent traveler, or you're vulnerable to unpredictable scenarios (people with kids, the elderly, etc), it's not a bad idea to purchase. But if you ARE a frequent traveler, a few hundred in insurance for each trip can quickly add up to more than the cost of an entire cruise. So when (and if) you actually do have a claim, you're essentially just (hopefully) getting back some of the money you've invested over the years.

 

Everyone's situation is different, but I'd just take that insurance money for every trip and put it in a savings account.

 

There are annual policies for frequent travelers that may make more sense. Your reasoning may be sound up to a point but falls apart if one considers the cost of a medevac which starts at about $25,000. You'd have to save a lot of insurance money to offset that. (They do have medevac only policies but having a comprehensive policy isn't that much more expensive.)

[Candleonwater]

If you have CFAR, then it shouldn't matter. But I'd review the policy documents anyway to determine if the policy states that "you or a traveling companion are denied vacation from an employer" is considered a "covered reason". The difference between the two isn't that it's not covered, it's the amount you get back.

 

Covered reasons give you back 100%. Non-covered reasons (hence the "cancel for any reason" coverage) only gives you back 75% or 80%, or whatever your policy allows.

 

Yeah, already did all of that. CFAR only gives back 75%, while a work related reason gives back 100%, but NEITHER gives back if the cruise line charges me the single supplement, which I understand they'll do as soon as I cancel my daughter?

[Zlasmcruising]

I'm not sure how all cruiselines work with insurance but I had this happen with NCL. I got there coverage for cancel for any reason at the 75% amount. I did cancel for a noncovered reason. I filed and it took 2 or 3 months for NCL to let me rebook. When I went to rebook I had picked either a guarantee or a sailaway. Anyway, they said I had to book a cabin that had a number on it or I couldn't use my reimbursement. Just a heads up for anyone who needs to know. I'm sure it is in the small print somewhere, but I didn't look.

 

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[farmcruiser]

There are so many naysayers in the world. It is ridiculous how people criticize the insurance industry saying they don't want to pay claims. I am in the industry and I know that we look for reasons to pay claims not the other way around. And unfortunately, we see tragedy day in and day out. I don' buy travel insurance to cover the cost of the trip. If I lose the money due to an unforeseen situation, I can handle it. I buy it for the medical coverage, and it is literally a few dollars more to cover cancellations for other reasons. Worth it in my opinion. Just because something has never happened to you in the past does not mean it won't happen to you in the future. If you cannot afford travel insurance then you cannot afford the cruise. 20 cruises and I've never had to use it. And I'm very happy for that!

[sparks1093]

There are so many naysayers in the world. It is ridiculous how people criticize the insurance industry saying they don't want to pay claims. I am in the industry and I know that we look for reasons to pay claims not the other way around. And unfortunately, we see tragedy day in and day out. I don' buy travel insurance to cover the cost of the trip. If I lose the money due to an unforeseen situation, I can handle it. I buy it for the medical coverage, and it is literally a few dollars more to cover cancellations for other reasons. Worth it in my opinion. Just because something has never happened to you in the past does not mean it won't happen to you in the future. If you cannot afford travel insurance then you cannot afford the cruise. 20 cruises and I've never had to use it. And I'm very happy for that!

 

Choosing to forego the coverage means they are making a different decision than you or I would make, it doesn't mean that they can't afford it.:)

[Toofarfromthesea]

There are annual policies for frequent travelers that may make more sense. Your reasoning may be sound up to a point but falls apart if one considers the cost of a medevac which starts at about $25,000. You'd have to save a lot of insurance money to offset that. (They do have medevac only policies but having a comprehensive policy isn't that much more expensive.)

 

You are conflating 2 different types of insurance.

 

Health/medevac involves open ended costs that can run into the tens of thousands or more. One would need to be pretty wealthy to think about self-insuring them.

 

Trip cancellation insurance, OTOH, involves a fixed, known amount. Therefore they can make a reasoned analysis of their personal financial situation and rationally come to the conclusion that self-insuring makes sense for them. It might not be the decision you would make, but their situation and your situation aren't the same.

[Guest maddycat]

Oh my! I am so sorry! I hope your lil' guy recovers relatively quickly. My son fractured both bones in the arm last summer. No fun! Glad you still get to take your trip at a later date.

 

This was a timely post as I was just researching trip insurance for an upcoming cruise. I could kick myself though now that I am outside of 15 day window of deposit. Anyhow, may I ask what company and plan you purchased?

 

Thanks!

 

There are some travel insurance policies that cover pre-existing conditions if you purchase the policy with in 21 days of paying your deposit. Travel Insured is one of those. We've been buying their travel insurance through the trip insurance store for several years. Call and discuss your needs with one of their reps.

 

 

https://tripinsurancestore.com/

[Toofarfromthesea]

Yeah, already did all of that. CFAR only gives back 75%, while a work related reason gives back 100%, but NEITHER gives back if the cruise line charges me the single supplement, which I understand they'll do as soon as I cancel my daughter?

 

I wonder if you could

 

1) not cancel your daughter

 

2) have her be a no show and thereby avoid the single supplement for her cabin mate, and

 

3) file the insurance claim right after the ship sails for the work-related reason.

 

I have no idea if that would work, just spitballing.

[CruisingNole]

I am in the industry and I know that we look for reasons to pay claims not the other way around.

 

I got a good laugh out of this. Insurance companies look for reasons to pay claims? I wish I could get United Healthcare to look for reasons to pay my claims. Unfortunately, it's always the other way around.

 

I'm not in the industry, but I do understand the business model. You need to have more money coming in then going out. Otherwise, you don't turn a profit. You don't turn a profit by eagerly handing out money.

[Candleonwater]

I wonder if you could

 

1) not cancel your daughter

 

2) have her be a no show and thereby avoid the single supplement for her cabin mate, and

 

3) file the insurance claim right after the ship sails for the work-related reason.

 

I have no idea if that would work, just spitballing.

 

I wondered the same thing, but was told I have to cancel her 3 days before departure...? Curious what would have happened if I didn't, and she "missed her flight" and didn't make it to the ship? Like I told her, it's NOT a deal breaker if we get nothing back. I booked her on the off chance she could join me, by adding her it only cost me an additional $200 for the sailing. I figure, if that breaks me, I probably shouldn't be cruising. But part of me says its the principle... cancel for any reason should mean just that.

[Candleonwater]

I'm not in the industry, but I do understand the business model. You need to have more money coming in then going out. Otherwise, you don't turn a profit. You don't turn a profit by eagerly handing out money.

 

I thought the same thing. Insurance companies aren't charitable organizations, it's not in their best interests to "find ways to pay claims".

[pspercy]

I have had two claims on Allianz trip insurance. Both settled quickly and fairly, in fact the last one was settled for more than I claimed:)

 

Will be using them again, I buy via insuremytrip.com

[sparks1093]

You are conflating 2 different types of insurance.

 

Health/medevac involves open ended costs that can run into the tens of thousands or more. One would need to be pretty wealthy to think about self-insuring them.

 

Trip cancellation insurance, OTOH, involves a fixed, known amount. Therefore they can make a reasoned analysis of their personal financial situation and rationally come to the conclusion that self-insuring makes sense for them. It might not be the decision you would make, but their situation and your situation aren't the same.

 

As I said, you can certainly buy a medevac only policy but the comprehensive ones aren't that much more. I fully recognize that others will make a different decision from me.

 

ETA: I just checked insuremytrip.com and medevac only coverage started at $249 for our trip next year. Comprehensive plans started at $80.

Edited August 3, 2018 by sparks1093

[bobmacliberty]

Hucifer - Sorry to hear about your son. I greatly enjoyed your last review and forgot that you were going to be on the same sailing as us on Sunday. Would have been nice to meet you. We'll raise a glass in your honor at some point. Can you ask your Florida friend to take your place? ;p :evilsmile:

[dani negreanu]

So sorry for the broken arm. Hopefully, he'll make a speedy recovery, and in no time at all, you'll be again on the "road".

And, yes, we always buy trip insurance :D

[lbjen]

I thought that the single supplement only comes into play if RC actually refunds the canceled passenger’s fare, which they obviously wouldn’t at this late stage (the refund comes from the insurance company, not RC). It’s to stop people from trying to game the single supplement system, but if RC is keeping both fares, then I don’t see how they can go ahead and charge an additional fare and call it a single supplement. That’s like getting three fares for one person.

[Slugsta]

Hucifer, I am so sorry that your trip had to be cancelled at such short notice! I bet your little solja is terribly disappointed (and sore!) :( I do hope he heals well and you will soon be cruisin' again - just think, you will still have it to anticipate when your original date has come and gone :)