Insure Full Trip Price?

[SeaPete]

Since port charges are refundable (I had to cancel a cruise a week before cruising and I was refunded port charges only) can I insure only the trip portion and not the port charges?  I'm asking because to buy cruise insurance under $3000 was a lot cheaper than buying it over $3000. and the port charges pushes the total purchase price to just over 3K.  I just want to make sure I'm insured and not have an issue if I were to need it.  I find insurance and the small print so confusing.

Thanks

 

[NemoCrownie]

11 minutes ago, SeaPete said:

Since port charges are refundable (I had to cancel a cruise a week before cruising and I was refunded port charges only) can I insure only the trip portion and not the port charges?  I'm asking because to buy cruise insurance under $3000 was a lot cheaper than buying it over $3000. and the port charges pushes the total purchase price to just over 3K.  I just want to make sure I'm insured and not have an issue if I were to need it.  I find insurance and the small print so confusing.

Thanks

 

That is correct. I only insure what is nonrefundable - nonrefundable portion of the cruise fare and air usually.

[TeaBag]

I am interested in this also as we are looking at cancellation insurance only.  We have annual medical and don't need to insure that twice.  It is really hard to get cancellation only and it is very expensive.

[ShawninFL]

I'm not sure how it applies to travel insurance or the specific state your policy is written, but I remember from my short experience in insurance claims that there was a penalty for not insuring something for the true value.  Actuarial tables are created to show the possibility of claims occurring and reaching a specific dollar value and to ensure enough premium is being collected to pay out the said claims.  If something is under valued, it will pay out a higher percentage of the policy limits.  SO say you have a house that realistically cost $100,000.00 to replace in the event of a total lost, but you only insure it for $75,000.00.   Since very few insurance claims reach the level of total loss compared to all claims filed, an underinsured policy would on average pay out more money than is what is expected for a policy with those limits of cover.  Not enough premium would be being collected if everyone did this to pay out all the claims.  Thus, at least in Florida when I obtained my license quite a number of years ago, if you under value your insured value by say 25%, any claim payment would be subject to a 25% penalty. If you had a claim that should pay out $10,000.00 you would only get $7500.00.  I'm not sure if travel insurance works this way, but it would be something I would want to find out.  And I have no idea how refundable items play into all of this.  And in all honesty, only and insurance agent can answer these questions.

Edited November 13, 2019 by ShawninFL

[Fouremco]

13 minutes ago, ShawninFL said:

And in all honesty, only and insurance agent can answer these questions.

I couldn't agree more. This is a question best posed to the insurance company/companies from whom you are considering purchasing your travel coverage.

[SRF]

I don't insure my cruise fare at all.

 

I have paid for it, it was a budgeted expense.  And while I will be unhappy if I don't go, I will not be in dire financial straits.

 

OTOH medical or med evac could run well into the 6 figures and NOT be budgeted.

 

With my insurance (a travel insurer, but a portal through my homeowners/auto company), I can insure a trip for $0 trip cost for a charge of $32.

 

If I cover $500 of the trip cost, it only goes to $53.  More than that, and it jumps a bit.

 

My last cruise, but insuring $0 trip cost, I saved over $500 on insurance.  It does not take a lot of cruises to be ahead on the insurance.

[Jersey42]

16 hours ago, SeaPete said:

Since port charges are refundable (I had to cancel a cruise a week before cruising and I was refunded port charges only) can I insure only the trip portion and not the port charges?  I'm asking because to buy cruise insurance under $3000 was a lot cheaper than buying it over $3000. and the port charges pushes the total purchase price to just over 3K.  I just want to make sure I'm insured and not have an issue if I were to need it.  I find insurance and the small print so confusing.

Thanks

 

Others mentioned that you call an insurance broker to be sure you get the right advice for your situation.  I fully agree.  That said, here is some general information that will apply to most policies.

• You normally need to insure the full amount of your pre paid non-refundable costs if you are purchasing Cancel For Any Reason (CFAR) coverage or you are looking to waive the exclusion for pre-existing conditions.
• You do not need to include refundable costs (such as port charges)
• If CFAR or pre-existing conditions are not an issue, you can insure less than the full amount.  Your maximum cancellation and trip interruption benefits will be reduced accordingly, but other benefits such as medical will not change.
• Insurance premiums are normally priced in ranges.  A typical range is $500.  So as you have seen, the price for $3001 is more than the price for $3000.  But the price for $3500 should be the same as $3001.  It never hurts to go up to the top of the range.  The actual break points can vary by policy.

You may also want to take a look at a current live forum where one of the brokers is answering questions like yours:

https://boards.cruisecritic.com/forum/2441-qa-cruise-insurance-w-steve-dasseos-of-the-tripinsurancestorecom/

[bettyboop16]

22 hours ago, SeaPete said:

Since port charges are refundable (I had to cancel a cruise a week before cruising and I was refunded port charges only) can I insure only the trip portion and not the port charges?  I'm asking because to buy cruise insurance under $3000 was a lot cheaper than buying it over $3000. and the port charges pushes the total purchase price to just over 3K.  I just want to make sure I'm insured and not have an issue if I were to need it.  I find insurance and the small print so confusing.

Thanks

 

What about taxes? Are taxes refundable?

[Jersey42]

18 hours ago, bettyboop16 said:

What about taxes? Are taxes refundable?

Port charges, taxes and fees are typically lumped together on most cruise lines.  All should be refundable if you cancel.  If you want to be sure for a particular line, ask your travel agent or the cruise line for their policy. 

[Suzanne123]

I’ve been using TravelSafe Classic for the past few years.  They do not make you insure every last penny in order to keep the pre-existing condition waiver.  I only insure enough to get myself on a plane home in case of emergency.

They paid my last claim in full within two weeks when I had to cancel for a medical reason.
https://tripinsurancestore.com/how-travel-insurance-pre-existing-medical-conditions-coverage-works/?gclid=CjwKCAiA_MPuBRB5EiwAHTTvMQB1IDqB5sPAOdG0JAXi_Wsgfegkp5gDtwkDe_P8_tHPmtB8FE7uzhoCkxIQAvD_BwE

[GeezerCouple]

On 11/12/2019 at 8:36 PM, ShawninFL said:

I'm not sure how it applies to travel insurance or the specific state your policy is written, but I remember from my short experience in insurance claims that there was a penalty for not insuring something for the true value.  Actuarial tables are created to show the possibility of claims occurring and reaching a specific dollar value and to ensure enough premium is being collected to pay out the said claims.  If something is under valued, it will pay out a higher percentage of the policy limits.  SO say you have a house that realistically cost $100,000.00 to replace in the event of a total lost, but you only insure it for $75,000.00.   Since very few insurance claims reach the level of total loss compared to all claims filed, an underinsured policy would on average pay out more money than is what is expected for a policy with those limits of cover.  Not enough premium would be being collected if everyone did this to pay out all the claims.  Thus, at least in Florida when I obtained my license quite a number of years ago, if you under value your insured value by say 25%, any claim payment would be subject to a 25% penalty. If you had a claim that should pay out $10,000.00 you would only get $7500.00.  I'm not sure if travel insurance works this way, but it would be something I would want to find out.  And I have no idea how refundable items play into all of this.  And in all honesty, only and insurance agent can answer these questions.

 

Travel insurance is quite different.

 

Indeed, the traveler will have an obligation to mitigate the expenses of the insurer.  This could include cancelling in a timely fashion, rather than simply neglecting to bother, while the cancellation penalty doubles, etc.  (If one is unable to avoid this, that's different.)

 

Also, if something is refundable, why should the insurer pay for it?  They typically won't.  Get the refund!

 

The closest I can think of the situation with, say, home owner insurance as you describe, is that most policies that include pre-existing conditions and/or CFAR (Cancel For Any Reason) require that one insure ALL of the NON-REFUNDABLE PRE-PAID expenses.  (Someone above mentioned a policy where this is not the case, so obviously not all do this.  Ours do.)

Otherwise one can usually insure a lesser amount if desired.

 

GC

[iamtrustworthy]

On 11/12/2019 at 2:44 PM, SeaPete said:

Since port charges are refundable (I had to cancel a cruise a week before cruising and I was refunded port charges only) can I insure only the trip portion and not the port charges?  I'm asking because to buy cruise insurance under $3000 was a lot cheaper than buying it over $3000. and the port charges pushes the total purchase price to just over 3K.  I just want to make sure I'm insured and not have an issue if I were to need it.  I find insurance and the small print so confusing.

Thanks

 

Hi SeaPete,

 

You will have to check with the insurance company you are considering to see what they say. Also, not all cruise lines refund these charges, so check on that, too.

[iamtrustworthy]

On 11/12/2019 at 5:31 PM, TeaBag said:

I am interested in this also as we are looking at cancellation insurance only.  We have annual medical and don't need to insure that twice.  It is really hard to get cancellation only and it is very expensive.

As far as I know, there are no trip cancellation only plans.

[BananaAnna]

Something to consider...

If you cancel cruise before the cruise your taxes/fees are refunded.

But if you get injured during the cruise and insurance kicks in, you would not be getting the taxes/fees back so would be looking at the higher base cost.