Travel Insurance Question

[bjlaac]

Hey folks, trying to decide on travel  insurance amounts and a couple of questions regarding gov't fees and taxes

 

Assuming a cruise fare is $3,000 and govt taxes and fees are $360 for a total of $3,360.

 

1) What should be insured, both or will the gov't fees and taxes be refunded if we miss the cruise?

 

2) Same question of we start the cruise and need to cut it short.

 

You guys are always insightful, thanks for any advice.

[Ourusualbeach]

4 minutes ago, bjlaac said:

Hey folks, trying to decide on travel  insurance amounts and a couple of questions regarding gov't fees and taxes

 

Assuming a cruise fare is $3,000 and govt taxes and fees are $360 for a total of $3,360.

 

1) What should be insured, both or will the gov't fees and taxes be refunded if we miss the cruise?

 

2) Same question of we start the cruise and need to cut it short.

 

You guys are always insightful, thanks for any advice.

You never insure for taxes and fees on the cruise fare because those are refunded if you d not sail regardless of reason.

 

 

[bjlaac]

1 minute ago, Ourusualbeach said:

You never insure for taxes and fees on the cruise fare because those are refunded if you d not sail regardless of reason.

 

 

What about if you need to leave the cruise in the middle of it same thing, prorated fees/taxes refunded?

[Ourusualbeach]

12 minutes ago, bjlaac said:

What about if you need to leave the cruise in the middle of it same thing, prorated fees/taxes refunded?

That I am not sure of but it's a negligible amount at that point and a slim possibility that it would happen so I personally would not worry about insuring that even if they did not prorate the port fees and taxes if you had to leave mid cruise.

[Babr]

Port fees and taxes are refundable. Period. They are collected by the cruise line to pay port authorities and government agencies based on tonnage of the ship and number of passengers. It is a separate line-item for that specific purpose.

 

Cruise lines are not allowed to keep this money in the event of cancellation or missed ports because it is not part of the cruise fare. It is refunded automatically even if the ship misses a port while you are on a cruise.

 

Insurance will reimburse only the prepaid nonrefundable unused portion of expenses.

[bjlaac]

1 hour ago, Ourusualbeach said:

That I am not sure of but it's a negligible amount at that point and a slim possibility that it would happen so I personally would not worry about insuring that even if they did not prorate the port fees and taxes if you had to leave mid cruise.

Thank you probably good advice.  We are at the age that you never now what could happen or need to be airlifted or just can't board because of covid.  I hate to over insure and the annual plan I'm looking at has $2,000 level and $5,000 level of interuption.  Really need $3,000 but it seems that's not offered LOL

[bjlaac]

1 hour ago, Babr said:

Port fees and taxes are refundable. Period. They are collected by the cruise line to pay port authorities and government agencies based on tonnage of the ship and number of passengers. It is a separate line-item for that specific purpose.

 

Cruise lines are not allowed to keep this money in the event of cancellation or missed ports because it is not part of the cruise fare. It is refunded automatically even if the ship misses a port while you are on a cruise.

 

Insurance will reimburse only the prepaid nonrefundable unused portion of expenses.

That's certainly what I expect but you should know that last year we were on a cruise that skipped Puerto Rico in january when the Covid Rates sky rocketed and were not refunded port charges/taxes.   The official line...corporate has not told us anything

[Babr]

3 minutes ago, bjlaac said:

That's certainly what I expect but you should know that last year we were on a cruise that skipped Puerto Rico in january when the Covid Rates sky rocketed and were not refunded port charges/taxes.   The official line...corporate has not told us anything

I have heard of that happening when a ship misses a port.  Cruise lines often estimate port fees and taxes but reserve the right to charge more if there is a significant difference. It could be that the amount for missing a single port was retained to make up for a shortage in the original assessment.

 

If you can’t board because of COVID, that is a cancellation. You’ll be refunded taxes and fees. Your concern is for trip interruption. 

 

If you are considering the Allianz annual plan, the $2,000 option for cancellation gets you $2,000 in trip interruption as well. Perhaps you are looking at a different company.

[bjlaac]

Allianz is exactly what I'm looking at, been using them for decades.  Right now we have three cruises booked and the $2,000 covers two of them but the third is $700 in total over the the $2,000 cost (Fare Only) because of a 3rd traveler.  

 

Its about $230 dollars different to insure for $5,000 over the $2,000 amount but way too much coverage and a waste in my opinion.  

 

Probably going to go with lower amount and risk being uninsured for the third trip.  Hopefully its a none issue.  As many point out it would primarily apply if we missed the trip and to a lessor amount if it happened mid-cruise at which time the $2,000 limit would most likely cover the prorated loss.

[GeezerCouple]

2 hours ago, bjlaac said:

Allianz is exactly what I'm looking at, been using them for decades.  Right now we have three cruises booked and the $2,000 covers two of them but the third is $700 in total over the the $2,000 cost (Fare Only) because of a 3rd traveler.  

 

Its about $230 dollars different to insure for $5,000 over the $2,000 amount but way too much coverage and a waste in my opinion.  

 

Probably going to go with lower amount and risk being uninsured for the third trip.  Hopefully its a none issue.  As many point out it would primarily apply if we missed the trip and to a lessor amount if it happened mid-cruise at which time the $2,000 limit would most likely cover the prorated loss.

 

 

"...risk being uninsured for the third trip..."

 

You do have suitable health insurance that will cover you during the trip, correct?  

(Regular Medicare does not cover foreign travel, and some add-on coverages only have a $50k *lifetime* limit.)

If your regular health insurance covers you wherever you travel, then this is not a concern. 🙂

 

GC

[luv2travel90266]

At 73 my biggest concern is medical coverage in case of an emergency. $50,000 on my Medicare supplement seems very inadequate if we were unfortunately hospitalized.  Through a referral from this board I reached out to Steve Dasseos of the Trip Insurance Store 888-407-3854 who made a suggestion of a superior policy increasing the amount of medical coverage and at a lower cost. Very knowledgeable travel insurance broker!

 

 

[bjlaac]

8 hours ago, GeezerCouple said:

 

 

"...risk being uninsured for the third trip..."

 

You do have suitable health insurance that will cover you during the trip, correct?  

(Regular Medicare does not cover foreign travel, and some add-on coverages only have a $50k *lifetime* limit.)

If your regular health insurance covers you wherever you travel, then this is not a concern. 🙂

 

GC

We have medicare, secondary medical from my employer and trip insurance medical regardless of the trip interuption amount we choose....so yeah I think we have the medical $$$covered....but thanks for reminding everyone to have more than one plan