Cruise Insurance – Explained
Do I really need cruise insurance?
The short answer is yes! Insurance, in general, is a safeguard we purchase to protect us financially should the unexpected happen. Cruise insurance covers the unforeseen while on your cruise vacation.
Unless you have a boat-load (pun intended;-) of money stashed away that you do not need, then yes, you need cruise or travel insurance.
How about a little personal story here? It was 9:45 pm and my husband and I were packing last-minute items in our luggage. We had already paid for airfare, hotel, ground transportation and even tickets to coveted shows. Then a call came in from my 97-year-old father’s caregiver. He had fallen and the paramedics were taking him to the hospital. He had a broken hip.
Needless to say, we canceled our trip. Our non-refundable deposits were lost. If only we had considered trip insurance. Never again will we travel without it.
Medical costs while on a cruise can be very expensive. Imagine getting so sick that you need to be hospitalized. Can you wait to get to the next port or do you need to be air-lifted immediately? How are you going to get home if you are hospitalized in a foreign country? Does your home medical insurance cover doctor and hospital costs in a foreign country? Do you have enough savings to cover these costs? Do you have those savings earmarked for other things such as a new car, home remodel or retirement?
What does insurance for a cruise cover?
Travel insurance has many components. Policies have a wide range of coverage. You must be very careful when comparing policies to be sure you get all the coverage you may need.
It can cover the cost of cancellation due to sickness of a traveler or a family member, lost baggage, trip delays, missed connections, emergency medical and related transportation, and more.
What should I look for in a policy?
- In my opinion, the policy must have generous emergency, medical and transportation benefits. The cost can be high if you or a traveling companion get sick and require medical assistance followed by transportation to a hospital and back home.
- No one wants to lose luggage and then deal with replacing clothes and other essentials. Typically, policies will cover $1,000 – $1,500 of documented replacement costs for lost baggage and contents.
- My fear is having a medical emergency resulting in evacuation from the ship. There are many cases where a traveler incurs expenses in excess of $20,000 for medical and transportation expenses. When cruising in and around North America and the Caribbean, I personally prefer the coverage to be at least $20,000 for medical expenses and no less than $50,000 for emergency evacuation ($100,000 for emergency evacuation from Europe or other faraway destinations).
- Remember that private health insurance policies and Medicare do not typically cover treatment outside of the United States. Check your travel insurance policy to see if it will pay to transport you home, or only to the nearest qualified hospital.
- Trip cancellation coverage is also important since non-refundable cruise payments are due well in advance of your sail date. If you find yourself in a situation as I did with an elderly parent, or your travel companion, gets sick and cannot travel, cancellation coverage will be crucial. There are policies available that will cover 50-100% of the cost should you cancel. The same coverage offered by cruise lines will offer future credits, so be sure to carefully review your policy.
- Look to see if the insurance policy is second party coverage. This means they will cover expenses only after your primary insurance policy has been contacted and reviewed your claim. Can you afford to cover expenses and wait for reimbursement?
- For those who don’t prefer to arrive at their embarkation port a day ahead of time, trip delay and missed trip coverage should be considered. The ship will not wait for you but the insurance will get you to the next port. If the taxi breaks down on the way to the airport and you miss your flight, find a policy that will cover costs incurred to catch up with the ship.
- Preexisting conditions – some policies exempt these. Others include them but only if the policy is purchased within a certain timeframe. This time period could be at the time of booking or before the final payment. Read the policy carefully!
How much does insurance cost?
The cost of cruise insurance depends on a number of things. Your age, the cost of your cruise, where you are cruising, and transportation costs all factor in. Does it include reimbursement for cancellation for any reason? Does it cover missed connections? What if you need emergency dental work? Is that covered?
You know the saying “You get what you pay for”? That certainly applies to cruise insurance.
I have found that the cost of travel insurance can range from 5 – 8% of the cost of your cruise. Cost varies depending on the coverage and whether you purchase from your cruise line or a commercial insurance company. In either case, why not have the peace of mind that should events beyond your control occur, you will not forfeit the cost of your trip?
And don’t forget to review the coverage carefully before you purchase. As they say, “the devil is in the details.”
Where do I get cruise insurance?
All the cruise lines offer cruise insurance. Most offer different levels of coverage.
There are many insurance companies unaffiliated with cruise lines that offer cruise insurance. These are third-party insurers. AIG, Allianz, and Nationwide are just three companies that offer coverage.
One web site I found where you can get multiple quotes is TravelInsurance.com. Please note – I have no affiliation with this site and have never purchased insurance using it. So far I have always purchased insurance through the cruise line.
In conclusion, you need insurance and it certainly pays to shop around!
- If you enjoyed reading this article you should check out my post on How to Stay Healthy on a Cruise.
- And if you are thinking ahead to embarkation day you will like Embarkation Dy Carry-On Essential.