Do You Need Travel Insurance?

Disclaimer:  Let’s get the legalese out of the way right here.  What I am giving you is just my opinion, not expert advice. 

So, still reading?  All right, let’s get started.  What is travel insurance?  It is insurance to cover nonrefundable costs that are associated with an unforeseen event.  Cruises are expensive.  Health care in foreign countries might not be covered by your own health insurance.  If you need to be helicoptered off of a cruise ship, it will be EXTREMELY expensive.  So, do I think you should buy travel insurance?  If you aren’t filthy rich, I recommend purchasing travel insurance.

Should I go through the cruise line?  Sure, if you are ok with paying a higher cost.  They often charge 4% to 8% or more for what you can buy for less on the open market.  Check with your travel agent.  Get prices from www.insuremytrip.com.  It pays to be an informed consumer.

Should I purchase a policy for just one trip?  Or an annual policy?  There are pros and cons to both.  An annual policy covers you for an entire year, but the total amount of insurance is for the entire year.  If you make a claim, the amount remaining for the rest of the year will be reduced by the cost of the claim.  If you travel a lot, the annual policy may make sense for you.  If not, you may want to purchase trip by trip.

Whatever you do, read the policy before you buy. Know what you are purchasing. Look to see what is covered and most importantly, what is excluded. Don’t just rely on a general description. For example, the description may say it covers Covid, but it may just cover it for a minimal amount (I’ve seen limits in the hundreds of dollars. Good luck flying home for that amount!).

Do you need Cancel for Any Reason Coverage?  Well, it is more expensive and most policies will only cover a portion of your nonrefundable expenses (mainly because they want you to have skin in the game and if they covered 100%, you would have little incentive not to make a claim).  If you think it is likely that you might have to cancel for an uncovered reason, you might want to purchase this coverage.  I almost never do, mainly because if I am going to miss a cruise it will be for a covered reason.

When should you buy?  It depends on your situation.  There are advantages to buying early, within 15 days of your initial booking.  That is because many insurers will waive preexisting condition exclusions if you buy early.  On the other hand, if you change your mind and move your deposit to a different cruise, you are pretty much out of luck.  You won’t get a refund and it is highly unlikely that the insurance is portable.

What do I do?  Generally speaking, I buy insurance that covers medical and evacuation about the same time I make my final cruise payment.  I purchase the cruise with a credit card that covers baggage delay/loss and flight delay/cancellation.  So, I buy solely what I need.  Will I end up going into pocket if something bad happens?  Yes, but not too deep.  We have taken more than 20 cruises and our next claim will be our first claim.  I have saved a lot of money over the years with this strategy, so if I have to go into pocket a little, I am ahead of the game.  This might not be a good strategy for everyone.  With that in mind, I highly recommend the next paragraph. 

There is an entire discussion board on Cruise Critic that deals solely with travel insurance.  It is a great place to do additional research.