Your Cruise Your Way Cruise Blog

Now that there are a few airlines going out of business, and so many flights are being cancelled due to the new maintenance scares, this is a great time to make sure you’re up to speed on travel protection insurance, and what it does and does not cover. It always baffles me why anyone would want to leave on a vacation in today’s travel environment, and not protect their investment. Now is not the time to fool with your travel dollars. Here are some insurance tips for you.

Why do I need travel protection?
You need travel protection because it lets you travel with a strong sense of security. Travel protection insures your financial investment (up to the amount of your policy limits) should your trip be cancelled or interrupted for a covered reason, and it guards your health in case of medical emergencies. Here are a few of the benefits you’ll enjoy:

Reimbursement of the non-refunded portion of your travel investment if your trip is cancelled or interrupted for a covered reason
24-hour access to emergency medical referrals and assistance
Reimbursement for unexpected travel expenses
Protection in case of medical emergencies
Arrangement of and payment for Emergency medical transportation

What does travel protection cover?
The insurance component of travel protection assures that you’ll be reimbursed for non-refundable financial expenses associated with a cancelled or interrupted trip, lost baggage, or medical emergencies (Exclusions may apply, depending upon the policy you purchase).
Won’t my credit card, homeowner’s policy, or medical insurance give me the coverage I need when I’m traveling?
Not necessarily. You should check these policies before you travel to assess just how you would be covered in case you have an emergency.

Credit cards and homeowner’s policies. Many credit cards and homeowner’s policies don’t cover everything you need to protect, including some types of emergencies and trip cancellation/interruption. If they do provide coverage, it’s often limited, depending on the type of card you use or the coverage you have with your homeowner’s policy.
Health insurance. Most health insurance plans don’t provide direct payment to foreign hospitals. They may also have deductibles and won’t cover the cost of emergency medical transportation.

What is included under non-refundable costs?
Non-refundable costs include the total sum of all of your trip payments that would be forfeited due to cancellation prior to trip departure. Some examples include cruise, tour and airline ticket costs. Be sure to consult your travel coordinator to determine what costs are non-refundable for your particular trip as cancellation policies vary. Examples:

Cruise - If a cruise costs $3,000 and the cruise policy is 50% loss at 90 days out, 75% loss at 45 days out and 100% loss up to 7 days within departure, you would need to insure for the full $3,000 since you would be out the full amount in the event you cancelled within the week before departure.
Airline - If an airline ticket costs $700, and the ticket is 100% non-refundable at the time of purchase, you would need to insure for the full $700 in order to qualify for the pre-existing conditions waiver (other requirements still apply).

These are just a few notes. Check with your travel agent to obtain a full explanation of benefits, and find out what carrier they use. Don’t be left out in the cold if something happens before you have a chance to enjoy your vacation.