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Travel Insurance Advice Not Always Sound With Cruise Vacations
Travel insurance for a cruise vacation is one of those things that experts say we need but is viewed by many travelers as an extra, optional expense. Many try to get the minimum coverage for as cheap as possible. After all, odds are staggeringly against needing to use it. But like most insurance, it seems expensive until we need it. Then? Instant bargain. I found that out first-hand not long ago, spending a nice pile of cash on a simple thumb-crushing injury on board Princess Cruises Grand Princess.
Travel experts seem to agree about two things when it comes to travel insurance: Get it and don't buy it through the cruise line.
"Get it" is universally sound advice. Travel agents typically receive calls from those who did not buy travel insurance but need to cancel their cruise just before sailing for a variety of reasons. They are usually always out of luck and lose most of what they paid.
"Don't buy it from the cruise line" is advice of a more self-serving nature. Third-party insurance programs are big money makers for travel agencies, commonly earning a commission of 20% or more of the cost of that third-party program.
But that advice of not buying travel insurance through the cruise line has another, not mentioned, element that sometimes surprises travelers.
When it comes to the medical coverage part, travel insurance commonly provides secondary benefits, tapped only after a traveler's primary health insurance has denied a claim or been exhausted. That means for the travel insurance company to pay, a claim must be made with the primary insurance carrier first. Then, whatever they don't pay, should be covered by the third-party insurance. It is a bit of a hassle but in the end the traveler gets reimbursed.
Reimbursement-
It's that "reimbursed" part that catches travelers off guard. They assume that since they have travel insurance, if something goes wrong, they are covered ... as in the travel insurance pays the service provider, if they even think that far ahead. Most don't. In reality, that's often not the case.
Covered Reasons-
First, the claim must be for a covered reason, usually some medical event that happens while on vacation. In my case, we were in rough seas on the Grand Princess with the ship listing a bit from side to side. My thumb just happened to be in the wrong place at the wrong time, caught between a metal doorframe and a metal door. Of the door, doorframe and my thumb, guess which one was out of place when the door shut? It happens.
How It Works-
Off I went to the ship's medical center, a facility fully equipped to handle my injury, much like the emergency room at a major hospital. I was treated immediately, given discharge instructions and pain medication, then sent on my way.
I travel quite a bit and have an annual travel insurance plan from a major insurer just in case something like this would happen. In the end, I suffered no financial loss and was reimbursed for all expenses associated with the injury.
But I had to pay for the medical center services before leaving the ship, then get reimbursed. Had I bought the cruise line insurance, I would have paid nothing. Ever.
What If I Can't Pay?
So what if I was on a cruise, had maxed out my credit cards and had no other sources to tap for up-front payment at the medical center? Do I walk the plank? Wash dishes?
Probably not, but its a good idea to call the travel insurance company, either the company that administers the cruise line insurance or the third-party insurance company and ask one very important question:
"If I buy your insurance, have an injury on my cruise and get treated on the ship, do I have to pay for those services before I get off the ship?"
Knowing the answer can eliminate a rather unpleasant surprise later.
[Photo Credit: Flickr user Manachar Bandicoot]
Reader Comments (Page 1 of 1)
Dave Kearns Nov 24th 2012 6:08PM
Which cruise lines have medical coverage in their "insurance"? Most I'm familiar with only cover the cost of the cruise itself. That's one reason we do two things: always book 3rd party travel insurance for cruises (not thru the cruise line, nor thru the travel agent) and maintain a year-round medical emergency policy which covers evacuation and repatriation - something few people think about, but all cruisers should - do you really want to be left to the mercies of the only hospital in some run-down island country?
Richard Nov 25th 2012 4:00PM
I agree with the point that if you are going to buy insurance before a cruise, buy from a 3rd party and not the agent or the cruise lines. It may be less convenient to be reimbursed but you get better coverage.
I take a lot of cruises and I also believe you don't need insurance for every cruise, it depends on where you are going and how far off the beaten track you'll be. It's like any kind of insurance in your life, you have to decide if you need it, what coverage and shop for the best deal. Otherwise you will get waste money (at best) or get burned (at worst).
I've used this site a few time: http://www.squaremouth.com/.
Florence Nov 25th 2012 10:55AM
Actually Travel Agents sell this type of insurance because they know the value to the customer. There is no added cost to you for buying the policy through them. Get a quote from an agent and then price it yourself. It's the same. They need to make a living too.
Also I don't use a travel insurance policy for my medical evacuation insurance. The policy I use actually has their own doctors who determine when a patient is safe enough to be airlifted out of a foreign place, or even when they are 150 miles or more from home. Travel Insurance policies do not have that caveat. Many times the doctor in the location you are at can decide to keep you because they think they can care for you. Not how I want my medical decisions made. My doctors are in the US and they decide.
Recently had to see the ships doctor while on a two week cruise in the Caribbean. It cost me $200 out of pocket. The cruise lines just assume that you have medical insurance and that you will be reimbursed when you get home.
It is ridiculous what medical care costs. But what's worse is being away from home and getting the bill for medical evacuation (costs are upwards of $100,000). Many tour operators are now requiring clients to travel with either travel insurance or medical evacuation but also with a repatriation of remains policy in place. It can be a costly mistake to travel outside of the US without coverage. This is one of those times when paying for insurance, when hopefully you won't have to use it, really pays off.