Protecting Your Cruise Vacation

70% of Cruise Passengers Buy Travel Insurance for Smooth Sailing

January 4, 2006 - More than 70 percent of all cruise passengers buy travel insurance, according to a 2006 Consumer Survey conducted by the US Travel Insurance Association (UStiA). The survey showed that people are more likely to buy insurance when there are more factors out of their control, when there are considerable pre-paid, non-refundable expenses, and when they want protection from unforeseen events. These are all considerations for the typical cruise vacation.

“When it comes to cruise vacations, the old proverb ‘ounce of prevention is worth a pound of cure’ is a wise choice,” said Jon Ansell, UStiA Immediate Past President. “The most common claim situation is that a sudden illness or injury in the family forces people to cancel a cruise. Other common issues can affect a cruise vacation too, such as lost, stolen or delayed baggage; missing connecting flights en route to the cruise; becoming ill or injured while at sea or while on a shore excursion. Hurricanes and delays reaching the port of embarkation due to bad weather are also circumstances typically covered by travel insurance.”

Special Cruise Insurance Policies

With the growing popularity of cruising, new travel insurance policies address the special needs of cruise passengers that include standard travel insurance protections, such as trip cancellation/interruption, medical and evacuation coverage, as well as enhancements such as “missed cruise connection.” If a passenger misses a flight to the point of embarkation for a covered reason, the insurance covers the flight costs to the ship’s next port of call, and reimburses for the portion of the cruise that was missed. Some policies even go further by providing assistance for anything that happens en route to ports, including roadside assistance.

Medical and other Coverage

Cruise insurance may also cover the cost of treatment in the cruise ship medical department, which can be quite high. In the case of a serious illness or accident in which the cruise ship’s hospital may not have sufficient resources, both standard travel insurance and cruise insurance policies offer 24-hour hotline assistance to help arrange for medical care. Many travel insurance policies also help make arrangements and cover the costs of medical evacuation to the nearest appropriate medical facility, which can run into tens of thousands of dollars. They will also help notify family members and others in case of emergency.

In addition to cruise insurance, other types of travel insurance policies provide cancellation for business-related reasons or even for any reason. These policies, while more expensive than the standard 4% - 8% of the trip cost, offer a very high level of coverage.

What to Know and Where to Buy

Ansell advises travelers to check their current health and homeowners policies to see what coverage they have and then look around for a reputable travel insurance provider to cover any gaps. “Many people are surprised to find that their medical insurance may not cover them in international waters, and may provide no coverage at all for medical evacuation,” he said.

Cruise travel insurance policies can be purchased from the cruise line itself, through a travel agent, a private insurance firm, or online. Ansell advises travelers to check whether their policy covers the entire trip, including airfare as well as flights, hotel, shore excursions and other arrangements.

About UStiA

UStiA promotes fairness, integrity and a commitment to excellence in the travel insurance industry. With a mission to educate the public on travel insurance while maintaining high industry standards, the UStiA is a non-profit association of insurance carriers and allied businesses involved in the development, administration and marketing of travel insurance and assistance. In 2004, UStiA member companies provided travel insurance policies to more than 17 million people. Travel insurance is available from travel agencies, airlines, tour operators, hotels and resorts, and insurance brokers as well as through the Internet.