Should you buy travel insurance (trip cancelation/interruption)?
Recent happenings in the cruise industry beg the question: should you buy travel insurance that covers trip cancelation and/or interruption? Two recent, well-publicized events, both involving Norwegian Cruise Line (NCL), have made their way into social media, mass media, and onto the radar of travel consumer advocate, Chris Elliott , whose blog I highly recommend.
The Norwegian Pearl in Alaska. Photo: Randall Shirley
In both cases, the passengers had to cancel their NCL cruise at the last minute for a true tragedy. One involved death of a parent , and the other had a son diagnosed with cancer just before the cruise date. In both cases, NCL has refused to offer a refund or fully reschedule the cruise.
My husband, Denni, is a former travel agent, and was licensed to sell travel insurance.*
“I always recommended insurance,” Denni says. “You need to decide, what can you afford to lose? If your cruise costs $1,000 and you can afford to lose $1,000, then insurance may not be something you need. But I don’t know a lot of people who can afford to lose that $1,000.”
“The unfortunate recent NCL passenger situations are exactly what the insurance is for, he adds. The cruise company (or any airline or travel provider) could be compassionate and offer you a credit on future travel, but they’re not obligated to do so.”
Same Sex Couples: Make sure the insurance applies to you.
If you are legally married to a same-sex spouse, make sure any insurance you consider purchasing applies to same-sex couples under applicable laws. Double-check this for any policy you are considering, regardless of where you live. Don’t assume that policies have been updated–ask! It would suck to need to cancel because of a sick spouse, only to find out the policy didn’t consider him or her to be your “family member.”
When should you buy the insurance?
“If you’re going to purchase the insurance, do so at the time of your initial deposit or any other nonrefundable amount—that’s when it takes effect,” Denni explains. “You have to purchase the insurance at that point for it to be in effect. However, before buying the policy, make sure you know what it does and does not cover. Policies don’t cover your trip if you simply change your mind and decide not to travel without a qualifying reason.”
It’s also worth noting: while companies like NCL do offer their own travel insurance—indeed it’s a revenue generator for them—you can buy travel insurance through other parties, and your travel agent is a good resource. But remember Denni’s advice: it must be done at the time of you make your very first non-refundable payment or deposit on any portion of your trip.
*Note: the thoughts here are purely to introduce the idea of insurance, and are not meant to advise you on what is right for you. Always consult with a licensed insurance seller about your personal situation and needs before buying any insurance product.
