A question about cancellation insurance

I had no idea there was an insurance board on CC. I have certainly come to the right place for information, CC always has people with the right experience. :)

We always buy insurance; its a no-brainer and we have always factored the cost into the cruise price. However, when DH went to get the insurance this time the price was insane. The medical wasn't that bad, it was the cancellation insurance. So, I started to do a bit of research and realized that our cruise deposit is fully refundable until 75 days out...so the question I asked myself was, why do we need cancellation insurance so far out when we can cancel without penalty until 75 days before the cruise. I also checked the airlines and they have a set fee if you cancel your flight at 9 months out or 2 months out and that amount was far less than the amount DH was quoted for the cancellation insurance. Our TA always insisted that the insurance be paid ASAP and it was something that we just automatically did; methinks that our TA was making $$ off our ignorance about insurance. The wheels started to turn and it seems to me that we don't need to purchase the cancellation insurance just yet.

My question is, has anyone waited until the 75 day threshold to purchase travel insurance. It makes sense since there are people who book their cruise within the 75 day limit but I still wanted to ask.

BTW - we are Canadian so that will need to be factored in with the answers. ;)

Real quick, when looking at your profile it says you are from the "Great White North" now I'm from Alaska but if you are Canadian we need to know that absolutely because the laws can & do change based on laws in the US vs Canada. So please tell us and adjust your profile for clarity!

And yes for the best and most complete coverage if you are from the US buying travel insurance the first 14 (to 21 days with some policies) is imperative.

As to your agent making money, it's likely not more than $25 so she is not pushing for that reason.

Are you Canadian?

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Yes, I am Canadian and stated that in the last line of my post. ;)

Yes, I am Canadian and stated that in the last line of my post. ;)

I didn't answer because the policies I'm familiar with are for citizens of the USA.

Now... some of them may *also* be available for Canadian citizens, but I don't know.

First, I'd suggest that you contact Steve at

http://www.TripInsuranceStore.com

I do NOT know if he deals with insurance for Canadians, but he'll tell you if he doesn't right away. And in that case, maybe he knows someone who handles that type of insurance.

Meanwhile, to answer some of your questions/uncertainties from a USA policy perspective:

-- Purchasing travel insurance within 10-21 days of making the initial deposit (refundable or not) is often required to get the waiver of the exclusion for pre-existing coverage (meaning, pre-existing medical conditions *would* be covered).

There is at least one company that allows this waiver for insurance purchased within 24 hours of the final payment (but "final" has some specific definitions).

-- Most policies that have the waiver require that one insures ALL NON-refundable payments.

Therefore, if there is a cancellation charge to cancel your air tickets, for example, but you'd get the rest back, then you only need to include that penalty and *not* insure the total cost of the airfare. Yes, this can cut the cost of coverage a lot, especially if one is flying premium class.

-- There are other policies that allow one to insure however much of the travel costs as they wish.

-- Some policies allow one to transfer the deposit once, to an entirely different trip. Thus, if one makes a very early deposit, and then decides not to take that trip, one can switch the deposit to another trip (some restrictions apply, no surprise).

Hope that helps you at least to understand what some of the "requirements" mean, and when or not they are necessary.

Again, I am NOT sure if any of the above applies to Canadian citizens.

Yes, I am Canadian and stated that in the last line of my post. ;)

Needless to say I must not have read that far.... As your location was just not immediately clear. You will need Canadian TI experts to assist you as laws are different. I do but my insurance with min 14 days (actually sooner) of initial deposit because in the US that is a way to cover Pre Existing Medical Conditions and to get Cancel For Any Reason coverage. I do not know if it works the same way in Canada.

And as someone from Alaska your profile may not have provided the same hint it would to others ;)

Needless to say I must not have read that far.... As your location was just not immediately clear. You will need Canadian TI experts to assist you as laws are different. I do but my insurance with min 14 days (actually sooner) of initial deposit because in the US that is a way to cover Pre Existing Medical Conditions and to get Cancel For Any Reason coverage. I do not know if it works the same way in Canada.

 

And as someone from Alaska your profile may not have provided the same hint it would to others ;)

Just to be clear, different insurers/policies have different specific terms.

There are common policies in the USA that allow up to 21 days to get the waiver and CFAR if one wishes.

(Travel Insured has some of these.)

And there is at least one insurer (CSA) that allows the waiver if one purchases within 24 hours of final payment (defined narrowly). CFAR is also available then, but rather pricey.

Now... some of them may *also* be available for Canadian citizens, but I don't know.

 

First, I'd suggest that you contact Steve at

http://www.TripInsuranceStore.com

 

 

Again, I am NOT sure if any of the above applies to Canadian citizens.

They seem to carry the Canadian version of the TravelSafe plan.

In regard to the original question, remember that almost all of the plans you see out there are not specifically for cruises -- they can be used for most types of travel including those that have very different cancellation set-ups than do cruises.

Also, most of the plans have financial default/bankruptcy coverages that go into effect almost immediately after purchase. So if you make a deposit on a cruise and they go bankrupt a month later the insurer will indeed be liable for your loss even though you're not technically losing your money due to your cancellation. With most plans the insurer is at risk of loss immediately because of this and have earned their premium for taking on that risk. Again, you might think your cruise line has zero chance of going bankrupt (they have in the past) but remember these plans cover all types of travel. The insurers probably see bankruptcies/defaults happen all the time with other travel suppliers. Just put a $500 deposit for a Uzbekistan tour next year? I think I'd want my $500 safe just in case the tour operator goes out of business with my money.

Needless to say I must not have read that far.... As your location was just not immediately clear. You will need Canadian TI experts to assist you as laws are different. I do but my insurance with min 14 days (actually sooner) of initial deposit because in the US that is a way to cover Pre Existing Medical Conditions and to get Cancel For Any Reason coverage. I do not know if it works the same way in Canada.

 

And as someone from Alaska your profile may not have provided the same hint it would to others ;)

Google it, its a cultural reference which I have no intension of changing. :rolleyes:

Google it, its a cultural reference which I have no intension of changing. :rolleyes:

Whatever!

We would take some issue with "buying insurance is a no brainer" since it is anything but :). Each person needs to evaluate their own circumstances, risk tolerance, and cost/benefit...and then come to a decison on whether you need insurance, what kind, etc. For example, DW and I spend over 6 month a year traveling of which 70-100 days are on cruises. We never buy cancellation insurance (we are content to self-insure that risk) but do purchase an annual travel medical policy that is relatively inexpensive, covers all of our trips, and gives us $250,000 of medical coverage as compared to the usual $10,000 given by cruise line policies. Folks will spend 7-10% of their trip cost to cover cancellation (which has a limited liability) and somehow not pay attention to the nearly unlimited liability from medical emergencies. We can afford to eat the cost of a trip (we were going to pay for the trip anyway) but cannot afford the potential cost of a major medical problem (which can quickly exceed $100,000).

Hank

Needless to say I must not have read that far.... As your location was just not immediately clear. You will need Canadian TI experts to assist you as laws are different. I do but my insurance with min 14 days (actually sooner) of initial deposit because in the US that is a way to cover Pre Existing Medical Conditions and to get Cancel For Any Reason coverage. I do not know if it works the same way in Canada.

 

And as someone from Alaska your profile may not have provided the same hint it would to others ;)

I have bought HAL insurance always with the final payment in case I decide not to cruise. They honor preexisting conditions and cancellation for any reason if bought by then. There is no downside. I am american but my guess is if you buy through the cruise line that they can let you know about their policies.

If you have a pre existing condition it is best to buy at the time of deposit

You can just insure the deposit amount then add the balance when you pay it

If no pre existing conditions the just purchase the insurance when you pay the balance of the cruise

If you are booking air or non refundable hotels etc then I would buy insurance when you purchase those

We have used RSA insurance..they paid claims fairly quickly once you submit ALL the documents required (there are lots)

You can try insuremytrip dot ca be sure to read the fine print in the policies

Just a word of warning some U.S. insurance companies will not Insure Canadians

Last fall we had bought a policy for a cruise in the summer about a week before the cruise we were informed they would not cover us & refunded our $$

too late to buy Cancellation insurance for another company

I have bought HAL insurance always with the final payment in case I decide not to cruise. They honor preexisting conditions and cancellation for any reason if bought by then. There is no downside. I am american but my guess is if you buy through the cruise line that they can let you know about their policies.

For any-reason cancellation HAL insurance offers a cash refund at 80% or 90% depending on which plan was purchased. For Medical, while it does not have a pre-existing exclusion, only the Platinum plan covers medical at all and it is only $10,000 worth of coverage. That is a downside for any serious medical event or accident. But if one wants it primarily for the cancellation protection (because you already have good international medical coverage without copays or deductibles) it is not bad, at about 10%-12% of cruise cost. A better bargain as one ages...