Cost of Princess Insurance

[engrdad]

I will be on the Island Princess to Alaska this May. I was considering purchasing the Princess Insurance as my final payment is due next week. I called Berkley to get the cost and was given a price of $103pp based on the 8% of the price of the cruise. They said that I would have to purchase the insurance through my TA. However, when I called my TA, she stated that the cost of the insurance was listed as $133pp.

 

When I started checking into this, 8% of the normal (Princess) cost of our cruise is $133. However, we got a discount from our TA and 8% of the real cost of our cruise is $103. Now I am wondering what is the real cost that I will be paying?

[Host Caroline]

You need to settle this between Princess and your TA to get pinpoint accurate information based on final cost of your cruise. If there is a discrepancy between them you need to find out why?

[cruiseco]

You need to settle this between Princess and your TA to get pinpoint accurate information based on final cost of your cruise. If there is a discrepancy between them you need to find out why?

 

When a xruise line policy is based on a percentage of the fare the only number that matters is the fare as shown in the cruise line's reservation system. The TA may have discounted the fare but that's between the TA and you -- it has nothing to do with the insurer.

 

Say your true fare is $1000 but the TA rebated some commission so you're only paying $900. You cancel when the penalty is 50% of the fare, You lose $450, right? No, the cruise line is going to keep 50% of the $1000 official fare -- $500. The insurer's loss exposure is based on the actual fare -- and thus the actual penalties charged by the cruise line -- not whatever deal you've made with the TA.