Serious question: Why does anyone buy trip insurance unless old or tight budget?

[rics321]

While insurance of products is equivalent to burning money (like extended warrant on crap you buy at best buy etc.).

 

I have to actually agree with many posters that emergency medical insurance while generally speaking a loss making proposition is necessary as it can mitigate serious financial setbacks in event of a catastrophic event. That said I would never purchase any baggage loss or delay insurance etc. because those are typically covered by the many credit cards now and don't result in losses of catastrophic nature. Also I would never buy the insurance from the ship .... it is inflated and provides coverage you don't need and doesn't provide coverage where you really need!

 

I have a 1 million USD policy for emergency medical treatment when I travel out of my country. I think the ncl policy only covers $50,000 ... also my policy actually covers any and all pre existing conditions (without that the policy is worthless) and covers all my foreign travels for a whole year! My policy costs $165 a year and I am out of country 4-5 months a year so its great value.

 

NCL policy buyers beware ..... say you are taking a medication for heart care and you get a heart attack on the ship .... you are covered $0. So even if you don't mind pay the inflated $$$$ for your policy, you need to know in most cases that policy is worthless. It is necessary to get a policy which covers only emergency medical treatment but with my pre-existing condition rider.

[The Mister]

Insurance, ideally, should be for "low frequency, high severity" events.

 

To break it down:

Low frequency, low severity: Doesn't happen often, and when it does, it doesn't cost that much. E.g., your toaster breaks. You don't buy toaster insurance.

High frequency, low severity: Happens often, but doesn't cost that much. E.g., your kid scrapes his knee. Happens most weeks. You don't need to buy insurance to afford a box of bandages.

High frequency, high severity: Happens often and costs too much. E.g., your home, which was built along a faultline on top of a sinkhole, needs to have its foundation repaired repeatedly. You may want insurance, but no insurance company would willingly cover you unless required to by force of law. This is called "uninsurable".

Low frequency, high severity: Occurs rarely, but when it does, costs a lot. E.g., you die; you fall from a zipline in Honduras and break a leg; you develop cancer; you are involved in an automobile accident.

 

Only the last category is *insurable*.

 

Yes, there are things that people call "insurance" that really are not, such as health "insurance". Granted, one can argue that there is a net societal good in having health coverage that covers more than just catastrophic losses. (E.g., a policy that pays for regular preventative maintenance can be less expensive than paying for treatment - ounce of prevention, etc.) But it's not strictly "insurance".

 

I would suggest that the medical portion of travel insurance is perfectly reasonable. Profit / commissions may be a bit on the rich side, but there's enough variety of coverage out there that the market keeps it from being totally unreasonable. I'm happy to be paying $78 to cover our family of four's upcoming cruise.

[RDC1]

Its not the flying off the ship. The CG does that for free. The problem becomes when he breaks his leg in Tortola is hospitalized there, the ship leaves and then you have to get him and you home. I don't buy insurance for close by ports(Bahamas Bermuda etc) but my health insurance covers me world wide. but I do for more exotic locations(like Africa, Asia etc).

You need to look at your risk tolerance, coverage you already have and the chance you won't be able to make the ship for any reason. Travel insurance runs about 5-8 percent(more if you buy the cancel for any reason option). Is that worth it for you?

 

Maybe, maybe not, depends upon in whose waters you are in when the accident occurs. Might be dependent upon a commercial company for evacuation off of the ship, when outside US waters. Other then in US waters and areas relatively close to the US, you can pretty much be assured it won't be the coast guard.

[Bars7816]

"...I think the wording of your post was condescending and insulting and completely unnecessary."

 

Just young -- and invincible! I would think younger people might be at a higher risk of injury due to behavior choices aboard a ship. The funny thing is, insurance costs less for young people, but they still pooh-pooh it!

 

We never cruise without insurance. Even $2,000 or so is a lot to lose.

[philip_eunice1]

Because however blessed our lives inevitably bad thing happen to use all

 

 

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[sparks1093]

I can "afford" to lose the $4000 we paid for the trip, otherwise we wouldn't be taking it, but if I can insure against circumstances outside of my control for less than 10% I will do it because it would be nice to receive that money back. As I said, I could just buy medical/medevac coverage but the comprehensive policy is not that much more.

[sverigecruiser]

But the bottom line is that trip insurance is an industry with a HUGE profit margin. The way they make that profit is by overcharging people like you who are convinced you're getting value because it's "just $500" or whatever.

 

It's like gambling. An industri with a HUGE profit margin. People bet and gamble and some win a lot but the industry still earn lots of money! Most people loose but some win.

 

Most people could save money without travel insurence but some people really benefit from it.

 

I can pay $300 every year for travel insurence for a hundred years but it's still much less than what it cost to be sick or injured at the wrong location.

 

If my trip cost $15000 and the insurence cost $300, it's defenitely worth it.

[luvtheships]

Step 1 Research cruises dates prices

 

Step 2. Book cruise with great online ta reminding him that you will be expecting any and all price drops and deals. But he knows that already because he has saved you thousands of dollars at final payment before and at the same time gotten you upgrades. Lol

 

 

Step 3. Buy cruise insurance within 14 days of initial deposit from a 3 rd party insurer and remembering when deciding how much your cruise cost for insurance purposes that taxes and port fees do not need to be covered as they are fully refundable should you cancel at last minute. This makes a difference as insurance quotes are priced out in $500 increments. Therefore a cruise costing $2900 including $400 in port charges and taxes should be insured for $2500 versus $2900. The $2900 would round up to $3000 for insurance premium pricing purposes.

 

 

Step 3 is just a given cost of travel

Like new clothing. Luggage. Passport cost. Etc

 

Oh and tipping as well lol

 

 

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Edited July 24, 2014 by luvtheships

[luvtheships]

It's like gambling. An industri with a HUGE profit margin. People bet and gamble and some win a lot but the industry still earn lots of money! Most people loose but some win.

 

Most people could save money without travel insurence but some people really benefit from it.

 

I can pay $300 every year for travel insurence for a hundred years but it's still much less than what it cost to be sick or injured at the wrong location.

 

If my trip cost $15000 and the insurence cost $300, it's defenitely worth it.

 

You are spot on with your price quote

 

My $20000 trip cost me $400.

 

I added up airfare. Cruise cost non refundable rail tickets and pre and post hotel costs and since I knew to estimate the pre paid timed admissions to places like the Vatican that I could only buy 30 days pre trip but would definitely be getting I added that in as well.

 

 

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[luvtheships]

It should also be noted that while it is best to buy with 14 days of initial deposit, if later on after your purchase of insurance, you find your dates have changed due to pre and post cruise stays or your non refundable non cruise extra costs are higher than your initial estimate.... The insurance companies usually allow one change

 

This will not have anything to do with " pre existing" issues. Which us why you purchased the policy within 14 days in the first place.

 

 

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[karoo]

Not trying to be condescending here, but trip insurance is one of the worst value things one can purchase. It's pretty much throwing money away unless you have a high chance of using it.

 

 

 

I can only think of three scenarios where it makes sense to purchase trip insurance:

 

 

 

1) You are living on a tight budget, and the money you lose by not being able to go would be so financially devastating that you couldn't travel again for a long time.

 

 

 

2) You are old or in poor health, and there is a fair chance that something will change for the worse between now and your trip.

 

 

 

3) You have a family member who is old or in poor health, and there is a fair chance you will have to attend their funeral or final details, and have to cancel the trip.

 

 

 

Otherwise, it's a complete waste of money, yet I see many upper-middle class families waste their money on this garbage.

 

 

 

Someone please explain to me why they bother.

 

 

We have a saying over here- if you can't afford travel insurance you can't afford to travel. So it is just factored into our travel costs when we travel OS. Especially to the US because we have been told medical costs are exorbitant in the US. Most of us are in good health, but accidents or health issues can arise when you least expect it. I would hate to end up thousands out if pocket. So yes I lay out just over. $100 each time I travel, but it's worth it for peace of mind.

 

 

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[Sparkygirl]

Not trying to be condescending here, but trip insurance is one of the worst value things one can purchase. It's pretty much throwing money away unless you have a high chance of using it.

 

 

 

I can only think of three scenarios where it makes sense to purchase trip insurance:

 

 

 

1) You are living on a tight budget, and the money you lose by not being able to go would be so financially devastating that you couldn't travel again for a long time.

 

 

 

2) You are old or in poor health, and there is a fair chance that something will change for the worse between now and your trip.

 

 

 

3) You have a family member who is old or in poor health, and there is a fair chance you will have to attend their funeral or final details, and have to cancel the trip.

 

 

 

Otherwise, it's a complete waste of money, yet I see many upper-middle class families waste their money on this garbage.

 

 

 

Someone please explain to me why they bother.

 

 

Because accidents happen! The one trip we didn't get trip insurance we wished we did. We got lucky our daughter was hospitalized in FL not elsewhere and that we had a back up plan of where to stay. Had it been anywhere else we would have had major problems and because without trip insurance the cruise line is of minimal help and even then it was frustrating that the hospital staff stepped in

 

 

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[big al]

Insurance is good if:

 

1) You anticipate a possible death in the family and you may have to attend the funeral

 

2)Someone in the family has a chronic illness/ailment (arthritis,any terminal illness,heart condition,etc.) that would require immediate attention and cancellation of the cruise.

3)You live in a potentially volatile area for weather (I.E.-Florida for hurricanes,mid west for tornados,etc.) and 3 days before you are to leave,a hurricane coming your way threatens the area and you must cancel to stay and protect your home…

 

4)Any emergency such as loss of job,death of a loved one,natural disaster,chronic illness,etc…

 

Any of these possibilities would be a good idea to invest a small amount of money to be covered. It also covers you if you are injured on a tropical island and must go to the hospital/emergency room. Ask the agent what exactly does insurance cover and does not cover.

 

These are the 4 main reasons to buy insurance....

 

Big Al

[TSUmom]

OMG

There are lots of reasons. If I sail a balcony room, it would not be the biggest loss to be out $1800. But when you book a suite and pay $5000 or more and something comes up and you need to cancel you are LOSING BIG BUCKS. The dog gets sick, someone in your family gets sick or dies, weather or traffic makes you miss the cruise, or you get sick, etc. I like the NCL insurance which you can cancel for no reason and get 75% credit on the next cruise. With all in the world that can go wrong, it pays to be protected.

I don't fly to the cruise since I live in Miami but insurance also covers missed flights, medical emergencies during the cruise and lost or stolen luggage.

If you are spending more than $1500 on a cruise it is DEFINATELY worth it!

 

My thoughts exactly..

[Warm Breezes]

I can "afford" to lose the $4000 we paid for the trip, otherwise we wouldn't be taking it, but if I can insure against circumstances outside of my control for less than 10% I will do it because it would be nice to receive that money back. As I said, I could just buy medical/medevac coverage but the comprehensive policy is not that much more.

 

Exactly. While we can "afford" to lose it, it would be a hard pill for me to swallow if we did. I'm too Dutch to just throw that kind of money away. We have had too many near hits and one direct hit where we cancelled a cruise and it was nice to be able to go home and mourn knowing we could rebook for another time without taking a loss. It doesn't cost that much to insure with the comprehensive policy. I've never paid more than $120 for the 4 of us and that covers the medical/medivac and trip cancellation/delays and since I get the insurance right after I book, pre-existing conditions are covered. That's a pill I can easily swallow.

Edited July 24, 2014 by Warm Breezes

[smeyer418]

Maybe, maybe not, depends upon in whose waters you are in when the accident occurs. Might be dependent upon a commercial company for evacuation off of the ship, when outside US waters. Other then in US waters and areas relatively close to the US, you can pretty much be assured it won't be the coast guard.

I never have heard of anyone being evacuated off a ship except by the CG of the country nearby...and NONE of them charge. If there is no CG to get you the ship goes to the nearest port with some sort of "hospital"...that becomes your problem to get evacuated from.

[Markanddonna]

I have been on two transatlantics (which I realize has an older passenger group) and learned that things DO happen. On the last one, the captain announced a med evacuation was in progress off the coast of England or Denmark. We saw the helicopters landing. We also heard someone died. All those ships have a morgue/holding area.

 

On another cruise, we actually met a younger woman who had a major medical emergency at the ports in Spain and needed an MRI or CT-scan that the ship's doctor had arrange because of an abdominal blockage. I believe two people died on this voyage also. Those were just things I heard about.

 

I have learned to purchase the insurance through insuremytrip as soon as I book. I cancelled one cruise and the company let me switch the coverage to another booking for six months later. I don't worry too much about the actual price of the trip because we travel rather inexpensively, but I do make sure I have medical and med evacuation insurance for trips overseas.

[smeyer418]

I have been on two transatlantics (which I realize has an older passenger group) and learned that things DO happen. On the last one, the captain announced a med evacuation was in progress off the coast of England or Denmark. We saw the helicopters landing. We also heard someone died. All those ships have a morgue/holding area.

 

On another cruise, we actually met a younger woman who had a major medical emergency at the ports in Spain and needed an MRI or CT-scan that the ship's doctor had arrange because of an abdominal blockage. I believe two people died on this voyage also. Those were just things I heard about.

 

I have learned to purchase the insurance through insuremytrip as soon as I book. I cancelled one cruise and the company let me switch the coverage to another booking for six months later. I don't worry too much about the actual price of the trip because we travel rather inexpensively, but I do make sure I have medical and med evacuation insurance for trips overseas.

Spain has some very good and relatively inexpensive hospitals...I set up a network for people in the UK to use in an emergency....about 30 years ago...

[GeezerCouple]

I never have heard of anyone being evacuated off a ship except by the CG of the country nearby...and NONE of them charge. If there is no CG to get you the ship goes to the nearest port with some sort of "hospital"...that becomes your problem to get evacuated from.

 

That's not the point, as has been, yes, pointed out many times already.

 

The MEDICAL/SURGICAL/HOSPITAL costs could be catastrophic for those without regular insurance coverage in another country. Sure, might be only a few thousand. But it could skyrocket if ICU, surgery, etc., is needed.

Then there might be need for special transportation home, rather than staying IN the foreign hospital or rehab.

 

You wrote it: "... that becomes your problem to get evacuated from" - and that would only happen when you are recovered enough to travel.

And it assumes you were able to arrange payment in the first place so you get prompt treatment, especially if the care is likely to be prolonged and/or very expensive.

 

People don't seem to be arguing about "whether or how much" homeowners' insurance to get. This isn't any different. People have different risk tolerance thresholds, just like people have different preferences in travel destinations... and insurance choices.

 

GeezerCouple

[smeyer418]

That's not the point, as has been, yes, pointed out many times already.

 

The MEDICAL/SURGICAL/HOSPITAL costs could be catastrophic for those without regular insurance coverage in another country. Sure, might be only a few thousand. But it could skyrocket if ICU, surgery, etc., is needed.

Then there might be need for special transportation home, rather than staying IN the foreign hospital or rehab.

 

You wrote it: "... that becomes your problem to get evacuated from" - and that would only happen when you are recovered enough to travel.

And it assumes you were able to arrange payment in the first place so you get prompt treatment, especially if the care is likely to be prolonged and/or very expensive.

 

People don't seem to be arguing about "whether or how much" homeowners' insurance to get. This isn't any different. People have different risk tolerance thresholds, just like people have different preferences in travel destinations... and insurance choices.

 

GeezerCouple

 

actually there are a couple of services that will evacuate you before you recover and at least one that allows you to insure that. http://medjetassist.com/

 

My point is simple. Its not the cost of the med evac from the ship that is a problem. Its the other costs. Nothing more nothing less. I believe in buying insurance. but not for something that is free. It could cost $50,000 or more to be evacuated from one country back to the US and its the rare US medical insurance coverage that will pay for that while most but not all travel insurance policies will.

[GeezerCouple]

It should also be noted that while it is best to buy with 14 days of initial deposit, if later on after your purchase of insurance, you find your dates have changed due to pre and post cruise stays or your non refundable non cruise extra costs are higher than your initial estimate.... The insurance companies usually allow one change

 

This will not have anything to do with " pre existing" issues. Which us why you purchased the policy within 14 days in the first place.

 

 

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There are policies available through TravelInsured (and possibly other insurers) that allow purchase within 21 days (and still cover pre-existing conditions) and they allow one to add incrementally to the coverage, in $500 increments, as one pays increasing non-refundable costs. There is no problem adjusting one's travel dates to take into account something like starting earlier, perhaps for a pre-cruise tour, or returning home later, perhaps because of a post-cruise tour.

 

IF one CANCELS the trip entirely withOUT filing a claim (perhaps during the many months when there is only a refundable deposit needed), one can RE-APPLY the coverage to a totally different trip (different dates, different destination, etc.) once per policy.

 

We've used several of these benefits, including re-apply the coverage to a totally different trip, with no loss of premium.

And for trips we did take, we've adjusted and re-adjusted the departure and return dates several times, as our plans firmed up (usually once we paid for non-refundable airfare). We just phone the nice folks at TripInsuranceStore.com , tell them the new dates for the trip, and we then get an updated policy confirmation.

 

Best of all, when we had a (large) claim the very first time we had this coverage, TravelInsured paid promptly once they had all the necessary documentation.

 

GeezerCouple

[GeezerCouple]

actually there are a couple of services that will evacuate you before you recover and at least one that allows you to insure that. http://medjetassist.com/

 

My point is simple. Its not the cost of the med evac from the ship that is a problem. Its the other costs. Nothing more nothing less. I believe in buying insurance. but not for something that is free. It could cost $50,000 or more to be evacuated from one country back to the US and its the rare US medical insurance coverage that will pay for that while most but not all travel insurance policies will.

 

You are correct, but your comments are incomplete.

 

As an aside, we have MedJetAssist, so we can be transported from ANY hospital (anywhere) if either of us in an inpatient, TO the hospital of OUR choice - no one else chooses (not beancounters, not local medical staff).

 

However, MedJetAssist will only transport you if they determine that you are medically stable enough to be transported.

 

So someone in an expensive ICU might well not be stable enough for long enough... to run up one enormous medical bill.

THAT is what the travel medical insurance is for.

Also, not everything requires "inpatient" treatment, so MedJetAssist won't help out then. But that's less likely to involve catastrophic medical care in the first place.

 

But one never knows..........

 

GeezerCouple

[Laszlo]

But seriously, here is the reality of the situation.

 

If you're the type who is going to be hung up on losing a few thousand because of an unusual event causing the non-refundable cancellation of your trip, go ahead and get the trip insurance. As some have said, the peace of mind is probably worth it if you can't just shrug your shoulders and say, "Well, it sucks to lose this money, but I can afford it and I still did the right thing by not insuring a relatively small purchase."

 

If you're the type who is not good at figuring out how to get many of the same benefits cheaper/free (for example, the Amex card provides a lot of this stuff for free), again, buy the trip insurance.

 

If you honestly couldn't afford the financial hit from your trip being canceled (and therefore couldn't replace the trip in the near future), buy the trip insurance.

 

If you're scared of high medical bills in foreign countries or high med-evac costs, buy the insurance (but only get the health/evac coverage).

 

If there is something in your life making a cancellation fairly likely (you being in poor health, a relative being in poor health, etc), then buy the insurance.

 

But the bottom line is that trip insurance is an industry with a HUGE profit margin. The way they make that profit is by overcharging people like you who are convinced you're getting value because it's "just $500" or whatever.

 

I can totally understand if you are trying to insure against 5-figure losses (such as the medical bills abroad), but you can buy separate insurance for that for cheaper.

 

Too many people just automatically grab the trip insurance because they think it's a financially prudent thing to do, when in reality they are getting fleeced a little bit at a time.

 

I saw a thread recently here where PCCs were sneaking trip insurance onto people's cruise purchases without permission, and in fact one case where the PCC said to just "deduct it if you don't want it", so he still would get credit for the sale. These PCCs do it because they score big bonuses for selling this stuff to overly cautious suckers.

 

If you really do want to buy this insurance, that's your prerogative, but at least be wise enough to shop around and go with a company that isn't building the huge commissions and gigantic profit margins into their rates.

 

Good grief................8 freaking pages???

 

Some people buy it and some don't. Some people use it and some don't. Why are you so concerned about what other people do? :rolleyes:

 

We buy it for cruises every time. Two people about $90, we also buy it when we rent a house at the beach for two weeks. (Hurricane Insurance). $125 for a 7K rental

Edited July 24, 2014 by Laszlo

[Twiz]

We never leave home without it too many what if's can happen Its cheap piece of mind as far as I am concerned.....Just like homeowner, health, auto insurance no one ever wants to have to make a claim but its there if you need it !!

[DaisyGoldberg]

We started buying travel insurance after the experience of a coworker of mine, who went to Machu Picchu a few years ago and got seriously ill just as the mudslides were preventing regular transportation down the mountain.

 

Medical evacuation to sea level was something like $50,000, payable up front, thank you very much. Blue cross was not going to get involved until she was home and they could review the claim.

 

In short, you never know what series of weird events can take place, and if you're going to be far from friends and family able to rally and swoop down to help, a good insurance policy is worth a few hundred bucks if you're already spending thousands.