Is trip insurance worthless?

[7SeasLover]

I have purchased travel insurance for the last 5 trips. I have never used my insurance for medical reasons, but I did use it when my hard luggage was damaged by the airline (taped closed and was the last off the plane), then damaged again by the cruiseline (no NCL) getting off the cruise ship. By the time we flew back to Los Angeles, my poor bag had been taped 3 times. It was completely smashed, one wheel was broken off and the handle was cracked. Looked like it was used in that old TV commercial of dropping a suitcase out of a plane!

 

I took digital photos of my suitcase, bought a new soft suitcase for $150 and turned both in with a letter. About 4 weeks later I got an envelope from the insurance company (TravelEx) and expected a denial letter, because I didn't include a purchase receipt for the damaged suitcase. To my surprise I found a check for the full cost of the replacement.

 

The amount was more that what I paid for the policy. I was pleased, and while I've spent more in premiums than I have for using the insurance, I travel with peace of mind. I'm covered.

 

I'll always buy travel insurance - just like I'll always buy car, homeowner's and life insurance. I hate paying the premium, but I sure wouldn't be without it. It's just too dangerous out there to be without it - especially in a NY cab!

[Globaliser]

Are people who work in the insurance industry so out of touch that they don't realize that most people feel that insurance companies happily collect premiums, and then have a battery of lawyers who figure out how to get out of paying claims.

 

I don't buy insurance because I have more confidence that I will be able to walk onto the Dawn in New York within 10 minutes than having an insurance company pay off for what I perceive the policy covers.

 

That's the truth, whether it's trip insurance, homeowners insurance or auto insurance.

I'm not in the insurance industry. As a customer, I've had to make insurance claims a number of times. People have driven into my car; I've lost things on trips; my house has been flooded by leaking pipes.

 

Not a single time have I had any trouble at all from the relevant insurance company. Each one has cheerfully paid what they owed me, after checking to see exactly what that is, with no hassle. On some occasions, they think that I've been too slow to get the work done; they've hassled me to get it finished so they can pay up and close the file.

 

No doubt that there may be some bad apples in the insurance industry, but this overall attitude to insurers is just prejudice.

 

If you can afford to pay 5, 6 or 7 figure sums out of your own pocket to cover your losses and claims against you when things go wrong, then you live on a different financial planet from mine.

[SailAways]

I've read comments on this board today that seem to say just that: The insurance companies won't reimburse you in the case of cancellation even for a legitimate cause. I'd love to stop buying trip insurance!

 

Absolutely - right up to the point when you need to make a claim.

Wouldn't we all like to stop buying all sorts of insurance - but common sense tells us that we don't have the multi thousands of dollars to cover unexpected disasters.

 

There is no way that we would cruise without full coverage insurance.

If we can afford thousands of dollars for a cruise, there is no way that

we aren't going to protect ourselves, our investment, and have the peace

of mind which the insurance gives us.

 

We consider it part of the cruise, just as homeowners, auto, etc. insurance is part of ownership. It seems to only make sense to protect your investments.

 

Our roof was torn off by a rogue tornado a few years back. The insurance adjuster came to our home, inspected the damage, sat in his car, did the calculations, conferred with his home office via cell phone, wrote out a check for repair and was on his way. (We live in a remote area, thus the immediate action, rather than the usual slow back to the office situation).

 

So, yes is the answer to your question, if you are a millionaire or like to live dangerously!

[comfixit]

Its interesting how the general opinion seems to be insurance is really only truly neccessary for catastrophic situations. I wonder if there is an insurance that only covers catastrophic claims. For example a travel insurance with a

$10,000 dollar deductable. In such a situation given the probability etc... of a claim over that amount I think the prices would plummet to an amount that no individual on this board would consider unwise even the most skeptical.

 

Does anyone know if a travel policy with a very high deductible and comparatively low price exists?

[SailAways]

Does anyone know if a travel policy with a very high deductible and comparatively low price exists?

 

I did a Google search yesterday, and there are many options, but I am in no position to recommend any of them. It was enlightening.

I entered "Cruise Insurance" - eventually ending up with all types.

The more interesting options seemed to be available in other countries, but

I would need to do much more research before an opinion could be formed.

[smeyer418]

Its interesting how the general opinion seems to be insurance is really only truly neccessary for catastrophic situations. I wonder if there is an insurance that only covers catastrophic claims. For example a travel insurance with a

$10,000 dollar deductable. In such a situation given the probability etc... of a claim over that amount I think the prices would plummet to an amount that no individual on this board would consider unwise even the most skeptical.

 

Does anyone know if a travel policy with a very high deductible and comparatively low price exists?

 

Travel insurance is so cheap that I doubt that they will offer that. Some insurance doesn't have much covereage.....

[Nectarologist]

We have never purchased the insurance and have never needed it. Even if at some point we would need it, we've saved enough over the many years we've

cruised to make up the difference. Others we have cruised with always take the insurance, and they too, have never needed it. Just my opinion.

I agree. I look at it for the long term investment. Just like w/ extended warranties, all the costs over time will cost me way more than the one time I have to replace the item or cancel my trip. To me it's just a matter of paying a little each time as insurance or through an extended warranty or just paying at once for a new product or new trip. That being said I am young (31) & do have health insurance. As I get older I would likely reconsider trip insurance for health reasons but up until now & into the foreseeable future I don't buy it; for me it's a waste.:)

 

If I were to purchase insurance I would go to an independent agent on the web. I know I can find a much better value than my travel agent offers, and with better terms, at least better for me. I think it just comes down to each person's situation & the level of risk they feel comfortable with.

[hotspur]

I agree. I look at it for the long term investment. Just like w/ extended warranties, all the costs over time will cost me way more than the one time I have to replace the item or cancel my trip.)

Depends on what the "item" is. Replacing a television, or a personal computer, or a refrigerator, or even the cost of a canceled trip, is a relative nit compared to the cost of being helicoptered from a cruise ship 500 miles out in the Atlantic to a Boston hospital. So the "extended warranty" analogy is a real stretch.

 

And looking at insurance as an "investment" makes little sense. You look at it as a way to protect your investments...against catastrophic losses.

[BishCruiser]

even the cost of a canceled trip, is a relative nit compared to the cost of being helicoptered from a cruise ship 500 miles out in the Atlantic to a Boston hospital.

The topic of insurance has always confused me... which part of the insurance would cover the helicopter?

 

I have been offered "medical" and "non-medical" for my cruises. I never take the medical, as I have my own (although I don't actually know what it covers...). As for non-medical, I didn't take it last year because I booked so close to the sailing date and knew there was no way in hell anyone was going to keep me off that ship! This year, however, I took it.

[Nectarologist]

Depends on what the "item" is. Replacing a television, or a personal computer, or a refrigerator, or even the cost of a canceled trip, is a relative nit compared to the cost of being helicoptered from a cruise ship 500 miles out in the Atlantic to a Boston hospital. So the "extended warranty" analogy is a real stretch.

 

And looking at insurance as an "investment" makes little sense. You look at it as a way to protect your investments...against catastrophic losses.

 

If you are buying trip insurance only for a catastrophic even then I would agree but other than that I don't. I don't consider being coptered off a boat as an event may happen when I decide to book a trip, it's just not going to happen. If I thought it was a possibility then I wouldn't drive a car b/c I may get into a fatal accident. I realize there is a mathematical chance but then there is a chance of winning the lotto too. The analogy is only out of place when you factor in being airlifted off a boat to save someone's life (no one will ever take that many trips to make up the expense in saved insurance premiums). Given the other reasons for having to cancel, say the flu for example or a broken leg, it makes perfect sense, weather delays, etc. I had the flu last year & went on the Dawn anyway. I knew I wasn't going to be sick for the whole 10 days so even if I had insurance I still would have went.

I look at the unspent premium as an investment b/c of what I can do with that money instead of wasting it on trip insurance. Besides a vacation is not an "investment" it's an expense. Just not as wasteful as travel insurance.

But for some it's a bargain & more than worth it, if anything just for the peach of mind. In any event I would shop around if I were to buy it.:)

[SailAways]

If you are buying trip insurance only for a catastrophic even then I would agree but other than that I don't. I don't consider being coptered off a boat as an event may happen when I decide to book a trip, IT'S JUST NOT GOING TO HAPPEN'.

But for some it's a bargain & more than worth it, if anything just for the peach of mind. In any event I would shop around if I were to buy it.:)

 

Your crystal ball may become clouded one of these days.

 

The cruise insurance, just as auto, home, etc., has absolutely nothing to

do with age. Do you carry auto insurance? If so, why?

 

Looking at spending a mere extra hundred or so, when making a cruise,

is an easy decision for many.

 

It is a bargain, and peace of mind is important, along with financial security.

 

Not many of us have the thousands of dollars to cover a catastrophic event.

Like it or not, they happen, and surely none of us "KNOW" when they will occur - If so, we would avoid them completely.

[Host CMLA]

I had the flu last year & went on the Dawn anyway. I knew I wasn't going to be sick for the whole 10 days so even if I had insurance I still would have went.

I hope all those passengers that you infected had insurance in case they had to cancel part of their trip because they were sick. :rolleyes:

[Globaliser]

I don't consider being coptered off a boat as an event may happen when I decide to book a trip, it's just not going to happen.

How do you know it's never going to happen to you? It happens to some people, so what makes you immune from the possibility? Who guaranteed that you're never going to get that sick on a ship? And if you need to be taken off the ship, but you've not got insurance because you're so sure that it's not going to happen, what are you going to do? Are you going to just choose to die on board the ship?

 

Obviously, some people really DO live in cloud cuckoo land.

 

But then, it's usually those people who complain bitterly when it does happen, and discover that companies aren't going to cover your risk for free when you could have insured against it.

[DragonflyCruiser]

When checking the fine print be sure to read about what activities they won't cover if injury occurs. Most will not cover parasailing, motorcycles, private aircraft, scuba... If you plan to do any of the adventure type activities just check them out on the trip policy and be sure to check them out on your own personal policy as well. I was going to give my hubby flying lessons and he would not have had any insurance coverage medical or life for that. Just think about what you plan to do and ask questions!

[comfixit]

How do you know it's never going to happen to you? It happens to some people, so what makes you immune from the possibility? Who guaranteed that you're never going to get that sick on a ship? And if you need to be taken off the ship, but you've not got insurance because you're so sure that it's not going to happen, what are you going to do? Are you going to just choose to die on board the ship?

 

Obviously, some people really DO live in cloud cuckoo land.

 

But then, it's usually those people who complain bitterly when it does happen, and discover that companies aren't going to cover your risk for free when you could have insured against it.

 

Wow that response seemed pretty condescending to the poster your quoting just because he says it won't happen to him. In his post he does further clarify that it is very unlikely to happen so much so that he does not even consider it. He knows its a possibility but a very unlikely one.

 

Thats not "cloud cuckoo land" to me.

 

Let me tell you what I think is cuckoo. Find out the average % of return per dollar spent for your typical travel insurance policy. Compare that to the average % of return for some completely bogus way to spend the same amount of money like the pass line for a craps bet in vegas. I think you will find that the average return per dollar spent on travel insurance is much lower then the pass line at the casinos on board the ship.

 

Take 500,000 people. Devide them into two groups. Half spend $150 on cruise insurance, the other half spend $150 on one bet at the craps table. Statisticaly even after footing the medical bills the group betting on the craps table will more likely have much more money in reserve then the group that spends the $150 on insurance :-)

 

A little crazy but true. So if thats true, perhaps Nectarologist isnt completely "cuckoo" for thinking that given the remote probability of collecting that its not the best way to spend his money.

 

I of course have lots of different types of insurance auto, medical, life, disability, malpractice, homeowners etc... but don't purchase every type of insurance I am offered. Some types are worth it some types arn't, Travel is just one of those types that at this point in my life the price outweighs the risk factors in my opinion.

 

Just because I don't think its a must purchase for everyone I do think certain types of individuals should definitely have it due to increased risk factors.

[katybird]

I always buy trip insurance with pre-existing conditions covered. I like the peace of mind it affords us when planning a trip. My parents are well into their 80's and one never knows when an emergency with them will happen...not to mention if my kidney stones decide to have some fun!

 

I feel if I can afford to go on a trip I should be able to afford a few hundred dollars for insurance.

[BishCruiser]

I find that so often people on this board make comments such as, "If someone can afford to go on a cruise, they can afford __________ (insurance, tipping minimums, etc.)". For me, whether or not to buy insurance is a big deal because every dollar I spend on my cruise is a dollar I painstakingly save in advance and don't spend on something else. I am a student and I booked my cruise this year before I actually had enough money to pay for it. While not a particularly wise plan, it motivated me to be creative in looking for funds. I'm picking up a few shifts at work over the christmas break, buying only inexpensive food, etc. I even opted not to buy a few of my textbooks this semester. Any costs outside of the actual cruise, flight, and onboard tipping minimum will be paid for out of my alphaghettis can. Whenever I opt not to spend money on something, or whenever I have any spare change, I put it in the can. In February, I will take a can-opener to it and however much is inside is what I will have to spend on drinks, shore excursions, photos, etc.

 

Basically, my point (yes, I had one somewhere :rolleyes: ) is that it REALLY is worth it to me to carefully weigh out the pros and cons of buying insurance. It's the difference between living off of powdered milk and cheap pasta for another month or eating healthily and buying a bottle of wine at dinner on the cruise.

[pieshops]

bishcruiser,

 

I along with you scrimp and save for my cruise. It is a lot of money for 2 adults and 2 kids to cruise.

 

with that being said, that is exactly why i buy insurance, the price of the insurance certainly adds to the price of the cruise, but it is certainly worth it if you need it. It would kill me to lose it all.

 

No one expects to use it or thinks they will use it, but it is money well spent if you have to

[pieshops]

bishcruiser,

 

I along with you scrimp and save for my cruise. It is a lot of money for 2 adults and 2 kids to cruise.

 

with that being said, that is exactly why i buy insurance, the price of the insurance certainly adds to the price of the cruise, but it is certainly worth it if you need it. It would kill me to lose it all.

 

No one expects to use it or thinks they will use it, but it is money well spent if you have to

[melika091900]

depending on your medical coverage.. it will cover you in case of illness, including medavac...

mine does anyway...

thats why i never get it.....

 

 

melissa

[pieshops]

yours may be differant but the majority of health insurance companies will not cover you at all for anything when you are outside the usa.

[smeyer418]

depending on your medical coverage.. it will cover you in case of illness, including medavac...

mine does anyway...

thats why i never get it.....

 

 

melissa

 

 

I work in the health insurance field. Most insurance (not all) does not cover outside the US, and most will give you a real hard time over the evacuation(they will tell you that you can get the care in Timbacktu) but it does really depend on the policy so read it carefully. California coverage tends to be both more comprehensive and more expensive than many other states with a Department of Corporations managed care office that is very consumer orientated(in my experience). Also some of the largest judgements against managed care companies has also taken place in California so read your policy. Medicare and Medicaid do not cover outside the US(yes there is an exception but it has nothing to do with traveling the ONE exception is if you live in the US but the closest hospital is in Canada from your home).

[seahorse]

I wasn`t going to post on this thread.........but:o

 

There is so much mis-information on here about travel insurance it boggles my mind.

 

Travel insurance is like no other. It changes all the time due to the world situation. It is very difficult to understand and it varies from what country that you are living.

 

Please purchase it from someone that knows what they are selling. If you like one on the internet and don`t have a TA that knows ins. Call that company and tell them your situation and what would be the best coverage for you.

 

Make sure that you understand the pre-existing clause if you need it.....it can be very tricky.

 

Most credit cards do not have full coverage. You may think that you have "Travel Insurance" when you don`t. There is no trip cancellation....no trip interruption....no repatriation. If they tell you it does, believe me, there are loopholes.

 

Sid is correct, your health ins. probably will not cover you when you leave the country and there is no med-vac or repatriation if you, or a loved one dies:(

[melika091900]

I work in the health insurance field. Most insurance (not all) does not cover outside the US, and most will give you a real hard time over the evacuation(they will tell you that you can get the care in Timbacktu) but it does really depend on the policy so read it carefully. California coverage tends to be both more comprehensive and more expensive than many other states with a Department of Corporations managed care office that is very consumer orientated(in my experience). Also some of the largest judgements against managed care companies has also taken place in California so read your policy. Medicare and Medicaid do not cover outside the US(yes there is an exception but it has nothing to do with traveling the ONE exception is if you live in the US but the closest hospital is in Canada from your home).

I have kaiser , and i work for kaiser,, it covers me

ive asked many times,, it covers me wherever I go, even other countries.........

so everyone in california,colorado,georgia. who has kaiser is covered if they have a good plan..

mine is top notch since they are my employer

 

melissa

[melika091900]

I work in the health insurance field. Most insurance (not all) does not cover outside the US, and most will give you a real hard time over the evacuation(they will tell you that you can get the care in Timbacktu) but it does really depend on the policy so read it carefully. California coverage tends to be both more comprehensive and more expensive than many other states with a Department of Corporations managed care office that is very consumer orientated(in my experience). Also some of the largest judgements against managed care companies has also taken place in California so read your policy. Medicare and Medicaid do not cover outside the US(yes there is an exception but it has nothing to do with traveling the ONE exception is if you live in the US but the closest hospital is in Canada from your home).

since you work in the field, you know what kaiser permanente is then right?