Cruise insurance, does it cover air travel?

[yvrbos]

Hi,

 

I am looking at trip insurance policies. I found one that provides specifically cruise insurance, Nationwide Choice Cruise. I have read through their policy and it seems like a good policy but it really doesn’t mention air being covered. Does anyone know if this covers air transportation as well? Or should I go with a traditional policy?

[Babr]

What I’m finding in this time of many cancellations is that insurance covers the change fees charged by the airlines . You do not get the full dollar value of what you paid for the tickets.

 

As best as I can determine, here’s why. Most likely you bought a nonrefundable fare. When you cancel, the airline charges you a change or cancellation fee and issues the rest as a credit to be used within a year. Insurance, of course, will not pay if you have been compensated by the airline. They may pay your fees.

 

If you bought a refundable fare, which most people do not because they are more expensive, then you get a refund from the airline. Insurance does not come into play.

 

The part I do not understand is why the insurance requires you to include all nonrefundable expenses if they are not going to pay the cost of the air. Why not just insure the fees?

 

I hope I am misunderstanding, and someone will come along and tell me how it works. If one has no plans or is not able to travel, why can’t he forfeit the ticket altogether and get a cash refund, especially since those dollars were included in the amount insured.  Why insure $$$$$ for the return of fees only and a useless ticket?

[klfrodo]

3 hours ago, Babr said:

 

 

The part I do not understand is why the insurance requires you to include all nonrefundable expenses if they are not going to pay the cost of the air. Why not just insure the fees?

 

 

You answered it,,, IF you are buying travel insurance AND you want Pre-Existing Conditions waived, AND/OR you want CFAR (Cancel For Any Reason), MANY/NOT ALL (Depends on the State laws in which you reside) policies require you to cover the entire trip minus REFUNDABLE expenses.

 

Airfare is refundable from the airline in the form of a credit to be used in a year. You can't double dip and/or make a profit off of insurance. Therefore, don't include it in your trip costs.

The other option I would assume is that you do include it, wait out the year for the airline credit, get something from the airline in writing that you didn't use the credit, then go back and file the claim for the unused airfare.

 

I don't cover my airfare because I have status with the airline and all change fees or charges are waived. I also don't cover cancellation and such. I get that coverage from my credit card. I only get medical and evac. My typical plan cost is about $40 per person and since I live in Washington State, I get pre-existing conditions waived.

Edited March 1, 2020 by klfrodo

[Babr]

Yep. I was having trouble thinking through this because I hadn’t given it any thought before, and I was making some false assumptions. All of our big trips have been paid for with FF miles so only redeposit fees were at risk. Less expensive trips have been paid for with cash, but we’ve never had to cancel so I have no experience.

The word “nonrefundable” got in the way. Although you do not get your money back, you are compensated with a credit less the  applicable fees. I was thinking you could forfeit the ticket if you had no use for it in the foreseeable future and get reimbursed by insurance.  I guess not. For insurance purposes, you have to think of it as refundable.

 

I’m wondering about the guy in a recent thread who was out $7800 for business class tickets. He ended up booking another cruise so he could use the airfare.  
 

Are you saying he should not have included the $7800 in the amount covered?  Would that still satisfy the requirements for pre-existing conditions and/ or CFAR?

 

 

 

 

[gailellen12]

I purchased trip insurance as usual; only to find that if my trip is not cancelled basically nothing will be covered and I will take a hit in the pocketbook.   Hindsight is 20/20 I guess but in many years of travel and purchasing insurance for every trip and never needing to file any kind of a claim (not even luggage delay)  I was lulled into complacency regarding close examination of my policy regarding reimbursement and medical coverage.  I do understand the uniqueness of this situation or, as my TA describes it, "we have never seen anything like this and are in unchartered waters (to coin a metaphor).  I do know that in the future I will definitely consider upgrading all aspects of my coverage.