Travel Insurance on cancelled trip

[tommyrk]

We booked our cruise directly through Royal Caribbean and purchased their travel protection. When trying to get our cruise credit and applying to a new cruise (which has so far taken 12+ hours on the phone), I was told that we would not be getting a credit for the VPP plan after being told by three different travel advisors that we would receive a credit. Has anyone else had an experience similar to this?

[SFinVA]

I have the same issue with Carnival Cruise Lines insurance company (AIG). They paid nothing $0 in claims as the cruise lines have all refunded or offered credits therefore my view is that it is unethical for them to not offer at least a travel insurance credit. I am filing formal complaints  with my state (VA) attorney general, the insurance companies home state attorney general & the travel agency home state attorney general. Don’t let it go as the insurance companies have pocketed millions of $$ without paying any claims. 

[Flatbush Flyer]

The two previous posts remind us of two important recommendations:

 

1) Do not buy travel insurance via the cruise company against which you may file a claim (even though the policy is written by a reputable insurer). At a minimum, the coverage is woefully inadequate. Use a trusted broker (e.g., insuremytrip.com).

 

2) Always book cruises via a trustworthy TA who is a top seller for your preferred cruise line. After all, your direct booking is merely a rounding error in a cruise line's daily "bottom line" while the right TA sells $$ millions for them. Don't listen to folks who say they prefer "owning their booking" since, while your "on hold" with a low level phone rep, your TA is speed dialing the cruise line's regional sales rep.

 

Nonetheless (and while our most recent insurer did give us a credit to use for our next cruise when Oceania cancelled our May/June cruise),  insurance credits/refunds for cancelled cruises (where no claims have been made or are pending) is a courtesy but not a requirement.

 

After all, if you don't use your medical or auto  insurance during a policy term, you don't necessarily get a refund (though some auto insurers will provide "good driver" discounts). 

[SFinVA]

I used Orbitz for booking the cruise and they receive $ for selling the insurance as a partner. They didn’t have any claims to pay unlike your car insurance company.  No more Orbitz or Travel Guard for me. 

Edited June 28, 2020 by SFinVA

[HouLady]

Go with Allianz, there was no problem getting the amount credited back to my credit card

[Flatbush Flyer]

6 minutes ago, HouLady said:

Go with Allianz, there was no problem getting the amount credited back to my credit card

This is TERRIBLE TERRIBLE TERRIBLE advice.

Allianz is a very good company with excellent coverage for CERTAIN PEOPLE and CERTAIN CIRCUMSTANCES.

The "devil is in the detail" and policy coverage/exclusions/etc vary significantly - even including different policies from the same company.

Even if you ultimately buy insurance directly from an insurance company, TALK TO A BROKER about what fits you and your situation best.

[beshears]

SFinVA, I agree with you, I don't ever plan to take out Travel Guard again as yet.  I just hope the insurance I took out, never used because of the cancellation of the cruise because of the virus, I was told I should be able to use it on my next cruise.  I have not booked it as yet, as I'm waiting to see what this virus does.  Hopefully we can cruise next year!!!

 

[Flatbush Flyer]

1 hour ago, beshears said:

SFinVA, I agree with you, I don't ever plan to take out Travel Guard again as yet.  I just hope the insurance I took out, never used because of the cancellation of the cruise because of the virus, I was told I should be able to use it on my next cruise.  I have not booked it as yet, as I'm waiting to see what this virus does.  Hopefully we can cruise next year!!!

 

For many companies, you'll need to request transferring the policy BEFORE the original trip would've begun.

[Babr]

One could make the case that not using (filing a claim) on medical or car insurance is not the same as not using travel insurance for a cruise cancelled by the cruise line.

 

Medical and car insurance are still covering the risk of your having an illness or accident throughout the policy period whether you do or not. The travel insurance was covering only the risk cancellation (not the other portions of the policy that take effect once travel begins) up until the cruise line cancelled the trip. They were never at risk for trip delay, trip interruption, medical, evacuation, and various coverages that apply only when travel begins. 
 

At least, perhaps, a pro-rated return of premiun?

[Flatbush Flyer]

11 minutes ago, Babr said:

.....Medical and car insurance are still covering the risk of your having an illness or accident throughout the policy period whether you do or not. The travel insurance was covering only the risk cancellation (not the other portions of the policy that take effect once travel begins) up until the cruise line cancelled the trip. They were never at risk for trip delay, trip interruption, medical, evacuation, and various coverages that apply only when travel begins. 

Other than medical during the cruise, the other big coverage item is/was the trip cancellation risk (for covered reasons like medical) during the pre-cruise period since the policy was purchased. That coverage exists for the entire policy period. That the insurer would then fully refund or credit the policy for a cancelled cruise is definitely a courtesy they owe no one.

[Babr]

I’m not sure I understand your definition of cancellation. I thought cancellation was before the trip started as defined by effective date in the policy. The first day of travel defines the effective date for the rest of the coverages. Once you are on your way, it is not considered cancellation anymore. Problems that would cause you to cease travel are considered trip delay or trip interruption. As I understand it, cancellation coverage ends once you depart from home. 

 

You were covered for cancellation from date of purchase up until the cruise line cancelled. Since the cruise line offered compensation in the form of a credit or refund, you suffered no loss; hence, the insurance company had no responsibility to reimburse you for the cost of the trip, and they never bore the risk of covering actual travel.

Edited June 29, 2020 by Babr

[rindybar]

2 hours ago, Babr said:

I’m not sure I understand your definition of cancellation. I thought cancellation was before the trip started as defined by effective date in the policy. The first day of travel defines the effective date for the rest of the coverages. Once you are on your way, it is not considered cancellation anymore. Problems that would cause you to cease travel are considered trip delay or trip interruption. As I understand it, cancellation coverage ends once you depart from home. 

 

You were covered for cancellation from date of purchase up until the cruise line cancelled. Since the cruise line offered compensation in the form of a credit or refund, you suffered no loss; hence, the insurance company had no responsibility to reimburse you for the cost of the trip, and they never bore the risk of covering actual travel.

I beg to differ with you, I'm out almost $1,000.00. I read the policy over and over it said it would refund money in case of a quarantine.  I did get a full refund today.

[Babr]

4 minutes ago, rindybar said:

I beg to differ with you, I'm out almost $1,000.00. I read the policy over and over it said it would refund money in case of a quarantine.  I did get a full refund today.

Which part are you disagreeing with?  I think we are on the same side. I was saying there is a case for refunds since the insurance company had little risk.

 

How are you out $1000 if you got a refund?

[beshears]

Ridybar, so you got a full refund back from taking out insurance coverage?  What company did you take it out with, just curious?

[TinCan782]

Got my insurance premium 100% credited back to my credit card a couple of days ago for the cruise I was supposed to be on right now! Allianz acknowledged, via email last week, my cancellation request I made a couple of weeks ago.

[beshears]

I "guess" I could request from the insurance company I took out the coverage, to put the money back on my credit card.  I was told  that I could use this money to apply to the next cruise I had planned on taking out on the 7 of us.  I wanted to do the cruise next year, but with the virus, I have no clue if this will be possible.  Maybe I should contact the insurance company and see what they will say, as I have not spoken to them directly, but someone that works for them told me I could apply the money I put out to be put on on my next cruise.

[Babr]

43 minutes ago, beshears said:

I "guess" I could request from the insurance company I took out the coverage, to put the money back on my credit card.  I was told  that I could use this money to apply to the next cruise I had planned on taking out on the 7 of us.  I wanted to do the cruise next year, but with the virus, I have no clue if this will be possible.  Maybe I should contact the insurance company and see what they will say, as I have not spoken to them directly, but someone that works for them told me I could apply the money I put out to be put on on my next cruise.

It is not unusual for an insurance company to allow you to apply coverage from a cancelled cruise to a second one at a later date. The problem, as you have identified, is the uncertainty of cruising in the foreseeable future.  Then what?

 

Some companies have given cash refunds for policies, but I don’t think it is typical rather an accommodation in the face of extraordinary circumstances; namely mass cancellations by cruise lines in the face of a pandemic.

Contact the company to see what they will do for you.

 

 

[beshears]

Yes Babr, once the 4th of July activities are over for me that is what I plan to do to contact the insurance company and see what they say.

[tommyrk]

On 3/23/2020 at 6:40 PM, rindybar said:

Did anyone purchase travel insurance, then have the cruise line cancel the trip? What happened to the money you paid towards the insurance?

Thanks

I have called the cruise line several times and was told that it would be refunded to me. When I called to find our why the credit was not issued at the same time as my taxes and fees, I was told that it was not refundable. Fool me once shame on you, fool me twice, shame on me. I won't be buying it again!

[TinCan782]

5 hours ago, tommyrk said:

I have called the cruise line several times and was told that it would be refunded to me. When I called to find our why the credit was not issued at the same time as my taxes and fees, I was told that it was not refundable. Fool me once shame on you, fool me twice, shame on me. I won't be buying it again!

I got a 100% premium refund from Allianz...see my post from two days ago above (#65).

[roothy123]

I hope it's OK to jump in here and ask about my situation.  I'm thinking of booking a cruise that is scheduled to go in August 2021.  I'm hoping there will be a vaccine by then and the cruise (and I) will be a go.  If not, I can cancel the cruise for any reason (cruise line policy) as long as it's more than two weeks before departure.  I would get a credit, which is fine.  I normally buy travel insurance from a third party site (not through the cruise line) when I make a deposit on the cruise so that my spouse's pre-existing condition is covered.  But what is likely to happen if the cruise is a go, but more than 2 weeks prior to sail date, i decide not to go?   (Let's say no non-refundable costs have been incurred other than price of cruise and air.)  The cruise line will allow me to cancel and give me a credit for the cruise, but is it likely the insurance company would not let me transfer what I paid for the insurance policy because my reason for canceling doesn't meet their requirements?  (I would be the one to cancel the cruise, not the cruise line.  Presumably this would be due to fear that it is still not safe to travel).

 

So my questions are: 

1.  What is likely to happen - possibility of moving insurance to a new booking?  (I realize that it obviously DOES depend upon the company.)

2.  If we're willing to forego insurance which covers trip interruption, baggage, etc., is there any kind of medical insurance only that we could purchase for this trip?

  

[iamtrustworthy]

30 minutes ago, roothy123 said:

I hope it's OK to jump in here and ask about my situation.  I'm thinking of booking a cruise that is scheduled to go in August 2021.  I'm hoping there will be a vaccine by then and the cruise (and I) will be a go.  If not, I can cancel the cruise for any reason (cruise line policy) as long as it's more than two weeks before departure.  I would get a credit, which is fine.  I normally buy travel insurance from a third party site (not through the cruise line) when I make a deposit on the cruise so that my spouse's pre-existing condition is covered.  But what is likely to happen if the cruise is a go, but more than 2 weeks prior to sail date, i decide not to go?   (Let's say no non-refundable costs have been incurred other than price of cruise and air.)  The cruise line will allow me to cancel and give me a credit for the cruise, but is it likely the insurance company would not let me transfer what I paid for the insurance policy because my reason for canceling doesn't meet their requirements?  (I would be the one to cancel the cruise, not the cruise line.  Presumably this would be due to fear that it is still not safe to travel).

 

So my questions are: 

1.  What is likely to happen - possibility of moving insurance to a new booking?  (I realize that it obviously DOES depend upon the company.)

2.  If we're willing to forego insurance which covers trip interruption, baggage, etc., is there any kind of medical insurance only that we could purchase for this trip?

  

Hi roothy123,

 

In your example, will you have both the cruise line's plan and a 3rd party trip cancellation plan?

 

I'm asking because your statement "The cruise line will allow me to cancel and give me a credit for the cruise" sounds like you woul have to have the cruise line's plan.

 

I can advise you more accurately once I know your answer.

 

Steve Dasseos

[roothy123]

43 minutes ago, iamtrustworthy said:

Hi roothy123,

 

In your example, will you have both the cruise line's plan and a 3rd party trip cancellation plan?

 

I'm asking because your statement "The cruise line will allow me to cancel and give me a credit for the cruise" sounds like you woul have to have the cruise line's plan.

 

I can advise you more accurately once I know your answer.

 

Steve Dasseos

I think the answer is yes, but I would need to speak with my TA or Oceania to make sure absolutely sure that their traveler protection promise is afforded to everyone, regardless of whether a traveler books insurance through them or not.  (We don't.)  The policy is as follows: 

 

"Guests and Travel Partners can now have total peace of mind knowing that should they need to cancel, for any reason, they will not lose a dollar. Guests who have paid in full may cancel up to 15 days prior to their departure and receive a Future Cruise Credit equal to 100% of the cruise fare paid........

 

PROGRAM APPLICABILITY AND CONDITIONS:

 

NO-PENALTY CANCELLATIONS

• Once paid in full, cancel for any reason up to 15 days prior to departure and receive a Future Cruise Credit equal to 100% of the cruise fare paid.
• Valid for all reservations made between August 1 and August 31, 2020, for scheduled voyages departing on or before October 31, 2021.
• Future Cruise Credit is valid for redemption for one year from date of issue for travel departing no later than December 31, 2022..........".        [End of excerpt from quote]                         

This special cancellation policy would help in the event that things aren't settled enough by the end of July to make us feel comfortable enough to travel, and we'd prefer to cancel and take a later cruise.  But of course once it's later than 15 days pre-cruise, we wouldn't have insurance to cover us if something happens - medical, trip interruption, test positive for Covid and not allowed to board ship, etc. 

 

 

[Babr]

19 hours ago, roothy123 said:

I think the answer is yes, but I would need to speak with my TA or Oceania to make sure absolutely sure that their traveler protection promise is afforded to everyone, regardless of whether a traveler books insurance through them or not.  (We don't.)  The policy is as follows: 

 

"Guests and Travel Partners can now have total peace of mind knowing that should they need to cancel, for any reason, they will not lose a dollar. Guests who have paid in full may cancel up to 15 days prior to their departure and receive a Future Cruise Credit equal to 100% of the cruise fare paid........

 

PROGRAM APPLICABILITY AND CONDITIONS:

 

NO-PENALTY CANCELLATIONS

• Once paid in full, cancel for any reason up to 15 days prior to departure and receive a Future Cruise Credit equal to 100% of the cruise fare paid.
• Valid for all reservations made between August 1 and August 31, 2020, for scheduled voyages departing on or before October 31, 2021.
• Future Cruise Credit is valid for redemption for one year from date of issue for travel departing no later than December 31, 2022..........".        [End of excerpt from quote]                         

This special cancellation policy would help in the event that things aren't settled enough by the end of July to make us feel comfortable enough to travel, and we'd prefer to cancel and take a later cruise.  But of course once it's later than 15 days pre-cruise, we wouldn't have insurance to cover us if something happens - medical, trip interruption, test positive for Covid and not allowed to board ship, etc. 

 

 

Obviously,  Steve is the one who can answer this authoritatively, but I’m guessing third-party insurance would not transfer to another cruise if you cancel for a non-covered reason. Maybe it would in this case since you would not be filing a claim because you’d be compensated by others. 

 

It sounds to me as if the traveler protection policy is independent of any insurance sold by the cruise line. It really isn’t insurance, instead an incentive offered by the cruise line. You could still get third-party for your other needs, either comprehensive or medical only.

 

Without a comprehensive policy,  you are leaving yourself vulnerable if you have to cancel for a covered reason. Yes, the cruise line will give you a voucher, but you could get cash back for all covered expenses with a comprehensive. You have no cancellation protection at all after the 15-day cut off. That is a fairly short period to risk, but a last minute emergency could leave you holding the bag. A medical only would cover you once you are on your way. It won’t do any good if you can’t go.

 

If you are willing to accept those conditions, then I guess it depends on the cost difference between a comprehensive and a medical only, but I think you’d be left with the same question. Will either one transfer to another cruise if you choose to cancel because of fear of Covid?

[iamtrustworthy]

On 8/24/2020 at 6:58 PM, roothy123 said:

I think the answer is yes, but I would need to speak with my TA or Oceania to make sure absolutely sure that their traveler protection promise is afforded to everyone, regardless of whether a traveler books insurance through them or not.

Hi roothy123,

 

Will you let me know what exactly you find out from your TA or Oceania?

 

Steve Dasseos