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Cruise Insurance - Buying From Insurance Company vs Cruise Line

Cruise Insurance - Buying From Insurance Company vs Cruise Line

Cruise insurance can be purchased from an independent insurance company or from cruise line.

Introduction

Cruise vacations have become increasingly popular. When you book your cruise travel, you are usually offered some type of a protection plan or a waiver plan by the cruise line operator or from the travel agent. While it might seem convenient to make one payment for the cruise and travel plan, it is advisable to purchase cruise insurance offered by an independent insurance company using a comparison web site such as insubuy.com for many reasons.

The fact is that travel protection plans offered by the cruise line operator may only provide limited coverage, and will likely have many restrictions compared to an independent travel insurance. It may not even be 100% travel insurance. Trip cancellation insurance is quite different from a Cancellation waiver often sold by cruise lines. Cancellation waivers have more restrictions and generally will not provide coverage if you need to cancel your trip just before your departure, the time when most people need coverage; or if you need to interrupt the trip after it has already begun. On the other hand, trip cancellation insurance can provide you coverage from the time of booking until you return back home from the trip.

Moreover, this should also be taken into consideration, would you buy homeowner's insurance from a builder? Car insurance from a car dealer? Of course not! So why would buy cruise insurance from a cruise operator or their travel agent? It is the best practice to purchase cruise travel insurance from a reputed independent broker like insubuy.com which offers several plans from different insurance companies. We offer you expert advice that you need every step of the way and we help you select the most suitable plan for your needs, rather than just giving you a one size fits all plan.

Cruise lines are in the vacation business and are certainly not experts in the insurance business. Cruise line insurance plans are typically over-priced for the coverage that's offered and even if they outsource the claims administration, getting the claim processed is usually difficult. Moreover, the policy language of such plans is written in a way that it will more likely benefit the cruise line more than it would benefit you.

Just like you should not purchase travel protection from a cruise line operator, you should also avoid purchasing it directly from a travel booking site as you will most likely run into similar limitations and restrictions.

Differences

The following comparison chart illustrates the differences between travel insurance plans offered by a travel insurance company and the travel protection plan or cancellation waiver offered by a cruise line operator company.

FeatureTravel InsuranceCruise Line Plan
Claim Payment

Actual money reimbursement made by check in U.S. Dollars.

It gives you the complete freedom to spend the money any way you like, including a vacation with any other provider at any time you wish.

Usually a voucher for partial credits (such as 50% or 75%) that have a limited validity (such as one year) and also comes with a number of other restrictions.

If you had to cancel your current cruise because you were seriously sick or a close relative passed away, you may not be able to or willing to go on a cruise in the near future. You may not want to go with the same cruise company or you may not want to go on the same route.

Independent travel arrangements

You can get coverage for all non-refundable pre-paid travel costs such as airline tickets purchased outside of the cruise line, tours, excursions and side trips.

You will get coverage only for the travel arrangements you purchased through the cruise line company. If you need to make a claim for any travel arrangements that you didn't make through the cruise such as an airline ticket costs, or additional stay in a hotel before or after the cruise, there will be no coverage. In other words, you are protected only for the cruise portion of your trip. If your flight is late and you miss your cruise, there is no coverage.

Emergency medical coverage

Covered up to $1,000,000 depending upon the travel insurance plan you purchase. Coverage may either be primary or secondary.

Covered. However, the limit may be much less, such as $10,000 to $25,000. Additionally, the cruise operator may ask you to leave the ship if their on-board medical facility cannot treat you. That would definitely incur additional expenses, as well as many inconveniences to you. Additionally, the coverage would be secondary.

Pre-existing medical conditions coverage

Usually included if the condition is stable for a certain duration such as 60 or 90 days, and you purchase the insurance plan within a short duration (ranging from 7 days to 30 days) following your initial trip deposit.

Usually excluded.

Bankruptcy or financial default

Usually included if you purchase the insurance plan within a short duration (ranging from 7 days to 30 days) following your initial trip deposit.

No coverage. If your cruise line goes bankrupt, you will not receive a refund.

Cancel for any reason coverage or Cancel for work reasons coverage

Available in many travel insurance plans as an option.

Unavailable.

Trip cancellation reasons

Broad range of reasons are eligible for trip cancellation.

In most cases, if the reason is not explicitly stated as covered in the policy, it is excluded. Usually, the list of covered reasons is very short and limited. Many reasons such as the birth of an immediate family member, cessation of carrier service for 24 hours, legal separation or divorce, foreign or domestic terrorism are excluded.

Trip cancellation - Terrorism or political unrest.

Usually covered.

Usually excluded.

Trip cancellation - Jury duty, work obligations, school year extensions

Usually covered.

Usually excluded.

Trip cancellation duration

You can be covered for trip cancellation until you depart for your trip, except in case of cancel for any reason.

Trip cancellation coverage usually ends 1-3 days prior to your scheduled departure date. Therefore, any last minute cancellations would be excluded.

Government regulations

Yes. Travel insurance plans are regulated by a State Department of Insurance.

No. In the case of any dispute, you will have to file a lawsuit which is very expensive, time consuming and stressful. In most cases, it may not be worth it looking at the amount of money in dispute. That leaves you with no recourse.

Conclusion

Always purchase cruise insurance by an independent travel insurance company, and through a comparison web site such as insubuy.com.

Did you know?

Prices are regulated by law.

You cannot find a lower price anywhere for the same product.

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Why purchase insurance from Insubuy®?

Same Price. Better Service.®

There are many advantages in purchasing from Insubuy® and no disadvantages.

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Visiting USA?

Healthcare costs are very high in the U.S.

Buy U.S. based visitors insurance and enjoy your trip.

Learn More

Traveling abroad?

Did you know that your insurance may not cover you abroad or that it may only provide limited coverage?

Purchase travel medical insurance that includes emergency medical evacuation.

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New immigrant to USA?

You would not be eligible to enroll in Medicare for the first 5 years.

Purchase new immigrant medical insurance to bridge the gap.

Learn More

Going on a vacation?

You could lose your non-refundable trip costs if you had to cancel your trip.

Buy a trip cancellation insurance package plan and be worry-free.

Learn More

Are you an exchange visitor to USA?

The U.S. Department of State requires all J visa holders to purchase compliant insurance.

Buy J visa medical insurance to meet your requirements.

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Traveling to Europe?

Schengen countries require most non-US citizens to purchase Schengen visa insurance.

Make an instant purchase online and get instant visa letter.

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Traveling frequently throughout the year?

You don’t need to purchase travel insurance for every trip.

Purchase annual multi trip travel insurance for your travels.

Learn More

International student in the U.S.?

Most schools require international students to purchase health insurance.

Purchase international student health insurance that meets most school requirements.

Learn More

To continue with the application please scroll down to confirm this notice

CALIFORNIA RESIDENTS SPECIAL NOTICE

1. THE INSURANCE POLICY THAT YOU ARE APPLYING TO PURCHASE IS BEING ISSUED BY AN INSURER THAT IS NOT LICENSED BY THE STATE OF CALIFORNIA. THESE COMPANIES ARE CALLED "NONADMITTED" OR "SURPLUS LINE" INSURERS.

2. THE INSURER IS NOT SUBJECT TO THE FINANCIAL SOLVENCY REGULATION AND ENFORCEMENT THAT APPLY TO CALIFORNIA LICENSED INSURERS.

3. THE INSURER DOES NOT PARTICIPATE IN ANY OF THE INSURANCE GUARANTEE FUNDS CREATED BY CALIFORNIA LAW. THEREFORE, THESE FUNDS WILL NOT PAY YOUR CLAIMS OR PROTECT YOUR ASSETS IF THE INSURER BECOMES INSOLVENT AND IS UNABLE TO MAKE PAYMENTS AS PROMISED.

4. THE INSURER SHOULD BE LICENSED EITHER AS A FOREIGN INSURER IN ANOTHER STATE IN THE UNITED STATES OR AS A NON-UNITED STATES (ALIEN) INSURER. YOU SHOULD ASK QUESTIONS OF YOUR INSURANCE AGENT, BROKER, OR “SURPLUS LINE” BROKER OR CONTACT THE CALIFORNIA DEPARTMENT OF INSURANCE AT THE FOLLOWING TOLL-FREE TELEPHONE NUMBER 1-800-927-4357. ASK WHETHER OR NOT THE INSURER IS LICENSED AS A FOREIGN OR NON-UNITED STATES (ALIEN) INSURER AND FOR ADDITIONAL INFORMATION ABOUT THE INSURER. YOU MAY ALSO CONTACT THE NAIC’S INTERNET WEB SITE AT WWW.NAIC.ORG.

5. FOREIGN INSURERS SHOULD BE LICENSED BY A STATE IN THE UNITED STATES AND YOU MAY CONTACT THAT STATE’S DEPARTMENT OF INSURANCE TO OBTAIN MORE INFORMATION ABOUT THAT INSURER.

6. FOR NON-UNITED STATES (ALIEN) INSURERS, THE INSURER SHOULD BE LICENSED BY A COUNTRY OUTSIDE OF THE UNITED STATES AND SHOULD BE ON THE NAIC’S INTERNATIONAL INSURERS DEPARTMENT (IID) LISTING OF APPROVED NONADMITTED NON-UNITED STATES INSURERS. ASK YOUR AGENT, BROKER, OR “SURPLUS LINE” BROKER TO OBTAIN MORE INFORMATION ABOUT THAT INSURER.

7. CALIFORNIA MAINTAINS A LIST OF APPROVED SURPLUS LINE INSURERS. ASK YOUR AGENT OR BROKER IF THE INSURER IS ON THAT LIST, OR VIEW THAT LIST AT THE INTERNET WEB SITE OF THE CALIFORNIA DEPARTMENT OF INSURANCE: www.insurance.ca.gov.

8. IF YOU, AS THE APPLICANT, REQUIRED THAT THE INSURANCE POLICY YOU HAVE PURCHASED BE BOUND IMMEDIATELY, EITHER BECAUSE EXISTING COVERAGE WAS GOING TO LAPSE WITHIN TWO BUSINESS DAYS OR BECAUSE YOU WERE REQUIRED TO HAVE COVERAGE WITHIN TWO BUSINESS DAYS, AND YOU DID NOT RECEIVE THIS DISCLOSURE FORM AND A REQUEST FOR YOUR SIGNATURE UNTIL AFTER COVERAGE BECAME EFFECTIVE, YOU HAVE THE RIGHT TO CANCEL THIS POLICY WITHIN FIVE DAYS OF RECEIVING THIS DISCLOSURE. IF YOU CANCEL COVERAGE, THE PREMIUM WILL BE PRORATED AND ANY BROKER’S FEE CHARGED FOR THIS INSURANCE WILL BE RETURNED TO YOU.

07/11
LSW1146D

Cuba Notice

Travel to Cuba remains subject to restrictions imposed by U.S. sanctions, administered by the US Treasury. Only those who qualify for travel authorized under US Treasury's regulations and who comply with the terms of such authorization can legally travel to Cuba. Individuals traveling to Cuba must meet the following criteria in order to qualify for travel authorized under one of the general licenses outlined below:

Criteria for travel authorized by the US Treasury

If you have read and agree to the terms of both Notices: California and Cuba, please click the continue button if you wish to complete the application process. Otherwise, please click cancel to abort the application process.

To continue with the application please scroll down to confirm this notice

CALIFORNIA RESIDENTS SPECIAL NOTICE

1. THE INSURANCE POLICY THAT YOU ARE APPLYING TO PURCHASE IS BEING ISSUED BY AN INSURER THAT IS NOT LICENSED BY THE STATE OF CALIFORNIA. THESE COMPANIES ARE CALLED "NONADMITTED" OR "SURPLUS LINE" INSURERS.

2. THE INSURER IS NOT SUBJECT TO THE FINANCIAL SOLVENCY REGULATION AND ENFORCEMENT THAT APPLY TO CALIFORNIA LICENSED INSURERS.

3. THE INSURER DOES NOT PARTICIPATE IN ANY OF THE INSURANCE GUARANTEE FUNDS CREATED BY CALIFORNIA LAW. THEREFORE, THESE FUNDS WILL NOT PAY YOUR CLAIMS OR PROTECT YOUR ASSETS IF THE INSURER BECOMES INSOLVENT AND IS UNABLE TO MAKE PAYMENTS AS PROMISED.

4. THE INSURER SHOULD BE LICENSED EITHER AS A FOREIGN INSURER IN ANOTHER STATE IN THE UNITED STATES OR AS A NON-UNITED STATES (ALIEN) INSURER. YOU SHOULD ASK QUESTIONS OF YOUR INSURANCE AGENT, BROKER, OR “SURPLUS LINE” BROKER OR CONTACT THE CALIFORNIA DEPARTMENT OF INSURANCE AT THE FOLLOWING TOLL-FREE TELEPHONE NUMBER 1-800-927-4357. ASK WHETHER OR NOT THE INSURER IS LICENSED AS A FOREIGN OR NON-UNITED STATES (ALIEN) INSURER AND FOR ADDITIONAL INFORMATION ABOUT THE INSURER. YOU MAY ALSO CONTACT THE NAIC’S INTERNET WEB SITE AT WWW.NAIC.ORG.

5. FOREIGN INSURERS SHOULD BE LICENSED BY A STATE IN THE UNITED STATES AND YOU MAY CONTACT THAT STATE’S DEPARTMENT OF INSURANCE TO OBTAIN MORE INFORMATION ABOUT THAT INSURER.

6. FOR NON-UNITED STATES (ALIEN) INSURERS, THE INSURER SHOULD BE LICENSED BY A COUNTRY OUTSIDE OF THE UNITED STATES AND SHOULD BE ON THE NAIC’S INTERNATIONAL INSURERS DEPARTMENT (IID) LISTING OF APPROVED NONADMITTED NON-UNITED STATES INSURERS. ASK YOUR AGENT, BROKER, OR “SURPLUS LINE” BROKER TO OBTAIN MORE INFORMATION ABOUT THAT INSURER.

7. CALIFORNIA MAINTAINS A LIST OF APPROVED SURPLUS LINE INSURERS. ASK YOUR AGENT OR BROKER IF THE INSURER IS ON THAT LIST, OR VIEW THAT LIST AT THE INTERNET WEB SITE OF THE CALIFORNIA DEPARTMENT OF INSURANCE: www.insurance.ca.gov.

8. IF YOU, AS THE APPLICANT, REQUIRED THAT THE INSURANCE POLICY YOU HAVE PURCHASED BE BOUND IMMEDIATELY, EITHER BECAUSE EXISTING COVERAGE WAS GOING TO LAPSE WITHIN TWO BUSINESS DAYS OR BECAUSE YOU WERE REQUIRED TO HAVE COVERAGE WITHIN TWO BUSINESS DAYS, AND YOU DID NOT RECEIVE THIS DISCLOSURE FORM AND A REQUEST FOR YOUR SIGNATURE UNTIL AFTER COVERAGE BECAME EFFECTIVE, YOU HAVE THE RIGHT TO CANCEL THIS POLICY WITHIN FIVE DAYS OF RECEIVING THIS DISCLOSURE. IF YOU CANCEL COVERAGE, THE PREMIUM WILL BE PRORATED AND ANY BROKER’S FEE CHARGED FOR THIS INSURANCE WILL BE RETURNED TO YOU.

07/11
LSW1146D

If you have read and agreed to the terms of this notice and wish to continue, please click the continue button. Otherwise, please click cancel to abort the application process.

Cuba Notice

Travel to Cuba remains subject to restrictions imposed by U.S. sanctions, administered by the US Treasury. Only those who qualify for travel authorized under US Treasury's regulations and who comply with the terms of such authorization can legally travel to Cuba. Individuals traveling to Cuba must meet the following criteria in order to qualify for travel authorized under one of the general licenses outlined below:

Criteria for travel authorized by the US Treasury

I certify that I have read the above and that all individuals applying for coverage qualify for travel authorized under one of the general licenses per US Treasury regulations.

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