After we book the next vacation or cruise, we always ask ourselves if we should purchase the travel insurance to go with it. I know this is a no-no amongst travel agent, but typically we decide to not buy the trip insurance. Generally, our cruises have not been so expensive that we have felt it necessary to purchase the insurance for it. But, now not only are our trips becoming more expensive as we are branching out from the usually Caribbean cruise, but also as our family ages, especially our extended family, we find that having travel insurance to be more and more desirable.
Now, we are wondering what kind of travel insurance should we purchase. Is it wise to get it through the cruise line? Should we instead purchase it from the insurance company directly? What about annual insurance? Does it make sense for us to just buy an annual plan? After researching everything out there, I believe that I have found the answers to these questions.
If you are not generally going to purchase travel insurance for every vacation, then what is a good rule of thumb for when it is a good idea to go ahead and purchase it. If you do not have any external forces at play, such as elderly parents or a tricky work schedule, then I typically say that any vacation costing $8000 or more requires giving the purchase of travel insurance a serious thought. There are definitely some other factors to consider as well.
Other than protecting your investment of the price of the cruise, travel insurance can also cover flight change costs, some unexpected hotel stays, treatment for pre-existing medical conditions, coverage of medical care, travel during hurricane season, and loss or damaged luggage expenses. If traveling for longer than a 4 or 5 night cruise, if traveling with elderly family members or with young kids or if you are traveling with expensive items that would be expensive to replace, then purchasing travel insurance would be a good idea.
When is it smart to purchase travel insurance through the cruise line and when is it better to purchase it directly from travel insurance company? Purchasing it from the cruise line is not only really easy and convenient but also it can be perfect for offering basic coverage. On the other hand, cruise line offered trip insurance usually offers weaker medical coverage, is less customizable, and often only covers the cruise and not flight changes and unexpected hotel stays. If you travel often, purchasing travel insurance directly from the company allows for greater ease with handling claims and offers broader coverage across the board.
Purchasing travel insurance through the cruise line means that you must use whatever company that the cruise line works with. But, if you are purchasing it from the company itself then you have a handful of options to choose from:
Allianz Travel Insurance- This company is the most well known, has great customer service, and works great for frequent travelers. The downsides are that it is not always the cheapest and that CFAR (Cancel For Any Reason) upgrades can get even more expensive.
Seven Corners- Seven Corners is very popular amongst avid cruisers as they are known for offering cruise-specific benefits. They offer some great medical benefits and are especially great for international travelers. They don’t have the most user-friendly website, and processing claims isn’t always that simple.
IMG Global- IMG is known for being especially helpful for travelers needing medical coverage. This company is best for longer trips or for older travelers. IMG is not known for being very beginner friendly and their CFAR coverage isn’t always the best.
Geo Blue Travel Insurance- Geo Blue is known for having a great international medical network to rely on. This company is great for travelers with medical concerns, but they are not known for offering much in the way of trip cancellation.
What about annual insurance? Instead of purchasing travel insurance for each individual vacation, you can instead purchase travel insurance that covers the entire year of travel. If you typically take more than 3 vacations a year, then annual insurance is a great option. Annual insurance often costs less than multiple single-trip plans and is great for spontaneous travel and can be very convenient. The downsides to annual insurance are that it focuses more on medical coverage and less on trip cancellation. It also may not fully cover the more expensive, luxury trips.
One last thing to consider is that there are credit cards that come with a basic level of travel insurance. Cards such as the Chase Sapphire Reserve or the American Express Platinum offer protections against trip delays or interruption, lost baggage or rental car coverage. So, if medical coverage is less of a concern, then grabbing one of these cards might be a great solution for you.
If your next trip is coming up and you are interested in finding that travel insurance plan that is right for you and your needs, I am happy to figure out which plan will work best.
Contact me today to plan that trip and feel more secure in your investment.