How to Know If You Should Buy Trip Cancellation Insurance for Your Cruise


As with any insurance policy, familiarizing yourself with the details of the insurance coverage can help you make a decision on whether to buy trip cancellation insurance for your cruise.

Cancellation insurance usually costs about 5 to 7 percent of the vacation price, and generally offers more protection than a cancellation waiver, according to the Insurance Information Institute.

Depending on the specific policy, trip cancellation insurance may help to protect you if the cruise line goes bankrupt — or if you become ill or suffer a death in the family and have to cancel your cruise.


How to Know If You Should Buy Trip Cancellation Insurance for Your Cruise

Trip Cancellation Insurance

1. Examine the cruise’s refund policy and make sure to get it in writing. For example, if the cruise is cancelled due to a hurricane or other natural disaster you may be entitled to a refund.

2. Compare two or three policies by reputable insurance agencies and consider the cost of the additional protection compared to the less expensive option of a cruise cancellation waiver. Although a cancellation waiver from an established cruise company may offer some protection, it may not apply to a cancellation shortly before your departure date.

3. Weigh the cost of the cruise cancellation insurance against the potential loss if you have to cancel the trip for a covered reason. The types of medical and mortal events that trip cancellation policies protect against are things that often occur without warning.


Tips & Warnings

  • Examine the policy’s exclusions and restrictions carefully. For example, canceling a cruise to attend a wedding or other event will probably not be covered. Certain policies also provide reimbursement for an unused portion of the cruise if you become ill or injured during the trip. Obtain your travel insurance through your own insurance agent or a reputable insurance agency. Choose the policy with the best coverage and fewest restrictions if you opt to buy trip cancellation insurance. The extra investment in your cruise may be worth it for additional peace of mind.
  • Cancellation waivers offered by cruise operators aren’t regulated by the state department of insurance. You may not be able to collect on a waiver if a cruise operator goes bankrupt or has other difficulties.


How to File a Trip Cancellation Insurance Claim

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