Traditional Travel Insurance vs Cruise Insurance

Travel Insurance vs Cruise Insurance

The cruise industry has evolved vastly over the last decade and now caters to a wide variety of passengers and demographics. Gone are the days of cruise ships full of retirees making their way into warm tropical islands. Today you can book a cruise that can take you from the North pole to the south with a wide range of people from all age groups. Activities onboard ships can be almost overwhelming and include bars, swimming pools, dining and so much more. That is why it is no surprise that more and more people are purchasing cruise tickets. However, with the growth in the industry, problems have started to appear more often. Passengers have had to face cancellations or rescheduling because of mechanical issues with ships, bad weather, or as we see in the news today, disease and epidemics. Most travelers understand the risks and make the prudent decision of purchasing cruise insurance to protect their investment.

Cruise operators realize that passengers like trip coverage and have started offering online tools that make buying insurance easy when you buy a ticket. This is the path of least resistance for most people but is it the best choice?

More Options

When buying travel insurance from a cruise company, usually you have one choice. This is usually the third party that has been contracted to underwrite the policies. What this means is that the passenger really has no choice but what the cruise operator is offering if they buy through their website. However, with independent travel insurance, you have an incredible number of choices and plans to select from. You can check the reputation of providers, the benefits on offer, and several different factors to get the plan that suits your needs.

Trip Cancellation Reason

Travel insurance offers reimbursements if you cancel your trip for a set of predefined reasons. In most cases, you cannot just cancel a trip and expect the insurance company to payout. These cancellation reasons may include things like getting sick or a death. Cruise insurance will in most cases have fewer reasons when compared to traditional travel insurance. This means that regular travel insurance gives you more protection when compared to cruise insurance policies.

Coverage Scope

Trip insurance that is bought through a cruise line will in many cases only cover the tickets and travel arrangements bought through the cruise operator. If you have airline tickets that you purchased to arrive at the cruise departure point, that will not be covered. Independent travel insurance gives you the ability to cover all travel associated with your trip. This once again gives you better coverage against exposure to risks.

Higher Compensation & Lower Costs

Cruise lines are experts at running their businesses. Travel insurance is not their main focus and is most often being offered through a third party. It may be convenient to purchase them with just one click but the associated expense may be higher. Traditional insurance providers can offer better deals and rates when compared to cruise insurance. They can also offer higher compensation and benefits. This means if you would like more coverage for your luggage you can get it as opposed to cruise lines which will have lower limits.

Government Regulations

Travel insurance plans are under the State Department of Insurance and must abide by the rules and regulations in place for that state. This gives an added layer of security for people purchasing from independent travel insurance providers. The rights of the consumer and the insurance company are protected through these regulations making transactions and reimbursements easier and fair.

What it boils down to is that it may be slightly more convenient to purchase cruise insurance, but if you spend a little more time and buy independent travel insurance, you can get a lot more. This includes better pricing, better coverage, more options, and the knowledge that you are buying insurance from experts in travel coverage.

Looking for the right type of cruise insurance?

By Administrator at 4 Apr 2020, 00:02 AM