A cruise without luggage...help?

In article , Cruzinsure
wrote:

Travelguard now has a Pack 'n Go package that only covers trip
cancellation up to $1000 and delay up to $500. But it has the full
medical and medical transportation in it. That is the part that most
interests me.

Actually, the Pack 'N Go policy has NO trip cancellation coverage. It does
have
$1000 for trip interruption but that's a whole different coverage. If you have
to cancel your trip prior to departure you would not be able to file any claim
for cancellation penalties. If you have to cut short your trip for a covered
reason post-departure you could file a claim for up to $1000 of unused
pre-paid
trip arrangements.

For those that do not need trip cancellation coverage but want the other
benefits it's not a bad way to go. It's priced a little differently that most
policies -- by the traveler's age and trip length (0 - 7 days, 8 - 15 days,
etc.) instead of by age and trip cost.

By the way, the tough part about this pricing system for cruisers is that for
a
seven night cruise they have to pay the premium for an 8 - 15 day trip since
both the departure and return days are counted as travel days. So, a 60 year
old traveler going on a cruise from 12/10 thru 12/17 pays $44 instead of $27.
Ouch. But still not a horrible deal.

According to Travelguard's own website, plugging in start date and end
date of the cruise, the figure comes out at $27 for a 60 year old.

Lloyd

Remember that travel insurance companies are NOT your friend. They are
in business to collect premiums, not pay out claims. You need to read
the fine print very carefully; you can be sure that they will if you
file a claim.

For example, for trip cancellation, some companies require that you
cover the ENTIRE cost of a trip even if some of it is refundable (such
as business class airfare).

If you end up insuring a $5,000 trip for $4,950, they may pay you
nothing on trip cancellation. And they will ask for the invoices.

Also, some one pay for weather or other flight delays or delays that are
less than 24 hours.

Again, READ THE CONTRACT before you buy. It is probably on the web.

p

You need to read
the fine print very carefully; you can be sure that they will if you
file a claim.

Very true.


For example, for trip cancellation, some companies require that you
cover the ENTIRE cost of a trip even if some of it is refundable (such
as business class airfare).

I can't think of any. Can you cite an example?

If you end up insuring a $5,000 trip for $4,950, they may pay you
nothing on trip cancellation. And they will ask for the invoices.

Again, I can'y think of any major insurer that requires that you insure every
dollar of your trip. I think you may be thinking of their pre-existing
condition waiver requirements. For the major plans, in order to get
pre-existing conditions covered you have to insure the total of your pre-paid,
non-refundable trip arrangements. If you aren't worried about pre-existing
medical conditions you can insure as little or as much of your trip as you feel
comfortable with. One, CSA, will cover pre-ex conditions regardless of the trip
amount you cover. And, yes, they always ask for invoices.

Again, READ THE CONTRACT before you buy. It is probably on the web.

Always excellent advice.

(Cruzinsure) wrote:

For the major plans, in order to get
pre-existing conditions covered you have to insure the total of your pre-paid,
non-refundable trip arrangements.


Would you mind sharing your expertise one more time and confirm or challenge
my practice on this? Your statement excerpted above is the basis for all
of my trip insurance calculations, regardless of pre-ex concerns. In other
words, I don't pay to insure those anticipated trip costs that I reasonably
believe will not yet be expended and/or can be recouped in the event of a
cancellation or interruption. Instead, I calculate the amount of insurance
needed on the total amount of, to use your words, "pre-paid, non-refundable
trip arrangements."

TIA.

Diana Ball
Near Houston, TX
http://www.dianaball.net

NCL Sea – W Carib - Holidays 99
RCI Explorer – E Carib - Holidays 00
RCI Rhapsody – W Carib - Holidays 01 (back-to-back)
NCL Star – Hawaii - June 02
Dawn Princess – Alaska - July 02
Star Princess – Mex Riviera - Holidays 02
RCI Serenade – Transatlantic – Maiden 08/04/03
RCI Mariner – E Carib - Holidays 03

I don't pay to insure those anticipated trip costs that I reasonably
believe will not yet be expended and/or can be recouped in the event of a
cancellation or interruption. Instead, I calculate the amount of insurance
needed on the total amount of, to use your words, "pre-paid, non-refundable
trip arrangements."

What you're doing is exactly right. In general, what you want to insure is the
total amount you would be forfeiting to penalties should you have to cancel at
the last minute. (Of course, absent any pre-existing medical condition concerns
you can usually even insure less than that total amount).

Many people over-insure by coming up with a total amount that includes costs
that are fully or partially refundable or which are not pre-paid. For example:

Say you're spending 10 nights at a luxury resort that will cost you $300/night.
If everything goes as planned your total lodging expense will be $3000. But
that might not be the amount you want to insure.

Perhaps if you cancel the trip at the last minute the resort is only going to
charge you for two nights as a penalty. That should be the amount you insure
since that's all you could file a claim for anyway.

However, there are exceptions to this. Say, for example, you need to pay the
resort the full $3000 30 days prior to your arrival. Even if the cancellation
penalties are as above, they've still got your money. If they go belly-up
before you arrive you're going to be out the full $3000. If you insure the trip
for the $600 and the policy covers for this type of financial default you'll
only be able to claim the $600 and will be out $2400. So, if you pre-pay and
you have any question about the financial soundness of the travel supplier you
may want to cover the full amount that they're holding. The alternative to this
is to check with your credit card company and see if you're covered for this
possibility anyway.

Another thing to not insure is a non-pre-paid expense. For example, when you
get to your destination you're going to book a tour that will cost $500. Since
if you cancel the trip you won't be out this amount you should not include it
in your insured trip cost. We see MANY people including this sort of thing in
their coverage and overpaying their premiums. Again, if there's no risk of loss
don't include it.

Rule of thumb: Do not insure more than the total of your pre-paid,
non-refundable trip costs. If in doubt, call your TA or the supplier directly
to figure out exactly what you will forfeit to penalties if you have to cancel
at the last minute.

And, as posted previously, I don't know of any insurer -- certainly no major
insurer -- that makes you insure the cost of any arrangements that are
fully-refundable.

Thank you very much for your prompt and thorough explanation, in plain English!


Diana


(Cruzinsure) wrote:

snipped - but a "must read" for anyone who wants to know how to calculate
the amount of trip insurance to purchase, go back up a post to find it!

Thanks from me too for the explanation. Very helpful...a keeper.

Jeff