How to Select Cruise / Travel Insurance

I have seen the topic of Travel Insurance surface almost daily on travel-related bulletin boards and chat rooms. I am not an agent for any travel insurance company. Here are several important items to consider when buying travel or cruise insurance.

1. Check out InsureMyTrip.com. This is a really good place to start your search for travel insurance. Simply fill in a few of your travel details and they will present you a great spreadsheet with side-by-side comparisons of the most popular travel insurance policies.
   
   
2. If you graduated from a University, check out AlumniAbroad.com. They offer alumni access to their comprehensive Travel Insurance Select© policy which may be less expensive than some other policies depending upon your age and total cost of your trip. Along these same lines, check out STATravel.com. They offer insurance to student travelers. Rates are based entirely on the length (number of days) of your trip.
   
   
3. Always pay for all of your travel arrangements (cruise, hotel, airfare, insurance) with a credit card. There are numerous benefits which include: (a) the potential ability to get back money if any of the travel arrangements failed to deliver, (b) some credit cards offer travel benefits when you use their card, and (c) a good paper trail when you need to make a claim. Check with your credit card company to get specific details on what they cover.
   
   
4. Many companies offer two different policies. A premium policy with all the "bells and whistles" and a less expensive alternative with a little less coverage. Buy the policy that fits your needs.
   
   
5. Make sure your policy includes the following coverages: Trip Interruption, Trip Cancellation, Supplier Default (also known as "Financial Default"), a Trip Delay Benefit, and at least $25,000 worth of Air Evacuation in the event of a medical emergency.
   
   
6. Make sure your insurance coverage is considered "Primary". This way if your problem is covered by the policy, the insurance company pays you. Period. You do not want "secondary" coverage wherein you have to submit your claim elsewhere first (like to your Homeowners, Health, or other insurance).
   
   
7. Make sure your policy is real insurance. Don't get fooled into buying "travel protection" offered by non-insurance companies. These other companies are often fly-by-night outfits who are not governed by the same rules and bonding/reserve requirements that insurers are.
   
   
8. Do not buy travel protection or insurance issued by your travel agency, airline, or cruise line. There is bound to be some contention here from fellow travels, but think about why you are buying the insurance. What good is insurance if the airline, travel agency, or cruise line you are traveling with goes under? You never know. (The one possible exception to this rule is if you pay with a credit card that covers financial default). Now, this is not to say you shouldn't buy your travel insurance from any provider, like your Travel Agent. Just make sure the insurance is independent of the provider. Your Travel Agent will certainly appreciate the small commission they make from selling you the policy.
   
   
9. Make sure the insurer is rated "A" or higher by AM Best. The highest rating is "A++". Note that A.M. Best only rates the company's financial wherewithal to pay your claims. They do not rate the company's level of service. Ratings and coverages can also differ from state to state.
   
   
10. Buy the policy within the first 14 days (or so) from when you make your first trip payment, so that all Pre-Existing Conditions are covered. Check your company's policy on this time window. This way you never have to prove that a pre-exiting condition didn't exist.
    
    
11. Read the entire policy before buying. Usually the policy and the exclusions can be found online. Look for a document titled "Evidence of Coverage". Make sure it covers you for any scenario you want covered. This is important because some policies do not cover potentially dangerous activities like scuba diving, bungee jumping, sky diving, and hang gliding. Sometimes rental car insurance must be purchased as an "add-on" rider to the "lite" policies should you need it.
    
    
12. While you are reading the policy, don't forget to review the definitions section which dictates how the insurance company defines all of the terms (like family member, medical necessity, and covered trip) and the State Exceptions section which provides any state mandated exceptions and add-ons which may affect your policy.
    
    
13. Look for carrier exclusions to make sure your cruise, air, or travel operator you are considering is not on their list of excluded companies. Excluded companies are not covered by insurance if they go under.
    
    
14. Insurance is usually based upon the total cost of your trip (on a per person basis). Be sure to include the cost of your airfare or other public transportation. Some companies (like Travelex) will cover your minor children for free.
    
    
15. Important: in the event that you do need to make a claim, be sure to collect every receipt and keep them in one place so you can easily find them. Be sure to keep: receipt from TA with cost of trip, all unused airline tickets and transportation receipts, medical bills, copies of theft or other official reports, and any other pertinent receipts relating to the specific claim.