Is Cruise Travel Insurance Really Necessary?

When booking a cruise, whether online or through a travel agent, you’ll often be presented with the option of cruise travel insurance. But do you actually need it? The answer largely depends on your travel style and how much you want to safeguard your investment in the cruise experience.

Consider cruise travel insurance as your safety net. The COVID-19 pandemic taught us that even the best travel plans can be disrupted. While it's likely that your cruise will go smoothly, what if it doesn't?

As a regular cruiser, I value peace of mind. My personal guideline: if my cruise costs over $1,000 per person, I invest in cruise travel insurance to ensure I can recover most or all of my funds in case I need to cancel the trip.

Additionally, I always secure international medical coverage.

Here’s what you need to know about purchasing travel insurance for a cruise and the available options for cruise travel insurance policies.

Should you consider buying insurance from the cruise line?

Many cruise lines simplify the process of purchasing travel insurance by allowing you to select it with a checkbox during your booking, and travel agents can also offer these policies, which are provided by external insurance companies.

While it's a convenient way to secure cruise travel insurance, the prices are generally not the most competitive. Cruise lines, not being insurance specialists, often provide policies with limited options, resulting in a one-size-fits-all coverage that may include more than you actually need. Cruise travel insurance typically ranges from 4 percent to 10 percent of your total trip cost. Policies from cruise lines tend to be on the higher end of that spectrum.

A typical cruise line insurance policy covers trip cancellation for common issues like unexpected weather or illness. It also includes trip interruption and delay coverage, reimbursing you for late starts, early returns, emergency medical or dental care, emergency evacuations, delayed baggage, and lost baggage protection, along with 24-hour customer support.

You may also have the option to upgrade to cancel for any reason (CFAR) coverage. While standard insurance protects against unexpected events, once an event, like a hurricane, becomes known or is named, it won't be covered by standard cancellation policies—only by CFAR. However, CFAR coverage doesn’t guarantee a full refund, so travelers should carefully consider the cost versus benefits.

Be mindful that the insurance offered by the cruise line might not cover expenses incurred before or after the cruise—such as flights, hotel stays, or transportation that weren't booked through the cruise line. Moreover, if your cruise is canceled or interrupted, the “reimbursement” could come as future cruise credits instead of cash. Always read the fine print and assess the convenience, cost, and coverage when evaluating the cruise line's policy.

But hold on—check if you already have travel insurance

Before purchasing cruise insurance—or any travel insurance—take stock of what’s already covered by your existing insurance policies (like health insurance) and your credit cards. This way, you can avoid overspending on unnecessary coverage.

For example, lost luggage may already be covered by your homeowner’s or renter’s insurance. Additionally, if you hold a premium credit card such as the Chase Sapphire Reserve® or The Platinum Card® from American Express, you likely have substantial coverage for trip cancellations and disruptions—provided you used the card to pay for your trip.

It's crucial to consider medical coverage, as many health insurance plans do not extend to international travel. For example, Medicare does not provide coverage overseas. Having protection for medical emergencies is essential. As a frequent traveler and baby boomer, I opt for annual plans (like the basic AllTrips plan with Allianz, details below) that cover both medical expenses while abroad and medical transport (via Medjet) in case I need to be evacuated to a hospital of my choice.

Purchasing cruise insurance from independent travel insurance providers

Given the above factors, you might consider exploring various options, comparing basic to premium cruise insurance policies that cater to your specific needs.

Numerous reputable travel insurance companies can provide coverage for your cruise, including:

• Allianz
• Travel Guard from AIG
• Travelex
• Berkshire Hathaway

You can either visit insurance companies directly or, in my view, it's better to compare policies through an aggregator website like InsureMyTrip.com, SquareMouth, or TravelInsurance.com. Whether you choose to go to an insurer or utilize an aggregator, you can apply filters for the specific coverage you need and exclude what you already have. This approach can save you money and help you quickly find the right coverage plan.

Is travel health insurance necessary for a cruise?

Medical insurance that covers you while traveling is definitely something to think about—this became very clear during the pandemic. Even now that the COVID public health emergency has ended, travelers can still unexpectedly fall ill or get injured. If that happens, you'll want to ensure your medical expenses abroad and while cruising are covered, especially if you require evacuation or a costly hospital visit.

With COVID-19 still in circulation alongside other contagious illnesses, it’s wise to have contingencies not only for medical care but also to cover costs in case you need to isolate in a hotel before returning home.

As I mentioned, since I frequently travel internationally, I have an annual, basic AllTrips plan with Allianz that includes emergency medical and dental coverage, as well as emergency medical transportation. Additionally, I hold an annual plan through Medjet for evacuation due to medical or security issues.

That might seem like a significant amount, but ultimately, it’s all about achieving personal peace of mind.

Cancel for any reason (CFAR) coverage

As mentioned earlier, standard insurance protects against unforeseen risks, but once an event like a hurricane becomes known, it won't be covered by standard trip cancellation policies—only by an optional cancel for any reason (CFAR) upgrade. CFAR provides coverage if, for instance, you simply decide to change your mind about your cruise. This upgrade can significantly increase the cost of your standard policy—up to 40 percent—but it may be worth it for some travelers.

If you're planning a family trip to the Caribbean during hurricane season, this add-on might be something to consider. Personally, I tend not to indulge in this option.

Regardless of the coverage you select, think of it as a safety net. Ideally, you won’t need it, but it’s reassuring to know it’s available.