Understanding cruise travel insurance: Its coverage and the reasons for its necessity

What protections does cruise travel insurance offer? Is it worth investing in cruise travel insurance?

The response isn’t always straightforward, as we’ll explore in this guide. However, keep this in mind: cruising doesn’t always guarantee calm waters. Even the most carefully crafted cruise plans can sometimes encounter unforeseen disruptions.

You may have to cancel a cruise unexpectedly due to a sudden illness, such as COVID-19 or the flu. Alternatively, you could fall ill while on the cruise and require urgent medical care. There’s also the possibility that your flight to the ship is canceled, resulting in you missing the departure. Or perhaps your ship arrives late at port after the voyage, causing you to miss your return flight.

In each of these scenarios, having cruise travel insurance could be beneficial — though the term "could" is key here.

Cruise insurance policies can differ significantly, and not all policies address every potential issue. That's why it's crucial to carefully examine the details in a travel insurance policy before making a purchase, ensuring you know exactly what you’re signing up for.

This is also why you should familiarize yourself with this comprehensive overview of cruise insurance. It contains valuable information, and when unexpected events arise during your cruise vacation, you'll appreciate being informed and protected by a robust travel insurance policy.

What protections does travel insurance offer while cruising?

A standard cruise insurance policy typically addresses a variety of situations that could disrupt your maritime vacation — both prior to and during your journey at sea.

For example, policies often reimburse you for cancellation fees due to last-minute emergencies. They also frequently cover expenses related to interruptions in your cruise (like if your ship experiences a breakdown, necessitating a flight home mid-journey). These features are commonly referred to as trip-cancellation and trip-interruption insurance, usually included in a standard travel insurance policy.

Some policies may also reimburse you for expenses incurred due to a flight delay or cancellation that causes you to miss your cruise departure (such as the cost of catching up with the ship at its next port). Additionally, costs associated with delayed or lost baggage are frequently covered as well.

Perhaps most crucially, many travel insurance policies will cover medical expenses you face while on a cruise. Some even include coverage for evacuation from a foreign location if you experience a medical emergency.

According to travel insurance leader Allianz Global Assistance, 53% of all cruise-related claims are attributed to illness affecting the insured individual, while 14% are due to injuries. Furthermore, 8% are for the illness of a family member, 4% for the death of a family member, and another 4% for the illness of a traveling companion, among other factors.

These statistics encompass illnesses and accidents affecting cruisers just before their trips, which can hinder travel altogether. However, many claims are a result of illnesses and injuries that happen during the voyage itself.

"Vacationers often take risks they wouldn’t normally consider at home, such as jet skiing, riding a motorized scooter in an unfamiliar city, or hiking on unknown trails," said James Page, senior vice president and chief administration officer of AIG Travel, to TPG.

Some insurance policies also provide coverage in the event of a travel provider’s financial failure. This means that if your cruise line goes out of business before your trip, you might be able to recover all or part of your payment.

However, cruise travel insurance policies do not cover every scenario. For example, standard travel insurers typically won’t reimburse you if you cancel your cruise due to concerns about an illness outbreak. This holds true even if a government entity, such as the U.S. Centers for Disease Control and Prevention, advises against cruising due to such an outbreak, as was the case during the COVID-19 pandemic.

If you desire the utmost flexibility to cancel for any reason, including concerns about illness, you should consider a more expensive upgrade known as cancel for any reason travel insurance.

Where can you locate a cruise travel insurance policy?

You can purchase a travel insurance policy directly from your cruise line when you book your trip, or through your travel agent (which is often wise when planning a cruise). Alternatively, you can visit a third-party travel insurance provider or a travel insurance aggregator site like InsureMyTrip or TravelInsurance. Additionally, some credit cards may offer travel protections as well.

Here’s what you should know about the different types of cruise travel insurance.

Third-party insurance providers

Third-party insurance companies that focus on travel insurance include AIG Travel, Allianz Travel Insurance, Travelex Insurance, and American Express Travel Insurance.

One advantage of using a travel agent or aggregator is that they can assist you in finding a policy that includes specific coverage tailored to cruising.

"Many policies now include features that are particularly beneficial for cruise travelers, such as coverage for missed connections, missed ports of call, and cruise disablement," stated Stan Sandberg, cofounder of TravelInsurance.com.

Missed connection coverage reimburses travelers for a specific amount if they must rebook their travel to catch up with their cruise at the next port. Meanwhile, missed port-of-call coverage provides benefits if the cruise ship skips a scheduled port due to weather conditions, natural disasters, or mechanical issues.

Cruise disablement coverage offers compensation if a traveler is stranded on a ship for over five hours without access to power, food, water, or restrooms.

As mentioned, insurance policies can differ significantly. It’s wise to compare options and ensure the one you select includes the features that matter most to you. There’s no universal solution that fits everyone.

Credit cards that provide travel benefits

Certain premium credit cards provide significant travel protections similar to those found in standard travel insurance policies. For instance, travel insurance that comes with select cards can reimburse you for expenses related to damaged baggage, overnight stays caused by flight delays or cancellations, or returning home for a family medical emergency.

The Chase Sapphire Reserve card, for instance, includes trip delay reimbursement, trip cancellation and interruption insurance, emergency medical coverage, and even medical evacuation coverage, among other advantages. Importantly, cruise lines are classified as common carriers, just like airlines.

If you plan to use a card like the Chase Sapphire Reserve or The Platinum Card® from American Express* for travel insurance, make sure to review your card's benefits and limits against standard travel insurance options. To qualify for these protections, you must pay for at least part — and sometimes all — of the trip with that credit card.

*Eligibility and benefits vary by card. Terms, conditions, and limitations apply. For more information, visit americanexpress.com/benefitsguide. Policies are underwritten by New Hampshire Insurance Company, an AIG Company.

Check whether your credit card offers travel accident insurance or covers preexisting medical conditions, and determine the circumstances under which it will reimburse you. Other important questions to consider include: What are the coverage limits? Will you need to pay for a foreign hospital bill upfront and seek reimbursement later?

Cruise lines

When booking a cruise, cruise lines often encourage consumers to purchase their own protection plan at the time of booking. If the coverage details are unclear, always inquire with the cruise line for specifics, review the coverage benefits and limitations, and then compare those to one or two independent travel insurance options or the insurance benefits of your credit card.

Travel insurance policies offered by cruise lines may have peculiarities. Many cruise companies will provide a travel voucher or credit for future use in the case of a covered cancellation, rather than issuing a direct refund.

Moreover, financial default may not be included as a covered event in policies sold by cruise lines, whereas it is usually covered by plans from third-party travel insurance providers.

Policies from cruise lines can also be more restrictive in nature.

"Cruise line insurance appears to have improved and now offers broader coverage than in the past, but it usually won’t cover air travel or pre- and post-travel arrangements unless those components are booked through the cruise line," explained Debra Kerper, a Cruise Planners travel adviser from Carrollton, Texas, who arranges travel and sells private insurance. "This highlights the significance of having private insurance coverage."

What is the cost of cruise insurance?

You can expect to pay between 4% and 8% of your total prepaid, nonrefundable trip expenses for a travel insurance policy. While this is a broad range, it reflects the variety of products available.

You may also come across basic plans that cost less than 4% of your trip expenses, while some premium plans that cover nearly every possible issue can charge as much as 12% of your trip costs.

All reputable insurance companies provide a "free-look period" during which you can receive a full refund on your premium. This allows you to review the chosen policy and return it for any reason within the specified period — usually for a small administrative fee of under $10.

Generally, you don’t need to add a "cancel for any reason" option to your cruise travel insurance unless you require extra flexibility. These upgrades can be quite costly.

You can obtain a quote and buy a policy online in just minutes using any credit card. While you might assume that travel insurance should categorize as "travel" when charged on a credit card, and thus earn bonus points on certain cards, that’s not always the case. Your points accumulation will depend on the specific underwriter's merchant code. When unsure, anticipate that the purchase will be classified under insurance for points purposes.

Should I consider purchasing travel insurance for a cruise?

Deciding whether to buy travel insurance is a personal choice influenced by various factors. Are you comfortable with the potential loss of canceling a cruise on short notice due to illness or an accident? Could you manage the cost of an evacuation flight from a distant port if you were to fall seriously ill? Only you can answer these questions.

Here are several factors to weigh as you make this decision.

Your regular medical insurance may not cover you while cruising.

If you are a U.S. citizen traveling abroad (which applies to most cruises), you might discover that many private medical insurance plans in the U.S. do not provide coverage.

Furthermore, Original Medicare only covers international travel in specific, limited situations.

While some Medicare Supplement Plans offer certain foreign emergency medical benefits, not all of them do. It's important to consult your Medicare Supplemental Plan provider to confirm your coverage, understand what is included, the limits, and how bills are handled.

It's important to remember that in certain countries, especially in Central and South America, travelers may not be discharged from a hospital until their bill is fully settled.

Additionally, if you experience a medical issue abroad, you might find yourself in a shared hospital room lacking air conditioning or a private bathroom. The standard of care may not meet your expectations.

"For those traveling internationally, it’s essential to know in advance where to seek treatment … and how to pay for that treatment," stated Page.

The cost of medical evacuation can be quite high.

Most airlines typically do not accommodate seriously ill passengers, those with large medical equipment, or individuals requiring a complete medical team.

Even a budget-friendly weekend cruise to the Bahamas from Miami can become expensive if you face a serious accident or illness that necessitates medical treatment or emergency evacuation.

Transporting you back to the U.S. from a remote overseas location via a private, medically equipped aircraft with a professional medical team can cost between $70,000 and $180,000, according to Mike Hallman, president and CEO of Medjet, a medical transport membership service.

"Domestic airlifts, which we also cover, can exceed $30,000," Hallman mentioned.

Without evidence of medical evacuation coverage, foreign medical providers will typically require payment upfront. Hallman noted that standard travel insurance usually covers transport to a suitable overseas hospital and, if deemed "medically necessary," to a higher-level care facility. On the other hand, medical evacuation coverage allows you to return home to your own hospital, doctors, and family—without dealing with claim forms, transport cost limits, or unexpected bills.

According to Hallman, a dual strategy of purchasing both travel insurance and a separate medevac transport membership is a wise choice.

"We always advise travelers to get insurance, as it covers trip interruptions, which is crucial, along with medical expenses for hospital stays and treatment," he explained. "We fill the gaps where other coverage may fall short."

Weather is unpredictable.

Cruising offers a fantastic opportunity to visit multiple destinations within a single journey. However, it's essential to keep in mind that unforeseen delays, interruptions, or cancellations due to weather can occur during cruises, especially during hurricane seasons in regions like the Caribbean and Asia (where hurricanes are referred to as typhoons).

During a typical hurricane season (from June 1 to November 30), Allianz processes around 6,000 claims from customers whose travel plans in the Caribbean, Gulf of Mexico, and southeastern U.S. are disrupted by storms, according to a representative from Allianz Global Assistance USA.

If you're looking to protect against a storm-related incident, it's wise to purchase travel insurance as soon as possible. Once a storm or hurricane is named, it's too late to secure coverage for that event.

Naturally, cruise lines will reposition ships away from weather threats. When adjustments are made to the port schedule or the cruise is shortened, the company typically offers guests an onboard credit, a gift, or a future cruise credit instead of a cash refund. This varies based on the specific circumstances of that voyage. You won’t be able to file a claim on your cruise travel insurance for a minor itinerary alteration.

Expenses can escalate quickly when things go awry.

Even if the cruise line grants a full or partial refund or cruise credit for itinerary changes or interruptions, travelers may still bear the costs of other travel elements not booked through the line. This might include nonrefundable flights, prepaid hotel stays, nonrefundable tour fees, and more.

Travel insurance can cover these additional costs and assist with flight delays or cancellations, as well as baggage loss or theft.

If a winter storm leads you to miss your flight to the embarkation port, "travel insurance could assist you in reaching the next port to catch up with your cruise, ensuring you don’t miss your entire trip," Page explained.

In fact, 13% of claims filed with Allianz are attributed to delays from common carriers (like flight delays), while about 3% stem from weather or natural disaster-related issues.

Don't expect the government to cover your expenses.

Although cruise ships are equipped with medical facilities, they typically lack the resources to handle serious health issues. If a significant medical emergency arises while onboard, you may need to disembark at a foreign port for treatment at a hospital. In that scenario, without medical evacuation insurance, you could find yourself stranded there, waiting for an evacuation.

Don’t count on the government to help pay the bills.

The U.S. Department of State's Bureau of Consular Affairs emphasizes the importance of securing travel insurance.

"The U.S. government does not provide medical insurance for American citizens abroad," states the bureau on its website. "We do not cover medical expenses. It's essential to buy insurance before traveling."

You might require more help than you anticipate.

Should you get injured or fall seriously ill during a cruise, especially in another country, accessing the necessary support can be challenging without the aid of trained professionals that many insurance plans offer.

Numerous travel insurance providers offer 24/7 support for finding clinics and pharmacies abroad, arranging transportation to a doctor or hospital, refilling lost prescriptions, facilitating upfront payments to medical facilities, and coordinating flight changes for your return home.

Insurance companies can also organize air ambulances, nurse escorts, oxygen supply, and a flat-seat arrangement for your flight back if your medical condition requires it.

Exercise caution if you have preexisting health conditions.

While cruising, it's crucial to ensure you have thorough medical coverage that encompasses any preexisting conditions. Without it, you may not be covered for doctor's visits, tests, urgent care, or emergency room treatments abroad.

Timing is critical here. To get coverage for preexisting conditions and for cancel for any reason insurance, travelers typically need to book within seven to 21 days after making their first trip payment. This window can differ among insurers.

Final Thoughts

Cruise insurance may not be necessary for every traveler or every voyage. While it can be costly, it offers significant peace of mind as you embark on your journey at sea. Be sure to research thoroughly, compare different options, and evaluate your individual risks.