Should You Buy Cruise Insurance? What to Know

Cruises, like any other type of vacation, are a worthwhile investment — and many folks purchase cruise insurance as an extra form of protection in case things go wrong. This specific type of insurance helps mitigate the costs of covered expenses — keyword: covered! — which often include cancellations, delays, and even medical emergencies. 

Fortunately, when it comes to cruise insurance, options abound to suit each traveler’s specific needs. Below, we’re breaking down everything you need to know about cruise insurance — including pros and cons, the different types of insurance options, tips on choosing the best policy, and how to use the insurance if necessary — with expert insight. 

Pros and Cons of Cruise Insurance

Purchasing cruise insurance means you’ll have financial protection in the event of an emergency, mishap, or unexpected incident, injury, or illness. For example, explains Jen Travis, a travel advisor specializing in cruises at Marvelous Mouse Travels, “Most of my cruisers are not aware that once they leave the U.S., their medical insurance typically does not provide coverage should they become sick or injured while traveling outside the U.S.” So, she says, “If you were to break an ankle and need surgery, that is potentially thousands of dollars out of your own pocket.” Daniel Durazo, director of external communications at Allianz Partners USA, shares similar sentiments, telling Travel + Leisure, “Whatever can happen at home can happen at sea, so if you become ill or injured while cruising, you may face a large bill from the infirmary or have to be moved to a hospital where you may be asked to pay in advance of treatment.” Ultimately, though, “Travel insurance can help pay for the cost of these scenarios, up to the limit of your policy,” Durazo says. 

Cruise insurance is an added cost, which is important for budget-conscious travelers to keep in mind. But beyond that, ironically, the biggest “con” of purchasing cruise insurance happens when your sailing runs smoothly, and there’s no need to use it. Even still, Travis still suggests it to her customers, saying, “Vacations are truly an investment, so why wouldn’t you protect it?”

Types of Cruise Insurance

Both Travis and Durazo tell T+L that there are several types of cruise insurance policies to choose from. Below, we’re breaking down some of the most common types, as well as the differences in coverage offered. 

Cruise Line-issued Policies

Many cruise lines, including Royal Caribbean, Norwegian Cruise Line, Princess Cruises, Carnival Cruise Line, Disney Cruise Line, and Holland America Line, offer passengers the opportunity to book insurance directly with them. However, it’s a good idea to do some digging — and perhaps even contact the line directly — to gain a better understanding of the policy, which may have some limitations and stipulations. While this varies depending on the cruise line, it’s worth noting that some only offer partial refunds or limits on trip delays. Several cruise lines also offer different tiers of coverage that include extras like emergency evacuations — either up to a certain amount or full coverage — and/or additional medical expenses. 

Third-party Policies

Third-party policies are available through carriers like Allianz, Travel Insured, and AIG Travel, to name a few. These companies often offer more robust policies and extensive coverage options than cruise lines. That said, it’s worth noting that policies and coverage can vary depending on the company, so it’s a good idea to do some research to compare the benefits and costs. 

Pro tip: Cruisers looking for the most flexibility should look for a policy that offers Cancel for Any Reason (CFAR) insurance, which — you guessed it — allows you to cancel your trip for any reason. Keep in mind that CFAR insurance is often offered as an optional add-on, which means it will most likely cost you extra. 

Credit Card Insurance

Several types of credit cards, especially premium ones, offer varying levels of travel insurance, which means you may not even need to go out and purchase a separate policy — as long as you use said credit card to pay for your cruise. (We recommend contacting your credit card company directly to get the full breakdown of coverage options and limitations.) For example, the Chase Sapphire Reserve credit card provides a slew of benefits and protections, including but not limited to trip delay reimbursement, trip cancellation/interruption insurance, lost luggage reimbursement, and travel emergency assistance services.

Travel Medical Insurance

Travel medical insurance can be purchased separately as a stand-alone policy or as part of a more comprehensive insurance plan, including some of the ones listed above. As you can guess by its name, this specific type of insurance provides protection against emergency medical expenses, including illnesses and injuries. As such, these can include things like X-rays, drugs, dental care, and ambulance services, among others. 

How to Choose the Best Policy 

When it comes to choosing the best cruise insurance policy, you’ll need to consider what’s most important to you. Below, Durazo breaks down a few factors to keep in mind when selecting a policy: 

Emergency Medical Transportation Benefits

According to Durazo, “The cost of a medical evacuation by air ambulance can exceed $100,000 in some parts of the world.” With that in mind, he recommends looking “for a policy with sufficient emergency medical transportation benefits for your specific trip and destination.” 

Covered Reasons for Trip Cancellation or Interruption 

Durazo encourages travelers to thoroughly read through the policy to understand the coverage terms. For example, “Some cruise lines may offer you a credit for your canceled trip while a travel insurance policy can reimburse you in cash for a covered cancellation.” 

Trip Delay Coverage 

“If your flight is delayed and you miss your cruise ship’s sailing, it may cost you quite a lot to catch up with the ship at its next port of call,” says Durazo. Fortunately, “Trip delay benefits can reimburse you for those covered unexpected costs, up to the limit of your policy.”

How to Use Cruise Insurance 

According to Travis, “Once you purchase the policy, it kicks in the date you leave your house/start date of the vacation.” That said, “More than likely, you will have to pay out of pocket for the doctor’s visit, flight change fees, etc.” However, you can then file a claim and provide all the necessary documentation to start the reimbursement process. Once your claim is approved, Travis says it can take anywhere from three to six weeks. Some carriers, such as Allianz, offer 24/7 customer assistance, who, per Durazo, can “walk you through your plan’s benefits and medical costs, coordinate your care with doctors treating you on the cruise or at your port of call, or ensure you’re at an appropriate medical facility.”