Travel Insurance
Travel insurance is recommended to protect you in the event that you have to cancel your trip or in case something happens while travelling. Insurance can be confusing and understanding what is covered and not covered isn't always clear. CruiseDis is here to help you understand your options and provide guidance to help guide you through your insurance purchase decisions.
What Does Travel Insurance Do?
Travel insurance covers you for issues that may arise before and during travel. Specific coverage varies from policy to policy, but the following is an overview of common insurance coverages:
Should You Buy Travel Insurance?
The first question people usually ask is whether or not they need travel insurance. The answer depends on a couple of things:
- If you lost the money you paid for the trip, would it be a financial burden?
- If you could handle losing the money paid for the trip, then maybe you are comfortable not insuring your trip expenses.
- Many insurance companies will allow you to insure a trip for $0, which essentially means you are purchasing a medical, travel delay, and baggage coverage policy. Keep in mind that policies that cover pre-existing conditions usually require you to cover the full cost of the trip, so this strategy would not be advised if you need a plan that covers pre-existing conditions.
- Do you have other insurance or funds to cover emergency medical expenses or emergency transportation should an issue arise?
- Keep in mind that most U.S. medical insurance plans do not provide coverage outside of the United States.
- Some travel credit cards, and some high end credit cards, may offer some form or travel insurance or evacuation coverage when the card is used to purchase the trip.
- Check to make sure that the coverage amounts from other sources are sufficient. For example, travel insurance provided by credit cards may be much smaller compared to traditional travel insurance plans.
The fact is, accidents happen and you can never anticipate the future. You could slip and fall on a boat during snorkeling excursion, a hurricane could ruin your plans, or a new pandemic could break out. Travel insurance protects your money, your health, and provides peace of mind protection against the unknown.
In my early days, I never purchased travel insurance. Instead, I preferred to save the money, figuring that every 12 trips of not buying travel insurance would pay for an extra trip. I am fortunate enough to have never had an issue that would have required the protection travel insurance affords me. Nowadays, I've changed my mind on the importance of having travel insurance. There are three reasons for this:
- My work in the travel industry have allowed me to witness multiple instances where travel insurance saved the day, or where people who didn't purchase travel insurance really wished they had.
- During a jet ski excursion at Disney's Castaway Cay, I saw two people collide with one another. One of the people, a young man, had to be taken off by a rescue boat on a stretcher due to a back injury that he sustained from the crash. He was flown of the island by helicopter. It very easily could have been me that it happened to.
- COVID-19. Enough said.
What Coverage Do You Need?
If you've decided you want to purchase travel insurance, the first thing you should do is figure out what kind of coverage you need. What are you worried about? This may seem obvious, but many people blindly purchase a travel insurance without making sure it covers their specific concerns. For example:
- Do you have a pre-existing condition that you are worried about? If so, be sure to find a policy that covers pre-existing conditions.
- Are you in the military and worried about being called to active duty? If so, make sure your policy specifically covers that.
- Are you planning on deep SCUBA diving, mountain climbing, or bungee jumping? Then you need to find a policy that specifically covers extreme sports or high risk activities.
- Do you have an employer that may cancel your time off? Then you need a policy with "required to work" coverage.
Once you determine what you need to cover, you should also look in to how much coverage you need. Most travel insurance companies offer different plans with different levels of coverage.
For example, an older traveler or someone with a complicated medical history may be interested in a policy that offers higher limits on medical coverage. Maybe you are travelling with lots of luggage and would prefer a policy with more coverage for lost bags. Check the coverage limits to make sure it is sufficient for your needs.
Cruise Line Travel Insurance
When you book your cruise, you will most assuredly be offered the opportunity to add travel insurance. While purchasing insurance through the cruise line is the easiest option, it is often not the best option. CruiseDis usually recommends purchasing travel insurance from third party insurance providers and not directly with the cruise line. However, there are some instances where cruise line policies make sense.
Cruise Line Insurance Advantages
Cruise line travel insurance offers a few advantages compared to purchasing insurance from a third party insurance company.
First, purchasing through the cruise line is very simple. Usually you just have to click an extra button during the booking process or tell the phone agent "yes" when they ask you. There is nothing for you to research and no extra forms to fill out. It's also usually safe to assume that insurance offered by major cruise line's is backed through a reputable company.
Second, cruise line policies often include cancel for any reason coverage for no additional cost. This significantly increases the reasons for which you can cancel your cruise over and above the typical list of covered reasons offered by most insurance plans. However, claims for non covered reasons are generally paid at a reduced amount (75% in Disney's case) and offered as future cruise credits rather than as a cash refund. Click here to read more on cancel for any reason coverage.
Third, in the case of Disney Cruise Line, the insurance is not prepaid in most cases, but is instead rolled into the final cost of the cruise and is paid when final payment due. If you should cancel the trip while it is still fully refundable, you have not lost any money buying insurance on a cruise you aren't going on. If you purchase insurance outside of the cruise line, the insurance will probably be non-refundable. If you are travelling with another cruise line and you have a non-refundable deposit, then the insurance will typically also be non-refundable, but check that cruise line's specific policy for details. Please note that if you are booking concierge or suites with Disney Cruise Line, these staterooms are not refundable.
Finally, the coverage is usually a flat rate regardless of the traveler's age. This is an advantage for older travelers or groups traveling without kids. However, younger travelers or families with children will usually find a better deal booking outside of the cruise line.
An Argument Against Cruise Line Insurance
One of the biggest disadvantages to cruise line policies is that they only cover items booked through the cruise line. But in addition to that, there are also considerations regarding when your coverage begins for emergency medical, evacuation, trip delay, and lost or damaged baggage. Consider the following example:
Let's say that you are going on a Mediterranean Disney Cruise and have purchased insurance through the cruise line that includes emergency medical coverage. You fly to Rome the day before your cruise leaves on a flight you booked through Expedia. On the flight over you get extremely ill and have to go to the emergency room in Rome.
After your visit to the emergency room, you call Disney's insurance provider to file your claim. While on the phone, they say that your claim will likely be denied. They point out that your policy states that emergency medical coverage "begins at 12:01 AM on the date when you depart on the first travel arrangement". You don't see the issue because you had already departed on your first travel arrangement. You were on the plane when you got sick.
Then they refer you to the "Definitions" section of the policy which defines "Travel Arrangement" as "services arranged by your travel supplier". Once again, you don't see an issue because the flight was arranged by your travel supplier, in this case Expedia. Finally, they refer you to the policy's definition of "Travel Supplier" which states "Disney Cruise Line".
Since the cruise was the only thing booked through Disney, your coverage didn't begin until the day of your cruise, but you flew out the day before. Now you are on the hook for the medical bills, plus the expense of the trip if you are unable to continue on the cruise. This would be the case whether the claim was for medical expenses, travel delays, or baggage issues.
You thought, in good faith that you would be covered by your travel insurance, but because you didn't read the entire policy, and go back three steps through the "Definitions" section, you didn't discover that you weren't actually covered.
Cruise line policies tend to be more restrictive, and this is just one example of the limitations. What if you wanted to stay 3 days after the cruise to explore Rome on your own? You would likely not be covered. If your travel involves anything that was not booked by the cruise line, it may be better to get an outside policy that you know covers all of your travel arrangements for the entire length of the trip.
When Cruise Policies Make Sense
There are some circumstances where travel protection purchased directly from the cruise line may make sense. The more that the following scenarios apply to you, the more it may make sense to consider a cruise line policy:
- The cruise leaves and returns from your country of residence and your regular health insurance will cover you until you board. For example, U.S. based health insurance will generally cover you for emergencies as long as you are in the United States.
- You are not flying for your trip, perhaps because it departs from a nearby port you can drive to. Delayed and cancelled flights, as well as lost bags, are a major reason to get travel insurance. Not having to fly reduces the need for a policy that covers such things.
- You book your flights, pre and post cruise hotels, and tours through the cruise line. This could also apply if you book just one or two small items outside of the cruise line. For example, if the flights and cruise were booked through the cruise line, you would be covered for the most expensive items and might not worry about covering a $250 pre-cruise hotel.
- You need cancel for any reason protection. This coverage is included in the cost of many cruise line policies, but can be a significant additional cost for polices outside of the cruise line. Be sure to check prices, because in some cases, third party insurance with cancel for any reason may still be less than through the cruise line.
- Travelers in your group are older and there are no kids. Many third party insurance companies will cover children for free or a reduced price. If there are no children, cruise line policies are more competitively priced.
- You have a fully refundable cruise fare and you already know there is a high likelihood you will cancel the cruise. Sometimes cruise lines, including Disney Cruise Line, will not charge you for travel insurance on refundable fares cancelled before final payment is due.
We always recommend comparing the costs and coverage options from the cruise line and outside insurance companies to make sure you are making the best choice.
Disney Cruise Line Vacation Protection Plan
As of March 2023, Disney Cruise Line's Vacation Protection Plan costs 8% of the pre-tax cruise price, regardless of the person's age. Vacation protection can be added to a cruise any time before final payment has been made on the cruise.
For non-concierge and non-suite reservations, the Disney Cruise Line Vacation Plan is added to the final price of the cruise and is not paid until final payment is due. Once you make final payment, the insurance is not refundable, even if you request the refund before final payment is due.
For concierge staterooms and suites, the insurance must be paid when the deposit is due and it is not refundable. If you change the sail date before final payment, you can move the travel insurance to the new booking.
You can get an overview on Disney Cruise Line's Vacation Protection Plan on their website by clicking this link.
The full policy details are available from Arch Insurance Solutions by clicking this link.
Third Party Insurance
Third party insurance simply refers to insurance from a company other than one who you've booked travel through. There are many options for purchasing travel insurance beyond the plans offered by cruise lines. Generally speaking, you are better off purchasing insurance from a company that specializes in travel insurance, but it takes more effort to research your options and select the right plan. Also, cruise lines usually offer one, or perhaps two insurance options, while purchasing outside of the cruise line gives you greater flexibility to customize your coverage and increase coverage limits if needed.
Third Party Insurance Advantages
There are four major advantages to purchasing insurance from a third party travel insurance company.
First, third party travel insurance is generally less expensive than travel protection purchased through the cruise line. This is especially true if there are children in the group, as these are often discounted or free through third party providers. You can generally get third party insurance that covers your entire trip, including flights, hotels, tours, and the cruise for the same or less money than covering only the cruise with a cruise line policy.
Second, insurance purchased from the cruise line generally only covers items booked through the cruise line. While it is possible to book flights and hotels through the cruise line, sometimes this is not advantageous and your options are limited to their partner hotels and airlines. However, a travel insurance policy purchased outside of the cruise line can be used to cover the entire trip, not just the cruise, no matter who you book through.
Third, many cruise line policies, including Disney's, exclude pre-existing conditions from some or all of the coverages. Third party insurance policies often offer the ability to cover pre-existing conditions, assuming you meet their criteria. Be sure to check out the section on pre-existing conditions if you need this coverage.
Finally, as a general rule, third party insurance offers higher coverage limits than what you get from cruise line policies. This of course varies depending on the cruise line, the type of coverage, and the policy you choose, so be sure to check to see if this applies to your situation.
Other Considerations for Third Party Insurance
- Insurance premiums are age based, which results in lower costs for younger travelers, though this may not be as advantageous for older travelers.
- Some companies allow you to customize policies with add-ons or additional endorsements, for example, being forced to work, or adding rental car coverage.
- Cancel for any reason is available from third party providers at an additional cost. One advantage is that claims are offered as cash refunds instead of as a future cruise credits.
- If you cancel your original trip, you can sometimes transfer the policy to another trip, provided the new trip starts before your policy expires.
Recommended Insurance Providers
Allianz Travel Insurance is the travel insurance provider recommended by CruiseDis. As of 2023, they were the world's largest insurance company, so you know that your trip is being backed by a reputable company. Their policies are competitively priced and offer a good balance of features that work for most travelers. Plus, coverage for children under the age of 18 is free, making it very affordable for families.
Their OneTrip Prime, Premier, and Classic level plans also provide pre-existing condition waivers, as long as you meet the required criteria.
Emergency medical and baggage coverage on their "standard plans" is a little lower than what is available from other providers. If you need higher baggage coverage consider a higher level plan or a different provider.
Perhaps the most important reason for our recommendation is that Allianz has proven themselves to be trustworthy. Some insurance companies get a reputation for doing everything they can to avoid paying claims. However, in our experience in the travel industry, Allianz has always paid a valid claim submitted to them by travelers.
Policy Comparison
Below is a comparison of three plans for a family of four people aged 40, 40, 12, and 8 covering a $10,000 trip. For the Allianz and TravelGuard plans, their "middle of the road" plan was selected, meaning there are also lower and higher coverage plans available. Disney only offers one option.
The cost shown is the total cost of insurance for the entire family, while coverage amounts are listed per person. The costs and coverage limits were obtained in March, 2023.
| Insurance Provider | Disney Cruise Line Travel Protection | Allianz OneTrip Prime | TravelGuard Preferred |
| Cost | $800 | $290 | $370 |
| Trip Cancellation | 100% (Maximum of $20,000 per person) | 100% of Coverage Amount | 100% of Coverage Amount |
| Trip Interruption | 100% (Maximum of $20,000 per person) | 150% of Coverage Amount | 150% of Coverage Amount |
| Travel Delays | $500 | $800 ($200 per day) | $800 ($200 per day) |
| Emergency Medical | $20,000 | $50,000 ($500 for dental) | $50,000 ($500 for dental) |
| Emergency Evacuation | $30,000 | $500,000 | $500,000 |
| Baggage Loss | $3,000 | $1,000 | $1,000 |
| Baggage Delay | $500 | $300 | $300 |
| Cancel for Any Reason | Included at 75% toward a future cruise | Additional cost of $482 for 80% coverage | Additional $157 for 50% coverage |
As you can see, the Allianz plan is significantly less than the Disney Cruise Line plan, while offering higher coverage limits in all categories except baggage. In fairness, the Disney plan does include 75% cancel for any reason coverage, though Allianz is still less expensive if you purchase their optional cancel for any reason coverage.
Keep in mind that your pricing may vary depending on your trip details and the ages of the travelers. Be sure to check the specific costs and coverage limits for your trip and travel party.
Covered Reasons
The biggest mistake that people make when purchasing travel insurance is assuming they are covered for any and every issue that can occur. This is not the case. Insurance policies will describe the specific items that are covered and excluded from a policy. It is important for you, as a traveler, to understand what is covered and what is not covered in your specific policy.
For example, many travel insurance polices cover you for trip cancellation if a family member, who is not travelling with you, becomes ill. However, it there are conditions that must be met. The illness will usually have to be life threatening or require hospitalization and be backed up with documentation from a medical doctor. You couldn't cancel because someone caught a simple cold or broke their toe. Also, the policy will define who qualifies as a family member. This will usually include spouses, domestic partners, parents, grandparents, children, grandchildren, and siblings. However, your great aunt or your father’s brother’s nephew’s cousin’s former roommate probably wouldn't count.
Furthermore, a policy could provide exclusions if the illness was considered known or foreseeable. If a family member hospitalized for a heart attack had a history of heart attacks and was actively being treated for heart disease when you purchased the travel insurance, it may be excluded as a pre-existing condition.
Reputable insurance companies are usually fair in what they cover, finding a balance between providing the coverage a traveler expects, while protecting the insurance company from abuse and extreme or foreseeable circumstances. The best thing you can do, especially if you have a specific concern, is to review the "Covered Reasons", "Exclusions", and "Definitions" sections of your policy. If you have further questions about your coverage, contact the insurance provider to get clarification.
Covered Reasons Examples
Below is a sample list of covered reasons that are common on many travel insurance policies. There are more comprehensive plans that may provide additional covered reasons not listed below. Some insurance companies may add certain covered reasons as an add-on, for an additional charge.
Exclusion Examples
Below are examples of items that are not covered by most travel insurance policies, or that may not be covered without a special endorsement. Remember that each policy is different, so you should always consult your policy for your specific exclusions.
Pre-Existing Conditions
Pre-existing conditions are often not covered by travel insurance polices. This could apply to the reimbursement of non-refundable trip expenses if you have to cancel a trip due to a pre-existing condition. It could also mean the denial of medical expenses incurred while traveling, that were related to a pre-existing condition. Some policies may still cover emergency evacuation expenses related to pre-existing conditions, while some will not.
The first thing is to identify what your travel insurance provider considers to be a pre-existing condition. This will be described in the "Definitions" section of the policy. Below is the definition used by Disney Cruise Line's travel insurance provider as of March 2023:
A pre-existing condition means an illness, disease, or other condition during the 60 day period immediately prior to the effective date of your coverage for which you or your traveling companion, or family member scheduled or booked to travel with you: 1) received or received a recommendation for a test, examination, or medical treatment; or 2) took or received a prescription for drugs or medicine. Item (2) of this definition does not apply to a condition which is treated or controlled solely through the taking of prescription drugs or medicine and remains treated or controlled without any adjustment or change in the required prescription throughout the 60 day period before your coverage is effective under this policy.
Sometimes these legal definition can be confusing, so if there is any doubt, you should consult the insurance company or your doctor to see if you are considered to have a pre-existing condition.
Pre-Existing Conditions Waiver
Some travel insurance policies offer a wavier for pre-existing conditions, which would allow them to be covered. For example, several plans from Allianz Travel Insurance provide a waiver for pre-existing conditions if you meet the following conditions:
- You purchase your plan within 14 days of making your first trip payment or first trip deposit
- On the policy purchase date, you insure the full non-refundable cost of your trip. This includes trip arrangements that will become non-refundable or subject to cancellation penalties between the policy purchase date and the departure date. (If you incur additional non-refundable trip expenses after you purchase this policy, you must insure them with us within 14 days of their purchase. If you do not, those expenses will still be subject to the pre-existing medical condition exclusion.)
- You are a U.S. resident
- You were medically able to travel on the day you purchased the plan
Everything above is pretty clear except for the definition of "medically able to travel". When in doubt, obtaining a note from the doctor treating your pre-existing condition could protect you in case something happens.
Cancel for Any Reason
Some insurance policies, including Disney Cruise Line's, offer Cancel for Any Reason coverage, sometimes known as Cancel Anytime coverage. Cancel for Any Reason coverage allows you to cancel your trip for almost any reason, even if the reason is not included in the covered reasons section of your policy.
A few important things to understand about Cancel for Any Reason coverage. First, it almost always pays at a reduced amount, such as 70% or 80% For example, let's say you have a Cancel for Any Reason policy that covers you at 75%. If your trip cost is $10,000 and you cancel for a covered reason, such as hospitalization of a travelling person, you would receive $10,000 back. However, if you cancel because your pet dog was ill, which is not a covered reason, you could use the Cancel for Any Reason coverage to receive $7,500 of your $10,000 back. Cancelling for a non-covered reason will pay you at the reduced amount.
Cancel for Any Reason plans may not truly cover you for any reason. There are often exclusions, even on a Cancel for Any Reason plan. For example, if you cancel the trip for a self inflicted injury or because you were arrested for illegal activity, your claim may be denied. You may also be denied if the reason you are cancelling was already known prior to the purchase of the policy. For example, if you had reason to suspect you were pregnant prior to purchasing the policy, you may be denied for cancelling for that reason. You should check your policy for potential exclusions.
In addition to paying at a reduced amount, you should keep in mind that Cancel for Any Reason plans cost more than standard insurance plans.
Cruise Line Cancel for Any Reason
Many cruise lines, including Disney Cruise Line, include cancel for any reason coverage in the vacation protection plans they offer. As of March 2023, Disney offered 75% cancel for any reason coverage with their vacation protection plan. However, rather than getting a refund, claims under cancel for any reason are offered as a future cruise credit to be used within one year from the date of issue.
For example, if you cancel a $10,000 cruise for a non-covered reason under the cancel for any reason clause, you would receive $7,500 to use on a future Disney Cruise sometime in the next year. Of course, if you cancel for a reason covered by their policy, you would get the full $10,000 back as a cash refund rather than a future cruise credit.
It should also be noted that taxes and port expenses are generally refunded in full. It is only the cruise fare that is paid at the reduced amount of 75%.
When to Purchase Insurance
The timing of when you purchase your insurance is an important decision. There are three reasons for this:
- Insurance, once purchased, is non refundable. The only exception to this is that there is typically a two week "review period" after purchasing insurance where you have to right to cancel for a refund.
- You are typically only covered for events that occur after you purchase the policy. For example, if you don't purchase insurance immediately, but later purchase a policy after you develop a new medical condition, that medical condition may not be covered by the insurance.
- This was a big consideration when COVID-19 first happened. Many trips were cancelled due to travel restrictions imposed by COVID-19. Countries closed their borders and cruise lines cancelled their cruises. However, after COVID became a known pandemic, new policies would not cover a trip cancelled due to these travel restrictions because it was a known risk. However, if a traveler was sick with COVID, this would have usually been covered under the illness coverage.
- Some items are only covered if you purchase the policy within a certain number of days, usually within 2 weeks of your first trip payment. Examples of coverages that may require insurance to be purchased immediately are:
- Pre-existing conditions
- Vendor default or bankruptcy
- Divorce
If you need coverage for an item that requires you to purchase insurance immediately, then you should purchase the insurance during the required period, usually within two weeks. This especially applies to people needing coverage for pre-existing conditions.
However, if you have no pre-existing conditions, you may be able to wait. For example, as of March 2023, non-concierge staterooms on Disney Cruise Line are fully refundable as long as you cancel 90 or 120 days prior to your sail date, depending on your itinerary. Since travel insurance is not refundable, you may prefer to wait until final payment is due on your cruise, since the cruise is refundable until that point.
You may decide to buy insurance once you purchase your first non-refundable trip expense, such as a flight or non-refundable hotel. Some flights, while not refundable, may allow you to reschedule to a future date for a fee, or even for free. For some people, this flexibility is enough that they fell comfortable waiting to purchase travel insurance closer to the cruise.
Understand that by waiting to purchase travel insurance, you are opening yourself up to some risk by losing coverage for any new events that occur until you purchase the policy. This could cause issues if the new event doesn't cause you to immediately cancel the trip while it is still refundable, but still impacts you after the trip is not refundable, or even while you travel.
If you have a concierge or suite stateroom on Disney Cruise Line, or are travelling on a cruise line that requires a non-refundable deposit, it may make sense for you to purchase the insurance immediately.
One other consideration is that some policies purchased from third party insurance providers, (e.g. not through the cruise line) may allow you to change the date of your trip. For example, if you purchase a policy immediately after booking a cruise, but cancel the cruise and receive a full refund during Disney's flexible cancellation period, you may be able to move the policy to a future trip. For example, as of March 2023, the Allianz Travel Classic Plan could be moved to any trip that completes within 771 days of the original purchase date of the policy.
Free Cruise Planning
