You Just Paid $160000 For A Cruise. Now What?
Cruises were suspended for most of last year and—for the short-term at least—sailings in 2021 will be limited.
But vacationers are plotting their comebacks. Recently a 180-day Oceania Cruise in 2023 sold out in one day after going on sale in late January. The ship Insignia will visit 96 ports in 33 countries. Sites and excursions include the Galapagos, wildlife game drives in Africa, ancient architectural treasures in India and giant pandas in China. Special events on board will highlight authentic local food.
Prices for Oceania’s “Around the World in 180 Days” top-tier cruise ranged from $45,999 per person for an inside stateroom to $159,999 per person for the Owner’s Suite. The tiered refund policy starts with a $500 cancellation fee (for a lower-priced room) if you cancel more than 180 days before, with increasing penalties as the departure date gets closer. And if you cancel less than three months before the sail date, you lose 100% of your fare.
Travelers could add additional days for extra cost.
So what do you do if you’ve just paid $160,000 for a cruise that’s two years away, or any other expensive trip in the future? Here’s how to protect your trip investment and purchase travel insurance for long-duration trips.
A Wave of Pent-Up Demand
Oceania says it attributes the rapid sellout to pent-up demand from both first-time guests and loyal returning customers who are eager to return to the waters on an Oceania cruise.
Although the line won’t share demographics, they did say that Oceania Cruises’ guests are, on average, age 55+ high net worth individuals and couples who are well-heeled travelers. In addition, 20% of the guests opted to extend their cruise beyond the 180-day voyage for up to 218 days.
Buying Travel Insurance for a Long-Duration Trip
There are many benefits to purchasing travel insurance for a long-duration trip like the Oceania around-the-world cruise. For any big-trip investment, you’ll want trip cancellation coverage in case something unexpected happens before your departure. To be covered, the cancellation must be due to a reason listed in the policy. If you make a claim, you can get reimbursed for prepaid and non-refundable trip deposits.
You’ll also want to check the maximum trip cancellation limits of the plan to see if the coverage is sufficient for the money you might lose if you cancel.
Perhaps the most important reason to buy a travel insurance plan for a long-term trip is the travel medical insurance and emergency medical evacuation coverage.
“Large cruise ships usually have medical staff on board, but if your condition is serious, you might have to get transported to a hospital on shore, which isn’t always easy when you’re in the middle of the ocean,” says Christina Tunnah, a spokesperson for World Nomads. “Emergency medical evacuation is essential here, as well coverage to help reimburse any out-of-pocket medical expenses for unexpected accidents or sickness. Your policy should cover the entire length of your trip. Medical expenses can really add up, no matter where you are in the world.”
The coverage in many travel insurance policies will max out at 90 days, so you’ll need to look for a travel insurance plan that can provide coverage for your long trip length.
For example, the Allianz Global Assistance OneTrip Premier Plan can cover a 180-day trip, including $100,000 in trip cancellation coverage and $1 million in emergency medical evacuation benefits. It also provides trip cancellation coverage in the event that there is a NOAA hurricane warning at your destination.
Some cruise-specific travel plans include inconvenience benefits that are triggered by some common issues that cruisers face, says Meghan Walch, a spokesperson for InsureMyTrip. This can include flight delays that cause you to miss your ship.
Beyond 180 Days
Travel insurance plans that can extend beyond 180 days include AIG Travel Guard Preferred and Deluxe (364 days) plans, Generali’s premium plan (364 days) and Berkshire Hathaway Travel’s LuxuryCare (364 days) and ExactCare (359 days).
Why Buying Travel Insurance Early Works in Your Favor
Purchase your travel insurance when you book your trip, advises Caitlin Murphy Gardner, a spokesperson for Cruise Planners. “This will give you the longest period of coverage possible for the same price. If you wait to purchase your insurance and in the meantime you become seriously ill or injured and need to cancel your trip, it will be too late to purchase insurance to cover that event,” she says.
And by purchasing coverage when you book the trip you’ll receive valuable travel insurance for pre-existing medical conditions.
Smart travelers always purchase their travel insurance when they book their trip as this gives them the longest period of coverage possible for the same price, says Murphy Gardner.
The main factors that impact travel insurance cost are age of the travelers, cost of the trip and length of the trip. The number of days between your travel insurance purchase and your departure date do not affect cost.
If the dates of your trip change, Murphy Gardner says your travel insurance provider should allow you to change the dates of your policy to match the new travel dates. “Also make sure you work with a travel agent who can help coordinate with your insurance provider if you add items to your itinerary later, such as shore excursions, so that you can have the option of covering these expenses with travel insurance,” she says.
Locking in Cancellation Flexibility
An early purchase will also give you the opportunity to add cancel for any reason coverage (CFAR), if your travel insurer offers it. This add-on coverage provides the most flexibility by allowing you to get reimbursement for money lost when you cancel for any reason—not just the reasons stated in the base policy. You can typically get 50% or 75% back, depending on the travel insurance company.
Since standard trip cancellation coverage does not cover cancellation due to fear of travel or because of future country lockdowns, CFAR may be the only way to recoup a portion of your prepaid non-refundable trip cost, says Walch at InsureMyTrip. “As you never know what could happen today, tomorrow or a year down the road prior to departure, CFAR can be helpful to protect your travel investment,” she says.
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