Travel Insurance 101 – Do You Need It for Your Cruise or Tour?

Travel insurance is a policy designed to protect you against the financial risks of traveling. Depending on the coverage, it can reimburse you if you have to cancel a trip, cover medical expenses if you get sick or injured while traveling, or even pay for emergency evacuations and lost baggage.

In simple terms, it helps safeguard both your trip investment, such as prepaid cruises or tours, and your well-being while you are away.

For example, if you need to cancel a non-refundable cruise due to illness, travel insurance may be able to reimburse you for the money you would lose. Or if you get sick onboard and require medical care or evacuation, your policy can potentially cover the costs.

Typically, travel insurance costs about 4% to 10% of your total trip price, depending on your age and the coverage level. Considering that a single medical emergency or last-minute cancellation can cost thousands, many travelers view it as money well spent for peace of mind.

1. Trip Cancellation & Interruption: If you have to cancel before departure or cut your trip short for a covered reason such as illness, injury, or family emergency, this coverage reimburses your non-refundable expenses. It can also cover unused portions of your trip and extra transportation costs to get home early.

2. Emergency Medical Coverage: This covers doctor and hospital bills if you get sick or injured during your trip. Many health insurance plans, including Medicare, do not fully cover international or cruise-related care. Having this protection can save you tens of thousands in out-of-pocket expenses.

3. Emergency Evacuation & Repatriation: If you need to be airlifted or transported to a hospital during a medical emergency, evacuation coverage pays for it. These services can cost anywhere from $25,000 to $250,000 depending on your location.

4. Travel Delay or Missed Connection: If your flight is delayed or canceled and causes you to miss your cruise or tour, this coverage reimburses extra expenses like hotels, meals, or alternate transportation.

5. Baggage Loss or Delay: If your luggage is lost, stolen, or delayed, this coverage pays for replacements or essentials until your bags arrive.

6. 24/7 Travel Assistance: Most plans include a global hotline you can call for help with medical referrals, translation, lost passports, or emergency arrangements.

You can also add optional extras like rental car coverage or “Cancel For Any Reason” protection, which lets you cancel for personal reasons and still get partial reimbursement.

You do not need insurance for every trip, but there are times when it is strongly recommended.

International Trips: Most domestic health insurance plans do not cover you abroad. If you get sick overseas or on a cruise, medical bills and evacuation costs can be enormous. For international travel, medical and evacuation coverage is a must-have.

Cruises: Cruises combine international travel with unique risks. If you miss your embarkation due to a delayed flight, or need emergency medical care at sea, travel insurance can be a lifesaver. It can also cover missed connections, onboard medical care, or cancellations due to illness.

Expensive or Non-Refundable Tours: If you have prepaid thousands for a luxury tour or resort stay, cancellation coverage is key. If something unexpected happens such as illness, injury, or a natural disaster, insurance can refund your investment.

Adventure or Remote Travel: If your trip involves high-risk activities like scuba diving or hiking in remote areas, make sure your plan includes adventure coverage and evacuation benefits.

There are times when travel insurance might not be necessary.

• Short or Inexpensive Trips: If you are taking a quick, low-cost getaway and have little prepaid money at risk, it may not be worth the extra cost.

• Flexible or Refundable Bookings: If your airline, hotel, or tour allows free cancellations or date changes, trip cancellation coverage will not add much value.

• Existing Coverage: Some credit cards include built-in travel protections when you book with the card, such as trip interruption, baggage coverage, or rental car insurance. Check your card’s benefits before buying a separate policy.

• Self-Insurance: If you can afford to cover potential losses out of pocket, you may choose to skip coverage entirely.

You can buy travel insurance through:

• Reputable providers such as Allianz Travel, Travel Guard (AIG), Generali, AXA Assistance, or World Nomads

• Comparison websites such as InsureMyTrip or Squaremouth

• Cruise lines and tour operators, which often offer their own policies during checkout

• Credit card programs, if you pay for your trip using a travel card with insurance perks

Always compare plans and read the fine print to understand what is included and what is not.

Ask yourself:

• How much would I lose if I had to cancel?

• Would my health insurance cover me abroad or at sea?

• Could I afford an emergency evacuation?

If the answer to any of these makes you uneasy, travel insurance is probably worth the investment.

Think of it as your vacation’s safety net, something you hope you will not need but will be incredibly glad to have if things do not go as planned.

Travel insurance is not just about protecting your money; it is about protecting your peace of mind. Whether you are setting sail on a cruise, joining a guided tour, or heading overseas, it ensures that unexpected events do not turn your dream trip into a financial or logistical nightmare.

Before your next adventure, talk to your Personal Travel Advisor at Avoya Travel about which coverage options fit your plans best. They can help you choose the right policy, compare providers, and make sure your vacation is as worry-free as possible.