Travel Insurance vs. Travel Protection - Cruise Line Fans: Cruise Forum, Reviews and Chat From Real Cruisers

Cruise Planner · 08-14-2008, 08:47 PM

We've talked alot about travel insurance and it's something I always recommend. But I highly recommend it under these circumstances:

1) Traveling during the Winter - obvious travel delays.
2) Traveling during hurricane season - doesn't need explanation.
3) Anytime traveling to Europe - lots of lost baggage and possible health problems.
4) Traveling with children - common illnesses and injuries that can occur before or during the trip.
5) Traveling with seniors - as with children, there's a higher possibility of illness or injury.
6) Traveling with pre-existing health conditions - could crop up before or during the trip.

I always look at buying travel insurance that I hope it's a waste of my money, because if I need it, then it's usually not a good thing. It's always best to have it and not need it, than need it and not have it.

A friend of mine who's a travel agent had a client who's worse-case scenario became reality. The client's husband had a heart-attack and ended up in a foreign hospital where he was in a coma for a month before he died. Total bill was around $100,000! Luckily, she had travel insurance and was covered for all the expenses.

So, there's no question that we always purchase the travel insurance whenever we travel and hope we never need it.

But the one thing that no one talks about is the difference between travel protection versus travel insurance.

What's the difference? It can be huge!

Do not buy travel protection - it's not the same as travel insurance. Don't assume that what you are buying from your agent is travel insurance. Make sure you read the policy before you buy it and find out if it will cover you in situations that might arise.

Here's a story on our local news that I thought would help explain it:

Travel Insurance - 11 p.m.: 8/12/08 - Consumer News Story - WRC | Washington

It's about a couple who purchased travel protection through their travel agent with their Mediterranean cruise worth over $6800. The husband injured his knee playing golf and had to have surgery and they had to cancel their trip. Even though they had all the documentation from their doctor showing he had to have the surgery, this was considered 'elective surgery' by the travel protection company, they lost all their money. And because this was not sold or advertised as travel 'insurance', there was nothing the State insurance commission could do about it.

Bottom line, always buy travel insurance not travel protection, but ask questions, read the policy, and make sure you know exactly what you are getting.

Pete

Cruise Planner · 08-25-2008, 09:46 PM

Just an update on the post I made on this subject; the link I used is no longer valid as they only keep stories on their site for a few days. But the synopsis I wrote below the link describes what was in the story.

Pete

sk8erguy1978 · 08-29-2008, 01:29 AM

Thanks for that tip. Any recommendations on companies. Ones that you know are not BS or "fly by night" companies.

Also if travel protection was purchased by mistake - is this something that might be easily refunded through your TA or does it depend on the company they used.. Since a "No Refund" policy might be in affect..

If there is a No Refund policy can you still insure your trip, like have more then one policy on your trip?

Cruise Planner · 08-29-2008, 02:44 AM

There are many good companies out there, but there are also some that are not so good. Our company has fired a few of them because either their policies were not that good or their customer service was not up to our standards. A couple of these are 'big name' companies, so don't automatically assume that because the company is well-known that they provide the best bang for the buck.

Alot of people recommend going to insuremytrip.com to check out travel insurance. And this is a good site to compare prices and coverages, but it's not a site that rates the companies or recommend one over another.

Currently, we sell policies from 3 different companies (all travel insurance, none of them travel protection). We lean more towards Travel Safe over the others because of their customer service and their pricing. We've used them for 7 years and have had excellent results with them.

Keep in mind that agents make a commission on travel insurance. Some companies pay more commission than others, so they often charge more in order to make up for it. However, when you look at the coverage and the limits, you'll often find the higher price is not warranted. In other words, you cannot judge a policy by how much it costs.

My best advice is to talk to your agent, check out the policy and the company, compare the prices and policies with other companies, and make an informed decision. But do not assume that your agent is selling you travel insurance as it could be travel protection.

As for cancelling the policy, some companies allow you to cancel within a few days after purchashing and get a full refund. But if it's been more than a few days, you're out of luck. You've purchased a product and refunds are usually not provided if cancelled. Check your policy for specifics.

There's nothing that says you can't buy more insurance, but then you could get into problems with double coverage should any claims be filed since you have to provide statements/documentation that your claim is not being paid by another entity. But if one policy won't pay, then the other might - depends on the policies and the coverages.

Pete

sk8erguy1978 · 08-29-2008, 01:45 PM

All what I thought, but I honestly did not know there were two different types of travel policy... So, I started to worry for people who might have bought what they did not want after they read the documents closely..

But, then again, that is why I am given dirty looks, I read everything before my signature hits it, including a receipt at shop rite...

Thanks for all this useful information and professional advice

Cruise Planner · 06-30-2009, 03:22 PM

Here's another article that shows why you need to be careful and make sure you buy travel insurance and not travel protection.

http://www.nytimes.com/2009/06/28/yo...?_r=1&emc=eta1

Pete

Char · 06-30-2009, 04:36 PM

And it shows how companies can try to intimidate folks who submit a claim for what they had been led to believe was insurance that would reimburse them in cases of sickness and death.

Cruise Planner · 06-30-2009, 05:21 PM

Just goes to show you can't trust anyone - do your homework and make sure you're getting what you bargained for!

But I found it very interesting that the travel company actually released a copy of the digital conversation! I'm really surprised they didn't 'accidently' erase it so there was no proof of the conversation. And according to the story, the travel company was selling their own travel protection instead of acting as an agent for a travel insurance company - this in itself should send up a huge red flag. At the very least, they should have gotten the insurance provided by the cruise line instead of something offered only by the travel company.

Pete

MD11F · 07-01-2009, 04:48 AM

Pete, have you used Travel Insured International, and if so, what is your opinion of then from your experience?

Cruise Planner · 07-01-2009, 01:15 PM

I'm not familiar with that one. There was one company called ITravel Insured that Cruise Planners fired, but that appears to be a different company.

Perhaps others have some experience with them.

Cruise Planners use to have several companies they were doing business with, but had problems with some of them. They narrowed it down to about 4 preferred companies, but then last year decided to go with one company and try to make it easier for everyone. Not real happy with that decision, but then they never ask my opinion. lol

There are some very good companies out there; just have to find the one that works best for you. Let me know how it goes - hope it works out well.

Pete