“I don’t need travel insurance. I’m not planning to cancel.”

I hear this one a lot.

And honestly, I understand the thinking. If you’re planning to take your vacation, why would you need insurance?

But here’s the thing: travel insurance isn’t just about getting your money back if you decide you can’t go.

What happens if you get sick before your trip? What if you have an accident while you’re traveling? What if you have to cut your trip short because of an emergency at home? What if your flight is delayed and you miss your cruise? What if your luggage disappears?

Or—and this is one I really want cruise travelers to think about—what happens if you need medical treatment while you’re traveling?

That’s when the conversation about travel insurance gets a lot more important.

Your Regular Health Insurance May Not Follow You

One of the biggest assumptions I see is, “I have health insurance, so I’m covered if something happens on my vacation.”

Maybe.

But you need to check.

Your personal health insurance may provide some coverage outside the United States. Most DO NOT.

Every plan is different.

The U.S. Department of State recommends checking with your health insurance provider before traveling to understand what medical services are covered outside the United States. Medicare and Medicaid generally do not cover medical care outside the United States, with limited exceptions.

So don’t assume.

Call your insurance company and ask.

And don’t just ask, “Am I covered internationally?”

Ask specific questions.

Am I covered for emergency medical care outside the United States? Am I covered while traveling on a cruise ship? What happens if I have to be taken to a hospital in another country? Do I have to pay the bill myself and submit a claim? Is emergency medical evacuation covered? Are there any exclusions or limits I need to know about?

Those answers can be very different from what you might expect..

Here’s Something Many Cruise Passengers Don’t Realize

A cruise ship isn’t your doctor’s office back home.

If you need medical care onboard, don’t expect to hand the medical staff your regular health insurance card and have the cruise line bill your insurance company.

I know of no Cruise line that directly accepts and bills land-based health insurance plans. I’m hesitant to say none do, but if anyone is aware of one; please let me know.

Norwegian Cruise Line, for example, specifically states that onboard medical services are not included in the cruise fare, medical fees are billed to your stateroom account, and direct insurance billing is not available. NCL provides an itemized receipt for possible insurance reimbursement.

Carnival says its medical charges are billed to the guest’s Sail & Sign account and that an itemized receipt and medical information can be provided for submission to health or travel insurance for possible reimbursement. Carnival also states that it cannot directly bill your insurance plan.

Royal Caribbean is even more direct. It says it does not accept land-based health insurance plans onboard, although guests may be able to submit their medical bills and records to their insurance provider afterward for possible reimbursement.

So if you need to see the ship’s doctor, the process can look something like this:

You receive treatment → the medical charge goes onto your onboard account → you pay the charge → you receive your receipt and medical records → you submit a claim to your insurance company if your policy provides coverage.

That’s an important distinction.

Having insurance doesn’t necessarily mean you are not going to be out of pocket the expense up front and have to file the claim when you get home. It is EXTREMELY IMPORTANT to get copies of all bills, receipts and treatment records (with medical codes) BEFORE leaving the ship or overseas medical facility. These WILL BE required to file your claim and are very difficult to get after you have returned home.

And you should be prepared that most likely you’ll need to pay the medical bill before leaving the ship.

What If It’s More Than a Visit to the Ship’s Doctor?

This is where things can get serious.

Maybe you need treatment that the ship can’t provide.

You could be taken ashore to a hospital. You could need additional hotel nights. You might have to change your flights. And in a serious situation, you could need medical transportation or evacuation.

Those expenses can add up very quickly.

The U.S. Department of State specifically recommends considering medical evacuation coverage because many regular health insurance plans do not cover the cost of bringing you back to the United States by air ambulance or other specialized transportation.

That’s why I don’t like hearing, “I don’t need travel insurance because I already have health insurance.”

Maybe you do have enough coverage.

But you need to know exactly what that coverage is before you leave home.

Cruise Insurance and Travel Insurance Are Not the Same Thing

Here’s another area that can get confusing.

You book a cruise and the cruise line offers you a travel protection plan.

Or you can purchase a policy from an independent travel insurance company.

So which one should you buy?

There isn’t a one-size-fits-all answer.

The important thing is to understand what you’re actually buying.

One thing I always tell people is to look at the entire trip—not just the cruise.

For example, if you’re flying to Miami the day before your cruise and paying separately for your hotel and flights, don’t automatically assume that a cruise-line protection plan covers every part of that trip.

Most cruise-line protection plans are built primarily around the cruise vacation itself and may have specific rules about what travel arrangements are covered.

If flights, hotels or other travel arrangements are part of a cruise package purchased through the cruise line, those arrangements may be treated differently and are most likely covered.

Generally, a Cruise Line insurance policy has cancelation coverage beginning at payment and within the Cruise lines Cancelation penalty period. All other coverage (trip interruption, delay, etc.) normally begins on your departure date.

That’s why you need to read the actual policy.

A comprehensive third-party travel insurance policy may be designed to cover a broader portion of your trip, depending on the policy you choose.

Again…

Read the policy.

Don’t assume.

And Here’s Another Important Difference

Most (Not all) travel insurance works on a reimbursement basis.

In simple terms:

You pay first. Then you file a claim. Then the insurance company determines whether the expense is covered and, if it is, reimburses you according to the policy.

Not every policy works exactly this way, and there are situations where an insurer may arrange or make direct payments.

But you should never assume that having a policy means you won’t have to put money out of your own pocket.

That’s particularly important when you’re talking about medical care.

If you need medical treatment onboard a cruise ship, you may be paying that medical bill through your onboard account and then submitting the appropriate documentation to your insurance provider afterward.

Cruise lines can provide documentation such as itemized bills and medical records to help you file a claim. Do not leave the Cruise ship without these copies and records as they are Very difficult to attain after you depart and will be required to file a claim.

So when you travel, don’t just carry your insurance card.

Know:

• Who do I call?

• What does my policy cover?

• What are my coverage limits?

• Do I have to pay first?

• What paperwork will I need to submit a claim?

Those are much better questions to answer at home than while you’re standing in a ship’s medical center.

What Should You Look For in a Travel Insurance Policy?

Every traveler is different, but there are some things I think are worth paying particular attention to when comparing policies.

Emergency medical coverage is an obvious one. Emergency medical evacuation is another. You’ll also want to look at trip cancellation, trip interruption, baggage loss or delay, travel delays, and additional hotel or transportation expenses.

If you have a pre-existing medical condition, you’ll also want to understand exactly how the policy handles it. Different policies can have different definitions, exclusions, requirements and waiver provisions.

And don’t just look at the dollar amount.

Look at the rules behind the coverage.

A policy with a higher medical limit isn’t automatically the right policy for your particular trip if it doesn’t cover the situation you’re concerned about.

Travel insurance policies can have exclusions, conditions, deductibles, coverage limits and specific requirements for filing a claim. Pre-Existing condition coverage is a big one to understand with any policy.

That’s why I always encourage travelers to read the actual policy documents before purchasing.

My Biggest Piece of Advice

Don’t wait until something goes wrong to find out what your insurance does.

Before you leave home, take a few minutes and figure out what happens if you get sick, what happens if you need a hospital, what happens if you have to leave the cruise early, what happens if you can’t get home as planned, and what happens if you need to be medically evacuated.

And perhaps most importantly, ask yourself:

Who is paying the bill first?

Hopefully, you’ll never need to use any of it.

That’s the goal.

But if something unexpected does happen, you’ll be very glad you took the time to understand your coverage before you left home.

Because travel insurance isn’t about expecting your vacation to go wrong.

It’s about having a plan if it does.

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One Last Thought

I don’t believe travel insurance should be an automatic “yes” or “no” decision for every traveler.

I do believe it should be an informed decision.

I always purchase Travel insurance for my trips. Sometimes thru the Cruise Line, sometimes through a third party and on occasion both. I have made cancelation claims with Cruise policies as well as third party policies and had the claims paid quickly in all cases because I had all of the required paperwork and proof when I filed.

Most (not all) online complaints you see in Facebook forums about travel insurance policies and difficulty getting them to pay out are because the person did not file the required paperwork. The policy states what is and what is not covered, if you submit documents showing an expense for a covered event they are going to pay it.

Understand your existing health insurance. Understand what the cruise line’s protection plan actually covers. Understand what a third-party travel insurance policy covers. Understand the difference between cruise-only coverage and coverage that may protect your entire trip. And understand whether you’re likely to pay expenses first and seek reimbursement later.

Once you know those things, you can make the decision that’s right for you.

That’s a much better approach than simply saying, “I don’t need it.”

Or, “I’ll just buy whatever the cruise line offers.”

A few minutes of homework before you leave can save you a whole lot of stress if something unexpected happens while you’re away.

Travel often and Travel well, my friends.

John Urton