Can Travel Insurance Help if a Cruise is Cancelled?
When you choose a cruise as your next vacation, you sign up for a floating hotel that moves you from one incredible port to the next. But beneath the unlimited buffets and endless sea views lurks an inconvenient reality — cruise cancellations happen more often than most travelers expect.
Weather can turn on a dime. Engines can malfunction. Cruise lines make last-minute itinerary shifts that put a wrench in your plans. And sometimes you can be the reason the trip is derailed, especially if a family emergency, a sudden illness or curveballs at work come into play.
The good news? Cruise travel insurance can help keep you afloat financially, even when your cruise doesn’t go to plan. Let’s break down how cruise line cancellation policies work, what travel insurance actually covers and how to choose the right protection before you board your ship.
How Cruise Line Cancellation Policies Work
Cruise insurance is a form of financial protection from unexpected events that can apply before and during a cruise, such as an unexpected cancellation or a medical emergency. Since individual cruise lines make their own rules, each cruise refund policy is unique. However, most follow the same general structure:
- As your departure date gets closer, the cancelled cruise compensation you’re entitled to gets smaller.
- At a certain point (often 14 to 30 days before departure), you’re locked into a 100% penalty with no hope of a refund at all.
- Some cruise lines offer cruise vouchers for future travel instead of a cash refund, depending on the specifics of the cancellation.
- Cancellation policies for longer cruises are typically more strict compared to short cruises.
Additional fine print abounds. For example, many cruise lines (like Princess) used to let travelers lock in a cruise and cabin with a refundable deposit. However, cruise deposits with Princess are no longer refundable unless guests upgrade their booking to have a refundable deposit for an additional fee.
Other hidden terms to watch out for regarding cancelled cruise compensation:
- Cruise “extras” like excursions, spa appointments and specialty dining usually fall under separate terms.
- Some promotional fares are “use it or lose it,” meaning they are non-refundable.
- Most cruise lines let you cancel by phone, but a few still require written notice.
- Changing a traveler’s name (beyond fixing a simple typo) may be treated as a full cancellation.
- Cancellation penalties can vary for the third and fourth guests sharing a cabin.
Refunds vs. Cruise Vouchers
When a cruise must be cancelled, the biggest difference between relying on the cruise line and your own travel insurance is how your refund is issued. Travel insurance reimburses you in real dollars, while cruise lines typically compensate you with cruise vouchers or “future cruise credits (FCCs).”
While cruise vouchers may not sound that bad and some come with “bonus value” that make them worth more than you originally paid, the devil is in the details. Not only can future cruise credits (FCCs) only be used toward another cruise with the same company, but many have strict expiration or “sail-by” deadlines that mean you could lose the entire value if you can’t rebook in time. They also can’t always be transferred to someone else. And if your next cruise ends up costing more (which is increasingly common), you may have to pay the difference out of pocket. If the next trip is cheaper, you might lose any leftover credit.
Beyond these sticky rules, a cruise line’s compensation only covers what you booked with them. Travel insurance, on the other hand, covers your entire trip including flights, hotels, transfers, excursions and other prepaid, non-refundable expenses. Cruise cancellation insurance also comes with additional protections like Trip Interruption coverage, Emergency Medical coverage, Medical Evacuation & Repatriation insurance and more.
What Travel Insurance Covers When a Cruise is Cancelled
Cruise insurance purchased through a travel insurance provider can reimburse up to 100% of prepaid, non-refundable trip expenses if a covered reason like an injury or illness forces you or the cruise line to cancel before you depart. This means you can get money back instead of a voucher.
“Prepaid and non-refundable” refers to any part of your trip you’ve already paid for but aren’t able to get refunded directly from the provider:
- Flights
- Hotels
- Cruise fares
- Missed tours and excursions
- Transfers
- Prepaid packages
Now imagine you have to cancel your cruise after your trip begins, which can happen due to bad weather, a mechanical breakdown, medical emergencies on board and more. In that scenario:
- You can be reimbursed for the unused portion of your trip, and
- Your policy can pay to get you home, including last-minute flights, ferries or additional hotel nights needed during the disruption.
A cruise line is only responsible for delivering what it sells you. Travel insurance helps with everything else.
Types of Cancellations Cruise Insurance Can Cover
Travel insurance for cruise cancellations can step in when your cruise is cancelled, shortened, or affected by unexpected events. Covered reasons vary by provider, but common examples include:
- Medical reasons: Coverage can apply if you, a family member or other traveling companions become ill or injured before or during a trip.
- Severe weather: Travel Insurance can apply when hurricanes, tropical storms and other severe weather impact your trip or your itinerary.
- Financial default: Coverage can apply if your cruise line goes out of business and stops issuing refunds for cancelled cruises.
- Covid-19 sickness: Travel insurance can pay for emergency medical bills, quarantine and other expenses if you become sick during a trip.
- Terrorism events: If terrorism prevents you from reaching your destination or embarking on your cruise, travel insurance can come into play.
- Unexpected employment layoff: Some travel insurance plans will reimburse you if a sudden layoff means you need to stay home.
- Work-related cancellations: You may be eligible to file a claim if work-related reasons keep you home, such as an employer revoking time off or you have to relocate your home residence for work reasons.
When to Consider Cancel For Any Reason (CFAR)
Worried you won’t be able to cruise? Maybe you’re concerned the reason you may need to cancel won’t be covered by your cruise insurance policy. Paying for additional Cancel For Any Reason coverage can help you get 50% to 75% of your prepaid travel expenses back if you need to cancel your trip for any reason at all — even if you just don’t feel like going.
Just remember that some fine print applies with CFAR coverage as well. For example, insurance that lets you cancel for any reason typically must be purchased within 14 to 21 days of your trip deposit date. You must insure 100% of your prepaid travel expenses with this coverage, and you usually need to cancel your trip in its entirety at least 2 to 3 days before travel for this insurance to work.
How to File a Claim if Your Cruise is Cancelled
The process for filing a travel insurance claim is fairly straightforward, but it requires organization. The following steps can help you apply for cancelled cruise compensation from your travel insurance provider.
Step 1. Contact your provider as soon as possible
Note that most travel insurance companies require you to file claims within a specific amount of time after a loss, usually within 30 to 90 days. To ensure you don’t miss the deadline — and to get your refund as quickly as possible — reach out to your cruise provider as soon as you can.
Step 2. Save every receipt and document
Make sure to keep all documentation related to your cruise and the cancellation, as well as receipts for everything you pay before and during a trip. This includes:
- Booking receipts
- Cancellation notices
- Proof of payment for your cruise
- Screenshots of any online statements
- Medical records if applicable
- Receipts for unexpected expenses related to your cruise cancellation or interruption, including receipts for meals, hotel stays and transfers
- Police reports (if applicable)
- Travel itineraries
Step 3. Document all communication with your cruise line
Make sure to save all communication with your cruise line as well, especially if the company is trying to offer you a cruise voucher instead of a refund. Your travel insurance company will need to verify you can’t get your money back from the cruise line before they can process your claim.
This means saving the following:
- Emails
- Chat logs
- Refund or voucher offers
- Policy explanations
Step 4. Complete a claim form
Your insurer will usually ask you to complete a formal claim form. Since accurate details and thorough documentation help avoid delays, spend extra time ensuring it’s filled out correctly. Make sure to attach every relevant receipt and record in your possession.
Step 5: Submit the claim
After the claim form is finished, submit everything to your provider. Most companies let you file by email, traditional mail or an online claims portal. Keep copies of every document you send for your own files.
Step 6: Monitor your claim
Insurers often follow up for extra paperwork or clarification, so stay alert and reply promptly if the company reaches out. And if your claim is denied, remember that many providers offer an appeals process.
Step 7. Be diligent but patient
Claims adjusters need time to verify every part of your documentation. The process can feel slow, but it’s worth it when your refund comes in cash instead of a cruise voucher.
Visit Squaremouth’s travel insurance claims center for a more detailed breakdown of how to file a claim.
Tips for Choosing the Right Cruise Cancellation Plan
While travel insurance is a “must have” for cruises and other types of trips, not all plans are created equal. Some cruise insurance policies offer superior coverage or benefits, and certain add-ons can beef up your protection even more.
Consider the following tips to get the best cruise travel insurance for your budget and your needs.
- Look for generous hurricane and weather coverage. If you’re considering a cruise in the Caribbean or anywhere with unpredictable weather, you should pay special attention to travel insurance coverage for bad weather. The best plans kick in after just a 6-hour delay of your cruise, flight or port, meaning you’re covered for short disruptions and not just major storms.
- Make sure coverage for travel delays is solid. Travel Delay insurance should cover delays caused by any common carrier including cruise ships, planes, trains and ferries. You don’t want to be stuck footing unexpected hotel or meal bills for reasons beyond your control. If your trip is delayed long enough, travel delay insurance can cover costs required to cancel your trip altogether.
- Check medical coverage limits. You need coverage that lets you cancel your vacation if you become sick or injured before your scheduled travel date or after your trip begins. If you are unable to continue your trip, your policy should pay for unexpected medical bills that arise and costs required for you to get home for care. You can also be reimbursed for unused portions of your cruise vacation you never got to enjoy.
- Consider Cancel For Any Reason (CFAR) coverage. If you want the option to cancel your vacation over a work hiccup, a family squabble or any other change in plans, CFAR coverage is the way to go. It typically reimburses 50% to 75% of your trip cost, even if you just decide to stay home.
- Shop around. While cruise lines offer their own limited insurance options when you book a cruise, coverage from third-party companies includes broader protection, higher benefit amounts and coverage for all components of your trip including flights, hotels and tours. Comparing travel insurance options on Squaremouth can save you money and give you peace of mind.