Cruise Travel Insurance - The Definitive New Zealand Guide

Updated 6 June 2023

Summary

Cruise travel insurance, or cruise cover, is tailored to address specific risks and issues that might occur during a cruise. This could include missed port departures or needing to be airlifted to a hospital if you fall ill at sea.
Cruise holidays are increasingly popular amongst New Zealanders, with the opportunity to wake up in a different place every day and experience the luxury of life at sea affordable and convenient for many. However, cruises are not without their risks, and if you fall ill or have an accident, the costs can be high - an 'all-inclusive' cruise won't cover medical costs.
As this Stuff article explains, even if your cruise is around New Zealand, you will likely enter international waters and be liable for any onboard medical costs. However, you can visit a local hospital if you have an accident on New Zealand soil.
Our view is simple: Having a cruise-specific travel insurance policy is essential for peace of mind and because many cruise operators require it before allowing you to board. And, if you compare providers, you can find good coverage at an affordable price and avoid overpaying, given the risk of a claim is usually quite low.
Boarding a cruise ship without travel insurance puts you at the mercy of the cruise operator. Consumer confirms this by stating that "once you’ve left port, the cost of medical treatment can be steep, particularly if you need to be flown from ship to shore for treatment. A comprehensive policy can help you navigate these rough financial waters".

To help explain the options, our guide covers the following:
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What Does Cruise Travel Insurance Typically Cover?

While the specifics can vary between insurance policies, common coverage includes:

Cruise cancellation or curtailment: If unforeseen circumstances, such as the death of a close relative or redundancy, cause your trip to be cancelled or cut short.
Missed departure: Cover in case issues like a car breakdown or strikes prevent you from making your departure.
Cruise interruption: If you become sick and need medical treatment on land, you can claim for the travel expenses to reach the next port and rejoin the cruise.
Cabin confinement: If you're asked to remain in your cabin due to illness to prevent the spread of disease to others on board, you can claim compensation.
Unused excursions protection: This provides coverage if you miss an excursion because of an accident, injury or illness. Typically, this covers excursions chosen when booking your cruise, not those booked once on board.
Missed port cover: Protection if a destination visit is cancelled due to bad weather or scheduling changes. This way, you'll receive compensation if you miss visiting a city or island you were looking forward to.
Personal baggage: Coverage if your luggage or its contents are lost or stolen. Cruises often require a variety of clothing, including formal wear, so make sure your baggage coverage is sufficient.
Emergency medical treatment costs: This should include emergency airlifts, hospital and ambulance fees, and coverage for your return home if you can't use your original ticket.

Know This: Policy costs and cover vary - always check the specific requirements of your cruise line, as some insist on minimum levels of insurance and medical cover.

Does Cruise Insurance Cover COVID-19?

Many cruise lines now insist on minimum insurance and medical coverage, including COVID-19-related issues. Essential inclusions include:

Cancellation: Are you covered if you or a travelling companion contract COVID-19 or have to self-isolate just before departure?
Curtailment: What is the policy if a relative at home becomes seriously ill or dies from the virus, and you need to cut your cruise short?
Medical and repatriation costs: What happens if you contract coronavirus while on your trip and require medical care?

LINK Video explainer of policies....

Cruise Travel Insurance for Pre-Existing Medical Conditions

If you have a significant health condition, your travel insurance will likely be more expensive. However, being honest with your insurance provider is important, as false information could lead to a rejected claim. For more serious conditions, you may want to contact specialised insurance providers who can provide quotes over the phone or through a personalised consultation.

Our guide to Travel Insurance for Pre-Existing Medical Conditions (LINK) has more details.

Getting the right cover for the right price
Ensure your insurance provides full coverage for the following:

The entire length of the trip
All the places you're visiting – if in doubt, opt for worldwide cover
The activities you'll be participating in

Our top three tips for choosing travel insurance for a cruise holiday

Check cabin confinement daily amounts: If you're confined to your cabin, you could receive a daily payment, but be aware of the overall cabin confinement cover limit. Some providers also cover the cost of missed excursions.
Find the right cancellation refund: Ensure the policy covers the cost of your cruise, as payouts can range substantially.
Choose the right cover limits: Some cruise providers insist you have at least NZ$1 million in medical cover to sail with them.

Comparing the Costs and Cover of Single Trip Cruise Travel Insurance Policies for New Zealand Travellers

Selecting the perfect travel insurance policy for a cruise can be complex, as needs and requirements can significantly differ between individuals. To aid you in this task, we've devised a few hypothetical scenarios involving typical cruise travellers from New Zealand.
These scenarios will help illustrate how varying factors can influence the pricing and coverage of single-trip cruise travel insurance policies.

Please note that these examples are purely illustrative, and actual premiums can greatly differ depending on several elements such as the specific insurer, the chosen coverage, personal health history, and other risk factors.

We encourage you to use these examples as a basic understanding. It's always advisable to obtain personalised quotes from multiple insurers for a more accurate estimation.

Our example cruise travellers:

Luxury Cruise Traveller: Consider Jay and Amy, 45-year-old profesisonals who loves luxury and plan a 21-day Alaskan cruise. We've assumed that they're both in good health, prefer destinations with lower travel risks, and seek a policy with high coverage limits for medical emergencies, cancellation, and baggage loss.
Family Cruise Holiday: Here we have the Smith family, a family of four (two adults in their 30s and two children under 10). They usually go on a 10-day cruise to the Pacific Islands, Australia and/or New Zealand once a year. We've assumed that they are in good health, seek comprehensive coverage, and prefer family-friendly benefits such as childcare and family emergency coverage.
Retired Cruise Enthusiasts: Let's look at the Browns, a couple in their early 60s who plan a 15-day European cruise to celebrate their retirement. We've assumed that they are in reasonably good health for their age, desire a comprehensive policy, and require high medical coverage due to their age.
Solo Cruise Adventurer: Consider Lucy, a 32-year-old solo traveller planning a 21-day Alaskan cruise. We've assumed that Lucy is in good health, seeks a policy with a low excess, and desires additional coverage for adventure activities onboard.
Budget Cruise Traveller: Finally, we have Jimmy, a 25-year-old planning a 15-day cruise through Asia on a budget. We've assumed that Jimmy is in good health, prefers a cost-effective policy, and seeks coverage for potential travel disruptions.

Important: Every traveller is different. It's always best to contact insurance providers directly or use online tools to get personalised quotes based on your specific circumstances and travel plans. Always read the policy documentation carefully to understand what is covered and what is not before deciding.

Our comparison looks at the following:

Policy Name/Provider: The name of the insurance policy and the company providing it.
Maximum Age Limit: Some policies have an age limit for coverage.
Medical Cover: The maximum amount the policy will pay for medical expenses.
Cancellation Cover: The maximum amount you can claim if you have to cancel or curtail your trip.
Personal Belongings & Baggage Cover: The maximum amount you can claim for lost, stolen, or damaged personal belongings and baggage.
Personal Liability: The maximum amount you can claim for legal liability if you injure someone or damage their property.
Travel Delay Cover: Whether the policy offers compensation if your travel is delayed and the maximum amount you can claim.
Excess: The amount you must pay out-of-pocket before the insurance pays out.
Price: The premium for the policy.

TABLES

Must-Know Facts and Considerations

1. Make Sure You Don't Have Overlapping Coverage

You may already have some travel insurance coverage through your credit card or an annual travel insurance policy (LINK). While this can be beneficial, it can also lead to overlapping coverage. Therefore, before buying any cruise-specific insurance, check to see if you have any other policies.

2. Cruising with Valuables Can Be Expensive

If you plan to bring valuables like expensive jewellery, electronics, or designer clothing on your cruise, make sure your cruise insurance provides sufficient coverage for personal items. Some policies have a low coverage limit for personal items, and you may need additional coverage. You can do this at the quote stage.

3. Consider Coverage for Extreme Weather

Cruising involves inherent risks, such as severe weather, cyclones and closed ports, which can disrupt your trip. When purchasing cruise insurance, consider coverage for delays or cancellations due to extreme weather.

4. Check Cruise Line Insurance Offerings

Some cruise lines offer their own travel insurance policies. These can be a convenient option, but they may not provide the same level of coverage as a standalone policy. Always compare coverage and prices before deciding which policy is right for you. LINK TO EXAMPLES

5. Consider Multi-Trip Insurance

If you go on several trips or cruises per year, consider purchasing annual or multi-trip insurance (LINK). This can provide coverage for all your trips within a year, which may be more cost-effective than purchasing individual policies for each trip.

Important: Before deciding and buying a policy, always read the policy's terms and conditions carefully to understand what is and isn't covered. We suggest comparing multiple policies and prices to ensure you get the best deal for your needs.

Frequently Asked Questions

Can I add insurance after booking a cruise?

Yes - waiting until after you've booked your cruise is often beneficial, as your cruise provider may have specific travel insurance requirements. Once you've booked your trip, arrange your insurance as soon as possible to cover any upfront costs if you need to cancel for a reason specified in your policy.

How close to a cruise can I buy travel insurance?

You may be able to secure cruise cover in the weeks or even days before your travel, but options may be limited. For peace of mind, we suggest organising your travel insurance as soon as possible for the benefit of cancellation cover. Be aware that many cruise providers require appropriate cruise cover and will ask you to check your policy documents before you board.

Can I get cruise travel insurance for the rest of my party?

Yes - you can include others in your cruise insurance. You'll need their dates of birth and details of any pre-existing medical conditions to get an accurate quote. Note a group premium will be affected by the ages and health of participants, so sometimes it may be cheaper to buy separate policies if someone has pre-existing conditions or is over 70+ etc.

Can I go on a cruise with a pre-existing medical condition?

Yes, but disclosing any pre-existing medical conditions is essential when applying for cruise cover. Otherwise, you might find yourself without cover. Our guide to buying travel insurance with pre-existing conditions (LINK) has more details.

Where can I compare cruise travel insurance quotes?

We suggest getting various online quotes - our sample pricing can be found here (LINK).

What should I do if I become ill on a cruise?

If you become ill while on a cruise, you should immediately contact the ship's medical facility. They are equipped to handle a wide range of medical situations on board. You should also notify your travel insurance provider as soon as possible to make them aware of the situation.

What happens if I have to cancel my cruise last minute?

If you have to cancel your cruise at the last minute due to an emergency or unforeseen circumstance, your cruise travel insurance should provide coverage, provided that the reason for cancellation is covered under your policy. Ensure you understand the policy's fine print and know what circumstances are covered.

Does my cruise insurance cover off-ship excursions?

This can vary by policy. Some cruise insurance policies cover off-ship excursions, while others do not. Be sure to read your policy thoroughly and confirm with your insurance provider if unsure.

Is cruise insurance the same as travel insurance?

While similar, cruise insurance is a specific type of travel insurance that covers unique issues related to cruises, such as cabin confinement, missed port departure, and emergency airlifts from the ship.

What if the cruise line goes bankrupt or cancels the cruise?

Most comprehensive travel insurance policies provide coverage if the cruise line goes bankrupt or cancels the cruise. However, policies vary, so read the terms and conditions carefully.

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