You book a cruise or tour, then wonder what might happen if an emergency forces you to cancel. There are travel-insurance policies designed to cover just about any circumstance that could derail a trip.
You book a cruise or tour, then wonder what might happen if an emergency forces you to cancel. There are travel-insurance policies designed to cover just about any circumstance that could derail a trip. When it comes to protecting yourself against a cruise line or tour company on shaky financial ground, things get more complicated. "Financial default is the big gotcha," says Jim Grace of InsureMyTrip.com, a website that compares and sells travel-insurance policies.
Best advice: Pay with a credit card. If you buy travel insurance, skip policies sold by cruise lines and tour operators, and buy directly from a third-party insurer that will cover the financial default of the travel company. Paying for travel with a credit card is the No. 1 rule. Under the federal Fair Credit Billing Act, credit-card charges can be disputed up to 60 days after you receive your first bill. Many card issuers extend that to 120 days. Most Visa and MasterCard issuers offer a delayed-delivery clause that gives cardholders 120 days to file a claim starting from the time a service was to be delivered (the date the cruise, tour or flight was to depart). Policies sold by companies such as Access America, Travelex or Travel Guard offer various levels of coverage. The cheapest cover refunds if you cancel due to do a medical emergency or death in the family. More expensive plans cover other reasons, often including supplier default.
Consult a travel agent or a website such as www.insuremytrip.com, which sells and compares many travel insurance policies. Call the insurer, ask questions and read the policy. Travel insurance is notorious for its loopholes. Knowing which companies insurers exclude from default coverage is one way to understand which ones might be having problems
