Travel Insurers

Travel insurance is the best way to protect yourself against financial loss. The most useful plan is a comprehensive policy that includes coverage for trip cancellation-and-interruption, cruise line default, trip delay (including missed cruise connections), and medical expenses (with a waiver for preexisting conditions).

Without insurance you will lose all or most of your money if you cancel your trip, regardless of the reason. Should your cruise line go out of business, default protection will reimburse you for any payments you've made -- or pay to get you home should you find yourself stranded. Another way to protect yourself is to book with a line that belongs to the United States Tour Operators Association (USTOA, 342 Madison Ave., Suite 1522, New York, NY 10022, tel. 212/599-6599 or 800/468-7862, fax 212/599-6744), which requires members to maintain $1 million each in an account to reimburse clients in case of default.

Trip-delay provisions will cover unforeseen expenses that you may incur due to bad weather or sometimes mechanical delays. It's important to compare the fine print regarding trip-delay coverage when comparing policies.

For overseas travel, one of the most important components of travel insurance is its medical coverage. Supplemental health insurance will pick up the cost of your medical bills should you get sick or injured while traveling. U.S. residents should note that Medicare generally does not cover health-care costs outside the United States, nor do many privately issued policies.

Always buy travel insurance directly from the insurance company; if you buy it from a cruise line that goes out of business, your default coverage will be invalid.

In the U.S., Access America (6600 W. Broad St., Richmond, VA 23230, tel. 804/285-3300 or 800/284-8300, fax 800/346-9265); ASA Inc. (12223 S. 45th. St., Phoenix, AZ 85044-2415, tel. 888/ASA-8288 or 480/753-1333, fax 480/753-1330); Customized Services Administrators (CSA; P.O. Box 939057, San Diego, CA 92193-9057, tel. 800/873-9855); International Medical Group (IMG; 407 Fulton St., Indianapolis, IN 46202, tel. 800/628-4664 or 317/655-4500, fax 317/655-4505); TravelGuard International (1145 Clark St., Stevens Point, WI 54481, tel. 715/345-0505 or 877/216-4885, fax 800/826-0838).

In Canada, Royal Bank Financial Group/RBC Life Insurance Company (tel. 800/565-3129 from US & Canada or 905/799-4930 collect from anywhere, fax 905/791-5807); Travel Insurance Coordinators (#300 - 2609 Westview Dr., North Vancouver, BC, Canada V7N 4M2, tel. 604/986-4292 or 800/663-4494, fax 604/986-5797).

Cancellation

Your entire deposit or payment may be refunded if you cancel your reservation between 45 and 75 days before departure; the grace period varies from line to line. If you cancel later than that, you will forfeit some or all of your deposit. An average cancellation charge is the deposit amount 30 to 45 days before sailing, 50% of the fare between 15 and 30 days prior to departure, 75% of the fare between 7 and 14 days ahead of sailing, and often 100% of the fare 7 days or less ahead of time. If you simply fail to show up when the ship sails, you will lose the entire amount. The sales cancellation policies of most cruise lines are available at the i-cruise.com. Many travel agents also assess a small cancellation fee.

Deposit

Most cruises must be reserved with a refundable deposit of $100-$600 per person, depending upon how expensive and how long the cruise is, due generally within seven days of making the reservation; the balance is due 45-90 days before you sail. If the cruise is less than 60 days away, however, you may have to pay the entire amount immediately.

Payment

Once you have made a reservation for a cabin, you will be asked to put down a deposit. Handing money over to your travel agent constitutes a contract, so before you pay, review the cruise brochure to find out the provisions of the cruise contract. What is the payment schedule and cancellation policy? Will there be any additional charges before you can board your ship, such as transfers, port fees, or local taxes? If your air connection requires you to spend an evening in a hotel near the port before or after the cruise, is there an extra cost?