Unfortunately, no one but the owner knows the liquidity of a specific cruise line. If a cruise line goes bankrupt, you will be left on shore with a worthless certificate. With these tough economical times, cruise lines are selling less cabins than last year. To be safe, you should purchase a travel insurance policy that includes the failure of a line as a covered peril. These policies are bought on a per-trip basis and are priced as a percentage of the total trip cost--usually about 5% to 7%.
You should consider the following items before buying such a policy:
1. Don't buy the policy directly through the cruise line. If the cruise line goes under, the policy will not pay off.
2. Be careful when you pay for the travel insurance policy. Many policies require that you purchase it before 15 days of making the initial payments on the trip. If this is not followed, the policy will be worthless. If you hear the cruise line is in financial trouble after you are making the payments, it will be too late to purchase the policy.
3. Be sure the policy includes coverage in the case of financial default. Not all do. Look under the "trip cancellation benefits" section of the policy's fine print.
Since you are paying a lot of money for your cruise, the small amount of money this policy will cost is nothing compared to the lost of the total amount you have paid.
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Posted by: Get Passports | July 23, 2009 at 01:46 AM