Is Cruise Insurance Really Worth it? Experts at Squaremouth Break it Down

ST. PETERSBURG, Fla., Feb. 12, 2026 /PRNewswire/ -- Cruise travel is booming this wave season, with travelers most interested in luxury or premium cruises this year (53%), according to a recent survey conducted by Squaremouth, the nation's leading travel insurance comparison site.

As travelers spend more on high-end sailings, Squaremouth warns that skipping cruise insurance can expose cruisers to high out-of-pocket costs if disruptions occur.

According to Squaremouth's 2026 Cruise Insurance Cost Report, the average cost of a cruise in 2026 is nearly $8,000. For roughly between 5% and 10% of that total, cruisers can protect their trip with a comprehensive cruise insurance policy, with the average cost around $541. With these costs in mind, cruisers may question whether insurance is worth the added expense.

To help cruisers understand if cruise insurance is worth it for them, the experts at Squaremouth break down the most costly out-of-pocket expenses they may face without a comprehensive cruise insurance plan, and how it can cover them:

• A Medical Emergency or Evacuation: Most domestic health insurance plans, including Medicare, won't cover you abroad. This can leave you stuck paying for onboard medical costs, which can reach $20,000, depending on the situation. And if your illness or injury is more severe, emergency transportation from a cruise ship to a proper medical facility can cost up to $100,000 or more. A comprehensive cruise insurance plan typically includes Emergency Medical and Medical Evacuation coverage, offering protection during potential medical emergencies. It's recommended that you purchase a cruise insurance plan with at least $100,000 in Emergency Medical coverage and at least $250,000 in Medical Evacuation coverage.
  
  
• Needing to Cancel or Shorten Your Cruise: It's common for cruises to have a number of prepaid expenses, such as flights, the cruise itself, and excursions. Trip Cancellation insurance can protect 100% of your non-refundable expenses if you need to cancel for a covered reason, like an illness or a hurricane preventing you from traveling. For even more flexibility, add-on benefits like Cancel for Any Reason or Interruption for Any Reason allow you to cancel or cut your trip short for any reason.
  
  
• Missing Your Cruise Departure: Travel delays on your way to the port, including flight cancellations, severe weather, or traffic, can cause you to miss your cruise departure and leave you stuck paying for meals and a hotel. Travel Delay coverage can reimburse these additional costs you incurred. Missed Connection coverage can help cover the costs associated with catching up with your cruise at the next port if your reason for missing it was caused by a covered delay.

Not All Cruise Insurance Is Created Equal

Though many cruise lines offer their own insurance policies, they typically come from a single provider and are not as customizable. Commonly, cancellation benefits offered in a cruise line insurance plan are provided in the form of future cruise credits rather than cash reimbursement. Additionally, medical and evacuation coverage levels are much lower than what is recommended.

Because cruise costs are typically bundled prepaid expenses, there is more at stake than travelers may realize. Cruise lines are also known to have rigid cancellation policies, which can leave travelers with little to no flexibility if they need to cancel. Comparing comprehensive cruise insurance policies through a comparison site like Squaremouth allows travelers to compare multiple providers, coverage limits, and purchase higher levels of protection.

Although comprehensive cruise insurance plans can cost between 5% to 10% of your total trip price, they can reimburse up to 100% of your trip costs for covered reasons; this is a relatively small investment compared to the possible financial losses without it.

"From missed departures to possible six-figure medical evacuations, even one disruption can result in significant out-of-pocket expenses for travelers without cruise insurance," says Chrissy Valdez, Senior Director of Operations at Squaremouth. "Purchasing insurance can be the smartest expense you'll spend on the entire cruise."

Review the best cruise insurance plans or compare options side-by-side here.

About Squaremouth
Squaremouth is a trusted travel insurance comparison platform with over 20 years of experience. Known for its no-nonsense approach, award-winning customer service, and commitment to transparency, Squaremouth has helped more than 4 million travelers easily search, compare, and buy coverage. Squaremouth offers the largest portfolio of carriers and products in the U.S.

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SOURCE Squaremouth