Insurance claims being denied because of gift card payments?

[SL6827]

Any more reports of travel insurance agencies refusing to pay claims where the travel, or part of it were paid with gift cards? This sounds like a very clever way to get out of paying claims, and guest need to know this info for the years ahead.

I wouldn't be shocked if this is not the way going forward and this greedy trick needs to be publicized well.

 

[LuvOrlando]

Is there an article on this somewhere? I looked and see a thread on cruise critic about this topic.

 

[starry_solo]

Is there an article on this somewhere? I looked and see a thread on cruise critic about this topic.

There was a thread about this a few weeks ago, I'll see if I can find it

Found it here:
https://www.disboards.com/threads/trip-insurance-when-paying-with-gift-cards.3943993/

 

[LuvOrlando]

That is bananas, that'll teach me to pay for trips with other means and to use the gift cards "in the moment," instead. I just realized I paid for a big chunk of my last trip with a gift card, had no idea it could have been jeopardized even though insured - won't do that again

One would think with all the bad press during Covid (I am still haunted by the videos, stories and all the lost money) the cruise industry would avoid alienating the people willing to cruise? Whole industry is holding on by a very thin thread.

 

[MyDogTink]

I have so many thoughts about this running through my head.

Insurance is great until you need to use it.

If you book a cruise with the cruise line, doesn’t your account show the line items of cost and payment? Cruise costs $5k. You pay deposit of $1k via gift cards when booking. You pay balance of $4k on your Disney visa 90 days prior to sailing. Doesn’t that invoice effectively show the $1k in gift cards as fungible cash?

There’s a number of threads out there. Real examples would be helpful.

Also the travel insurance offering materials say prepaid, non refundable expenses are covered. If they want to carve-out prepaid gift cards, they should list that.

 

[SL6827]

That is bananas, that'll teach me to pay for trips with other means and to use the gift cards "in the moment," instead. I just realized I paid for a big chunk of my last trip with a gift card, had no idea it could have been jeopardized even though insured - won't do that again

One would think with all the bad press during Covid (I am still haunted by the videos, stories and all the lost money) the cruise industry would avoid alienating the people willing to cruise? Whole industry is holding on by a very thin thread.

Exactly. If you needed five grand in Disney funds to pay off any vacation, that's a $250 savings from Target red card one couldn't get paying with a bank account. (for the most part)

Target also sells Delta gift cards too. Maybe Southwest as well.

 

[lanejudy]

If you needed five grand in Disney funds to pay off any vacation, that's a $250 savings from Target red card one couldn't get paying with a bank account.

Which may be part of the issue. The insurance company can’t reimburse to a Disney gift card. But if they refund $5K you are then “more than whole” by $250 because you never spent that much.

Bottom line — ask questions before purchasing insurance (of any kind). Make sure it will cover your specific situation. Insurance that doesn’t actually meet your potential needs is just money wasted.

 

[bighuskermav]

This thread has me alarmed since we paid (almost) the entire cruise with discounted DGC. The Cruise is in October, and our final payment (about $200 remaining) is due in June. I do want to purchase travel insurance.

Does anybody have real experience filing a claim when they paid with gift cards? All I see is a bunch of speculation.

I do wonder if buying Disney’s insurance would be the best move, even though it’s normally more expensive than 3rd parties. Considering it gets added to your final bill (and that itself can get paid with a gift card) - it seems like maybe you would be “safer”.

I do have a spreadsheet that tracks all the DGCs I used for this trip and when/where I bought them. I generally also have the receipts and credit card statement. I could also look up the card’s transaction history on Disneygiftcard.com to show that each card was applied to “Disney Cruise Line”. I do wonder if DCL can generate a statement that shows all the payments?

 

[lanejudy]

Does anybody have real experience filing a claim when they paid with gift cards? All I see is a bunch of speculation.

On the DCL forum thread linked above, at least a couple of posters contacted their insurance directly. It does seem to be something that could vary by insurance provider. One said as long as the poster could document purchase of the gift cards, that would be covered. A few others were told no.

I do wonder if buying Disney’s insurance would be the best move, even though it’s normally more expensive than 3rd parties. Considering it gets added to your final bill (and that itself can get paid with a gift card) - it seems like maybe you would be “safer”.

The DCL insurance may be the best option. IF insurance denies a claim, the policy purchased through DCL provides for a "CFAR" credit which could recoup up to 75% of the cruise fare regardless of how it was paid.

 

[SL6827]

Which may be part of the issue. The insurance company can’t reimburse to a Disney gift card. But if they refund $5K you are then “more than whole” by $250 because you never spent that much.

Bottom line — ask questions before purchasing insurance (of any kind). Make sure it will cover your specific situation. Insurance that doesn’t actually meet your potential needs is just money wasted.

Right. Not worth risking five grand for $250. This is a possible game changer now.

 

[easyas123]

Bottom line — ask questions before purchasing insurance (of any kind). Make sure it will cover your specific situation. Insurance that doesn’t actually meet your potential needs is just money wasted.

100%. It's up to the consumer to know what they are buying.

 

[SL6827]

100%. It's up to the consumer to know what they are buying.

True. But I am glad this info was posted.