Travel Insurance and travel protection both sound like a good option in the world of uncertainty. But both of them are different, and it is necessary to know the difference to find out which one is suitable for your next trip. Travel protection is not travel insurance; it's rather a limited form of trip cancellation coverage that is insured by the travel provider. Also, travel protection can refer to the fee paid to the tour operator to waive the cancellation penalty. It can refer to other travel protections as well which could be supplemental for travel insurance.
While many of us buy travel insurance, travel protection is a little unheard term. To know which one is best and to avoid scam keeps reading to know more.
Break Down
Travel insurance is a regular product offered by insurance companies that covers losses you may face while travelling. These can include rental damage, flight delays, lost baggage, medical expenses and trip cancellation. A typical policy costs 5 to 7% of the cost of your trip. Thus, if we look at travel insurance it offers overall protection.
Trip protection is an unregulated product type offered by your travel agency. The most common travel protection covers you against trip cancellation by waving off the cancellation fee in case you can't make up to the trip. Some allow you to receive credit for the full value of the trip. The cost varies but typically it always less expensive than travel insurance.
Though it might look simple, there is often high confusion around travel insurance and travel protection, people use the two terms interchangeably. The reason for this confusion is that many cruise lines offer bundle protection which covers part travel insurance and part travel protection. You have to review your policy document very carefully to know that you are buying insurance not just a waiver for the cancellation process. You might be planning international travel with an infant. In any case, you need to have insurance to protect your journey.
How to tell if travel protection will protect you?
Read the document:
Sometimes trip cancellation wavier is included in a plan, and you don't need to pay any extra amount for that. When filing for a claim, look for a cash refund. Thus, read the policy document clearly to know what process you need to go through.
Look for insurance component:
Insurance is regulated policy offered by insurance companies, while promises may not have trust a document in the form of a policy is surely a legal document. If you are dealing with travel protection make sure that the process is done under a travel agency in collaboration with an insurance firm.
Look for name you trust:
Saying that you have insurance is not enough. You need to have your insurance from a trustable partner. Companies with a brand name will have more responsibility for protecting you on your trip if anything goes wrong. Also, the process will be less tedious in case you file a claim.
