Travel Protection vs. Travel Insurance: What's The Difference? (2024)

FAQs

Travel Protection vs. Travel Insurance: What's The Difference? ›

The Differences Between Travel Insurance and Travel Protection. One of the primary differences between travel protection and a travel insurance policy is the coverage scope. Insurance offers a much larger range of protection, including medical expenses and baggage.

Trip protection typically covers your prepaid, nonrefundable trip expenses if you have to cancel, delay or interrupt your trip. It can also include financial protection for your belongings if your luggage is lost, delayed, damaged or destroyed by a common carrier such as the airline.

The major difference between the two types of coverage is what they protect. While homeowners insurance plans generally cover the structure of your home, home protection plans do not. Instead, home protection plans cover major systems within your home (e.g. HVAC systems, furnaces, plumbing, electrical, etc.)

When should you get trip cancellation and/or trip interruption insurance? If you would lose the money you paid for your flights, accommodations, rental car, or activities if you had to cancel or go home early, travel insurance that specifically includes trip cancellation and trip interruption is probably a good idea.

Most travel insurance policies won't pay out if you're negligent while under the influence of alcohol or drugs, and have an accident or have property stolen.

Travel insurance bundles several types of coverages, including trip cancellation, trip delay, trip interruption, emergency medical and baggage loss and delay. Travel protection is a very limited form of trip cancellation coverage that is self-insured by the travel provider.

Trip protection is an unregulated product typically offered by a travel company or travel agency. The most common trip protection plans allow you to waive a cancellation fee if you can't make your trip. Some also allow you to receive a credit for the full value of your trip.

In short, "cover" tends to focus on the physical layer that covers or encloses something, while "protection" is about safeguarding something from harm or danger, which can involve a range of different methods or approaches beyond simply providing a physical layer of cover.

Income protection insurance pays you a regular income if you can't work because of sickness or disability and continues until you return to paid work or you retire. Income protection insurance is also known as permanent health insurance.

An appliance protection plan — also known as an extended warranty or service contract — is an agreement purchased separately by the customer and is intended to provide additional coverage for product issues that fall outside of the time frame and scope of the original warranty.

How much does travel protection cost? ›

According to our research, the average cost of travel insurance is $204, but you could pay anywhere between $14 and $765 for travel insurance. While this may seem like a wide price range, it's important to understand that travel insurance is not a “one price fits all” purchase.

The average cost of travel insurance is 5% to 6% of your nonrefundable trip expenses.

Claims due to known, foreseeable, or expected events, epidemics, government prohibitions, warnings, or travel advisories or fear of travel are generally not covered (coverage can vary by state.)

Cancellation cover is a common inclusion with most standard travel insurance policies, but you can take it out separately if it doesn't offer enough cover. Alternatively, if you only want cancellation cover to protect you against cancelled flights rather than baggage protection, you can get it for that.

Trip cancellation

Cancellations can also be covered if a natural disaster, severe weather or airline strike prevents your carrier from getting you to your destination for at least 24 hours. Cancel For Any Reason (CFAR) plans provide a lot more flexibility and typically reimburse 50% to 75% of your expenses.

In general, you can buy coverage any time before the date of your trip. That said, it's always best to buy coverage as soon as you make your reservations. The sooner you buy travel insurance, the sooner you'll be protected and the more benefits you may be eligible to receive.

Trip interruption coverage exists to cover you for any unexpected or uncontrollable circ*mstances that may force a premature return home from your trip. Examples include a serious injury, illness, a family emergency back home, quarantine, evacuation or an early departure.

A complete travel insurance plan may include protections such as medical coverage, compensation for baggage loss, emergency medical transportation services and more. It may also include compensation for extras such as travel assistance and protection for your rental car.

Acceptable reasons for a trip interruption insurance claim will vary by policy, but often include: An illness or injury to you, your traveling companion or a family member. Being directly involved in a documented traffic accident en route to your departure. Death of a traveling companion or family member.