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What is the difference between travel protection and travel insurance?

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Travelling to new places with your loved ones or friends is one of the best ways to break the monotony and rejuvenate your mind and body. However, considering the many uncertainties associated with travelling, it is important to take travel protection or travel insurance online or through an agent and stay covered. If you are thinking of going on a vacation soon and are wondering which one is a better option, this guide will help you understand both products and their differences. Here is some information to help you choose between travel insurance and travel protection.

What is travel protection?

Travel protection, also known as trip protection, is a product that a travel agency or travel company offers. If you plan a trip, but have to cancel it later, your travel protection plan will cover the trip cancellation costs. It also covers lost baggage, flight delays and missed flights. In simple terms, a travel protection plan covers trip-related uncertainties and financial loss.

What is travel insurance?

Travel insurance is a more extensive coverage that includes trip cancellation, baggage loss or delay, accident and hospitalisation expenses, third-party damage, and more. Therefore, a travel insurance policy is more like a travel companion that helps you in case of any health, baggage or journey-related issues experienced during the trip. It takes care of the emergency expenses and saves you from financial woes.

How is travel protection different from travel insurance?

Coverage: A travel protection plan covers only trip-related expenses, such as trip cancellation, missed flights, and flight delay. The plan provider may cover only a part of the expenses. Many times, the providers issue a credit note to the traveller for future travel instead of reimbursing for a cancellation.

On the other hand, a comprehensive travel insurance plan not only covers travel-related costs, but also costs related to medical emergencies or unforeseen health issues during the trip. This includes medical treatment costs, dental expenses, medical evacuation, accidental death, body repatriation, and permanent disablement. Many insurance companies also refer to it as travel medical insurance. It safeguards travellers against emergency health issues that may happen during overseas travel.

Providers: Tour operators, online travel agencies, or travel companies offer a travel protection plan.

Travel insurance is a popular and important insurance product provided by large and reputed insurance companies. This insurance plan is controlled by state insurance agencies.

Cost: The cost of a travel protection plan depends on the benefits it offers, and the type of coverage one is looking for. However, the plans cost less than travel insurance.

A comprehensive travel insurance plan offers a range of benefits to domestic and international travellers and helps keep away medical and financial worries. Also, these plans are provided by reliable insurance companies. Hence, travel insurance costs more than a travel protection plan.

Emergency services: A travel protection plan may not offer any emergency services. It can only help prevent financial loss related to trip delay or cancellation, missed flight connections, and more by reimbursing whole or part of the amount spent.

Travel insurance offers services in case of medical emergencies, medical evacuation, accidental death, hospital daily cash allowance, loss of baggage and personal documents, emergency purchases in case of checked-in baggage or flight delay, and more. If the policyholders require financial assistance in case of theft or robbery, the insurer will also provide them with emergency cash. Apart from these, travel insurance also covers third-party damage and extended hotel accommodation in case of a medical emergency.

Conclusion:

Although both travel protection and travel insurance offer many benefits to travellers, travel insurance is a better option, especially for overseas trips. While travel protection safeguards your purchases or finances, travel insurance protects you as well as your finances. If you are looking to buy travel insurance online, HDFC ERGO’s plans are a reliable option. We offer different plans for individuals, families, students and frequent flyers, which include medical and journey-related coverage. Take HDFC ERGO travel insurance for your upcoming trip and stay covered against uncertainties.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.