Difference between insurance and financial protection

When planning a trip, it's important to understand the difference between travel insurance and travel financial protection. We understand this can sometimes be confusing, so we hope this article helps clarify the difference for you.

What is Travel Insurance?

Travel Insurance like Trip Cancellation Insurance, Travel Medical Insurance and Baggage Insurance is a specialized type of insurance policy that provides coverage for various unexpected events that might occur before or during your trip. Here are some potential reasons:

Trip Cancellations

If you need to cancel your trip for a covered reason, like illness or a family emergency, travel insurance can reimburse you for non-refundable expenses.

Medical Emergencies

Should you fall ill or get injured while traveling, travel insurance can cover medical expenses and sometimes even emergency evacuation. It's important to note that medical coverage is often an additional option that you may need to purchase separately.

Lost or Delayed Luggage

If your bags are lost, stolen, or delayed, travel insurance can provide compensation to help replace essential items or cover the cost of lost belongings. Like medical insurance, luggage coverage is frequently an add-on that you need to select when purchasing your travel insurance.

Canceled or Delayed Flights

If your flight is canceled or significantly delayed, travel insurance can help cover additional costs, such as rebooking fees or extra accommodation. However, this coverage may vary, so it's important to check if your policy includes it or if it's an add-on option.

So now you are wondering "Why do I need that?"

Be sure to review the policy details, as certain types of coverage, such as for medical emergencies, luggage, and flight cancellations, may require an extra premium.

What is Travel Financial Protection?

It incorporates financial safeguards that you can implement on your own, such as:

Refundable Bookings

Opting for refundable flight tickets, hotel reservations, or activities can protect your money in case your plans change.

Emergency Travel Fund

Setting aside extra money for unexpected expenses, such as additional hotel nights or last-minute itinerary changes, ensures you're financially prepared for the unexpected.

Credit Card Travel Perks

Using credit cards that offer travel-related benefits like purchase protection, trip delay insurance, or rental car coverage can add an extra layer of financial security.

So now you are wondering "Why does it matter?"

By understanding and utilizing available options, you can tailor your financial protection to meet your specific needs and preferences. Please also reach out to your local expert for further information and tips.

Does TravelLocal has a ASTA Membership? - Yes we do!

In the US, there are no mandatory package travel regulations like in the UK and EU Market. But we are proud to be a member of the American Society of Travel Advisors (ASTA). As an ASTA member, we adhere to high standards of professionalism and ethics in the travel industry. This membership reflects our commitment to providing reliable and trustworthy service to our travelers, adding an extra layer of reassurance when booking your trip.

So what's the difference now?

Since there are no mandatory package travel regulations comparable to those in the UK and EU, it's essential for you to take responsibility for safeguarding your travel investment by actively choosing these protective measures.