Travel insurance vs. ticket protection: What you need to know

Travel insurance and ticket protection may sound similar, but they cover different aspects of your trip. Travel insurance offers broader coverage, including medical emergencies, trip cancellations, and lost luggage. Ticket protection is more limited—it usually only refunds your ticket if you cancel for specific, approved reasons. 

Planning a trip is a huge expense and time investment, so understanding the differences between the two is crucial to protecting your plans. Learn more about what each option covers—and how to choose the right one for your trip.  

What is travel insurance?  

Travel insurance is a product that provides comprehensive protection against a wide variety of travel-related risks, including medical emergencies, flight delays and lost luggage.  

This type of coverage applies to both domestic and international travel. It’s usually purchased from insurance companies, brokers, or travel agents. In Canada, some premium credit cards also include travel insurance—provided you charge the cost of your trip to the card. 

For example, the Scotiabank Passport® Visa Infinite Card* offers extensive travel-related insurance benefits, such as emergency medical coverage for up to 25 days (or 3 days for those over 65), trip cancellation coverage of up to $1,500, and trip interruption coverage of up to $2,500. 

Here's an overview of the main categories of travel insurance: 

• Medical emergencies: Covers emergency medical expenses if you get sick or injured while on your trip. This insurance is especially important outside Canada where provincial health plans offer little or no coverage (though it will also cover you when travelling in other provinces or territories). 
• Baggage loss or delay: Provides compensation if your luggage is delayed, lost or stolen. 
• Travel delays: If your trip or connecting flight is delayed, you’ll receive some coverage for expenses like hotel stays or meals.   
• Trip cancellation/interruption: Reimburses non-refundable costs if you have to cancel or cut your trip short due to covered reasons, such as illness or a family emergency. 

Read more: Baggage delay versus baggage loss insurance: what are you covered for? 

What is travel (ticket/flight) protection?  

Travel protection is less comprehensive than travel insurance. It typically covers a limited set of non-refundable, prepaid travel expenses if you need to cancel or interrupt your trip due to specific reasons like illness, severe weather, or emergencies. 

It may include coverage for:  

• Trip cancellation: If you need to cancel your trip before departure due to an eligible reason like illness, injury, a family emergency or sometimes natural disasters, you may be reimbursed for certain prepaid expenses like flights and hotel bookings. 
• Trip interruption: If your trip is cut short or you’re unable to complete it as planned, you may be reimbursed for unused, non-refundable portions of your trip and additional transportation costs to return home. 
• Missed connections: Some plans offer compensation if you miss a flight connection. However, this coverage is less common and often only applies if the missed connection is due to a flight delay. Always check the policy details—don’t assume it’s included unless it’s clearly stated. 

Read more: What kind of travel insurance should you get when taking a vacation?

What are the key differences between travel insurance and trip protection? 

The key differences between travel insurance and trip protection lie in their coverage, cost, and flexibility. Here’s a breakdown:  

Read next: I’ve been mugged overseas. Now what? 

Choosing the right option 

Choosing between travel insurance and trip protection depends on several key factors, including your trip cost, health needs and budget.  

Here are some considerations to help you decide: 

• Trip cost: If you’re spending a significant amount on your trip, travel insurance can be the smarter choice. It provides comprehensive coverage for a wide range of risks, ensuring you can still enjoy your travels even if something goes wrong.   
• Health: For travelers with underlying health conditions or those heading abroad where provincial health plans don’t apply, travel insurance is highly recommended. It can save you tens of thousands of dollars in medical expenses. Keep in mind that pre-existing conditions are often excluded, so consult your insurance provider for clarity. Even if you’re young and healthy, accidents can happen, and it’s better to be prepared. 
• Budget: While trip protection is more affordable, it offers limited coverage. Travel insurance, though more expensive, provides broader protection and peace of mind. If your budget allows, the extra cost of travel insurance is often worth it for the added security. 

By considering your trip expenses, health needs, and financial situation, you can choose the option that provides the greatest peace of mind and keeps you covered in any situation. Compare multiple providers to help you find a travel insurance provider for your next trip.