Insurance vs guarantee
Insurance vs guarantee

Why is it better to have luggage insurance than a guarantee?

Insurance is a type of guarantee, in which the insurance is guaranteed to make a refund/payment when particular circumstances occur and certain requirements are met. The insurance refers specifically to risk, which could be a loss or damage. Hence, insurance is about protecting the user (customer) of the service.

On the other hand, guarantee it is all about protecting the service provider or seller – NOT the user. The replacement or refund amount of your luggage and its contents will be determined by the service provider at their sole discretion. Which means that no matter how high the maximum amount of guarantee is mentioned in the agreement, the luggage storage provider will decide by itself how much your lost or damaged luggage is worth.

The key difference here is that luggage storage services that offer insurance, provide a refund that the insurer (insurance company) guarantees in the agreement, while guarantee will also provide a refund, however, the amount will be decided completely by the luggage service provider, which may not be as much as the customer or the insurance company considers it is worth.

Moreover, guarantee in many circumstances has much more limitations than insurance, since guarantee is provided and solely decided by the service provider itself, therefore it is important to find out which circumstances and events it consents to and which it does not regarding a luggage refund.


LuggageHero suggestions when choosing luggage storage provider

  1. Make sure to read the “Terms and Conditions” before making a reservation, since you might be offered a guarantee instead of an insurance.
  2. Be aware that some companies use the terms “guarantee” and “insurance” interchangeably, which should raise a red flag for users since these are two distinct terms. 
  3. Verify the insurance provider if the company offers one.

LuggageHero’s insurance and extra luggage safety

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This is by far the most comprehensive insurance coverage available in the online luggage storage field, and it is the consequence of our continuous attention on quality and follow-up with our stores throughout the world.

In collaboration with First Marine Insurance Ltd. LuggageHero is able to provide the highest insurance in the luggage storage industry! 

Customers insured with First are always covered since all of the partners are members of guarantee funds, as required by law. When something occurs, the goal is to look after the customers. It’s all about helping those who are insured get in the same position as if it never happened.