You’ve probably heard of travel insurance and you may have questions like: What is travel insurance? Should I get travel insurance? What is covered in my travel insurance plan? This guide answers all these questions and equips you with the knowledge you need to know travel insurance, ensuring you travel with peace of mind and a plan B for any situation.

In this article, we will cover:

• What is travel insurance?
• Do I need travel insurance on my next trip?
• How does travel insurance work?
• Types of insurance
• What is the difference between types of travel insurance and coverage options?
  • A breakdown of coverage options
• What is repatriation?
• Which travel insurance should I get?
  • Global insurance companies
  • Travel insurance companies for Nigerian travelers
• Things to consider when choosing a travel insurance company
• How much does travel insurance cost?
  • Factors Affecting Travel Insurance Cost
  • Before you choose your travel insurance company
• When is the best time to buy travel insurance?
• How do I get my insurance if something happens?
• Do I get refunded if I don’t use my travel insurance?
• Can I travel without travel insurance?
• Where can I compare insurance?
• FAQs

What is travel insurance?

Travel insurance is a type of insurance specifically designed to protect you from financial losses that can arise when you travel. Just like other insurance policies, you pay a small premium upfront (like a safety net fee) for coverage against certain situations. If one of those covered events happens during your trip, travel insurance can reimburse you for expenses or help you navigate getting medical care abroad.

Do I need travel insurance on my next trip?

Let’s say you’ve prepared to travel to your dream destination for months. You’ve booked your flights, found the best accommodation, and you’re looking forward to all the activities. Then two days before your trip, you fall sick and can’t travel? Or your flight gets canceled due to bad weather conditions? 

It would be a painful experience knowing your non-refundable flight costs and activity costs are gone. Buying travel insurance is a smart move as it’s a relatively small investment that can save you from a big financial headache if the unexpected happens.

While the list below isn’t exhaustive, here are some reasons you should get travel insurance:

1. Trip delays: Missed connections or flight delays can disrupt your itinerary. It might cover meals or accommodation costs due to these delays. 
2. Trip cancellations: Those with trip cancellation coverage would have reimbursed her for those lost flights and accommodations.
3. Medical emergencies: Getting sick or injured abroad can be expensive. Your coverage can cover medical bills, hospital stays, and even medical evacuation if needed.
4. Stolen items: One of the most unfortunate things that can happen during your trip is your bag containing your important valuables and documents containing your camera, wallet, and passport gets snatched. It can help you replace those stolen items and essential documents, saving his trip from turning into a nightmare.
5. Lost or delayed luggage: Airlines misplacing your luggage can be frustrating on your trip. You can get reimbursement for essentials you need to buy while waiting for your bags to arrive.

How does travel insurance work?

Similar to other insurance, travel insurance works on a risk-sharing concept. Many travelers pay a small amount called a premium. This creates a pool of money. When someone experiences an event covered in their insurance plan, like trip cancellation due to illness, money from the pool helps them recoup their losses.

Types of travel insurance

This refers to the plans you purchase based on the number of trips you take during that period. 

1. Single trip: As the name suggests, this type of insurance covers a single vacation and is ideal for occasional travelers. It is usually valid for a period of 30 days and protects you from any mishaps covered by your plan which may happen during your trip and is more affordable affordable than the 
2. Multi-trip: Multi-trip insurance covers you for multiple short trips a set period, usually a year. This is a good option for frequent travelers who take several short getaways throughout the year.
3. Long-stay:  This is designed for a single extended trip, typically lasting months up to two years. It offers comprehensive coverage for medical needs, trip interruptions, and even potential activities during your travels. It typically costs more than a multi-trip insurance.

What is the difference between types of travel insurance and coverage options?

Let’s break down the difference between travel insurance and coverage options. The difference between trip types is based on how often you travel. Coverage options, on the other hand, are personalized to create a plan that fits your trip and needs. It’s like buying pizza and you are customizing it with toppings you like. 

You can pick and choose a coverage plan that fits your specific trip with the following options: trip cancellation for covered reasons such as illness or bad weather; medical expenses; lost, stolen or damaged luggage; travel delay; and other optional coverage like rental car damage, trip cancellation for work reasons, or accidental death and dismemberment.

A breakdown of coverage options 

1. Trip cancellation 

It may cover your non-refundable expenses (flights, hotels) if you have to cancel your trip early or cut it short for a covered reason. Travel insurance for trip cancellation protects you financially if unexpected events force you to cancel your trip before departure. It is important to read your policy details for specifics on coverage and exclusions to avoid surprises when filing a claim. 

• Covered Reasons: Illness, injury, natural disasters, political unrest, or a family emergency.
• Not Covered: Pre-existing conditions, work issues, change of mind, or canceling due to events already known at purchase. 
• Deductible: Some policies have a deductible, which is a set amount you’ll need to pay out of pocket before the insurance kicks in. Make sure you factor this into your calculations.

Medical expenses

This coverage helps pay for medical bills if you get sick or injured while traveling. It’s important to note that this usually won’t replace your regular health insurance, but acts as a safety net abroad. Similar to trip cancellation, some policies might have a deductible for medical expenses. 

• Covered: Unexpected medical care, sometimes including emergency evacuation.
• Not Covered: Pre-existing conditions, risky activities, routine checkups, or illness due to drugs/alcohol.

• For certain procedures or expensive treatments, your policy might require pre-authorization from the insurance company before coverage applies.
• Some plans offer higher reimbursement rates for using medical providers within their network. Check your policy details for any network restrictions. 

3. Baggage and personal effects

This coverage can reimburse you for lost, stolen, or damaged luggage and belongings. Remember, there might be limits on how much is covered, so make sure to check the policy details.

What’s covered:

• Lost Luggage: If your checked luggage goes missing during your trip, this coverage can reimburse you for the value of your lost belongings, within certain limits.
• Stolen Items: In case of theft of your belongings from your hotel room or while you’re out and about, this coverage can help compensate you for the stolen items’ value.
• Damaged Luggage or Belongings: If your checked bag gets roughed up by the airline or your camera gets accidentally soaked, this coverage might reimburse you for repairs or replacements, depending on the policy.

Things to be aware of:

• High-Value Items: Expensive jewelry, electronics, or other valuable items might require additional coverage or separate valuation limits specified in the policy.
• Cash: These are often excluded from coverage under baggage and personal effects.
• Wear and Tear: Normal wear and tear on your belongings over time isn’t covered.
• Negligence: If you lose your luggage due to your own negligence (like leaving it unattended), coverage might be denied.

4. Travel delays

Travel insurance can reimburse you for some unexpected situations that cause a delay in your trip. Always consult your specific travel insurance policy wording to understand exactly what events qualify for travel delay coverage.

Here are some common reasons covered by travel delay insurance:

• Common Carrier Issues: Delays caused by problems with your transportation provider, such as: Flight cancellations or delays due to mechanical issues, bad weather, air traffic control problems, or strikes. Or, missed connections due to these common carrier issues.
• Severe Weather: Disruptions caused by extreme weather events that significantly hinder travel, like: Hurricanes, blizzards, floods, or other natural disasters as well as winter storms causing airport closures or road impassibility.
  
• Other Covered Events: Depending on your specific policy, some plans might cover delays due to: a death or serious illness in your immediate family requiring your return home; political event or civil unrest that disrupts travel in your destination or a jury duty summons that forces you to delay your trip.

Exclusions for Travel Delay Coverage:

While travel delay insurance offers valuable protection, there are also situations it typically won’t cover. Carefully review your policy exclusions to be sure you understand what’s not covered.

Here are some common exclusions:

• Known Delays: If you purchase your plan after you’re aware of a potential delay (e.g., buying insurance after a hurricane warning is issued for your destination).
• Delays Due to Your Actions: Missing a flight because you overslept or arrived late at the airport wouldn’t be covered.
• Routine Maintenance: Delays caused by scheduled maintenance on airplanes or transportation systems are usually excluded.
• Medical Emergencies: If your travel delay is due to a personal illness or injury, it might be covered under your medical insurance, not travel delay.
• War and Terrorism: Some plans might exclude delays due to war, terrorism, or certain political events.

Optional Coverages

You can choose from different coverage options such as:

• Rental Car Damage: Covers damage to a rental car during your trip, with some exceptions of course such as reckless driving.
• Trip Cancellation for Work Reasons: If you have to cancel your trip due to unexpected work obligations, this coverage might help you out.
• Accidental Death and Dismemberment: This provides financial protection for your beneficiaries in case of a serious accident while traveling.
• Travel Document Loss: Misplaced your passport? This coverage can help with the cost of replacing essential travel documents.

What is repatriation?

In travel insurance, repatriation refers to the process of returning you (the insured traveler) back to your home country in the event of a covered illness, injury, or even death. It can help you get home for medical treatment or ensures your remains are returned to your loved ones, depending on the situation.

Types of Repatriation:

1. Medical Evacuation: If you become too sick or injured to travel commercially during your trip, repatriation covers the cost of transporting you back home for further medical care. This can involve an air ambulance, medical escort, or other specialized transportation depending on your condition.
2. Repatriation of Remains: In the unfortunate event of your death while traveling, repatriation insurance covers the costs associated with transporting your remains back to your home country for burial or final arrangements.

The insurance company typically manages the logistics and complexities of repatriation, taking care of arrangements with medical providers, airlines, and funeral homes, easing the burden on your loved ones during a difficult time.

Which travel insurance should I get?

Global insurance companies:

1. Allianz Travel Insurance: Allianz Travel Insurance is a global travel insurance provider with a variety of plans to choose from. They offer trip cancellation, interruption, medical expense, baggage loss, and more. 
2. SafetyWing: SafetyWing is a travel insurance company that offers nomad insurance plans. These plans are designed for people who are traveling for extended periods of time, or who travel frequently. SafetyWing plans typically cover medical expenses, trip cancellation, and baggage loss.
3. AIG Travel Guard: AIG Travel Guard is a travel insurance company that offers a variety of plans, including trip cancellation, interruption, medical expense, baggage loss, and more. They are a well-known and reputable travel insurance provider.

Travel insurance companies for Nigerian travelers:

1. Leadway Assurance: Leadway Assurance is a Nigerian insurance company that offers a variety of travel insurance plans, including trip cancellation, medical expense, and baggage loss coverage. They are a good option for travelers from Nigeria looking for travel insurance.
2. AXA Mansard: Specifically for travel insurance, AXA Mansard offers plans that can cover trip cancellation or interruption, medical expenses, baggage and personal effects, travel delay, and more.

Things to consider when choosing a travel insurance company

1. Coverage:What is included in the plan? Make sure the plan covers the things that are important to you
2. Price: How much does the plan cost? Compare prices from different companies before you buy.
3. Customer service: What is the company’s reputation for customer service? Read reviews online before you buy.
4. Financial strength: Is the company financially strong? This is important in case you need to make a claim.

How much does travel insurance cost?

Travel insurance costs can vary depending on several factors, but you can expect to pay somewhere between 4% and 10% of your total trip cost. Here’s a breakdown of the key influences on its pricing:

Factors Affecting Travel Insurance Cost

1. Trip Cost: The more expensive your trip (flights, hotels, activities), the more your travel insurance will generally cost. This is because the potential payout for the insurance company is higher if something goes wrong.
2. Destination: Traveling to a high-risk destination with a higher chance of medical emergencies or political unrest might lead to a higher insurance premium.
3. Type and Amount of Coverage: The more comprehensive your plan is, with broader coverage options like trip cancellation for any reason or higher medical expense limits, the more it will cost. You can choose a more basic plan with fewer coverages for a lower price.

Before you choose your travel insurance company:

1. Compare Quotes: Don’t just go with the first provider you find. Use online travel insurance comparison tools to get quotes from multiple companies and compare prices and coverage details.
2. Consider Your Needs: Analyze your trip and risk tolerance. Do you need a comprehensive plan, or would a basic trip cancellation and medical coverage plan be all you need? Choose the coverage that best suits your needs to avoid paying for unnecessary extras.
3. Increase Your Deductible: Increasing your deductible (the amount you pay out of pocket before the insurance kicks in) can lower your premium cost. However, make sure you’re comfortable paying the higher deductible if you need to file a claim.

Remember: While travel insurance can seem like an extra expense, it can provide valuable financial protection and peace of mind in case of unexpected events.

When is the best time to buy travel insurance?

The ideal time to purchase travel insurance is generally considered to be as soon as possible after you’ve booked the non-refundable parts of your trip like flights and accommodation. It typically kicks in for covered events that happen after you purchase the policy. By buying it early, you get the most coverage for the duration of your trip.

Many policies offer coverage for trip cancellation due to illness, but they often have a pre-existing condition exclusion window. This is a specific timeframe (usually 14-30 days) after booking your trip where you can purchase the policy and still be covered for cancellations arising from pre-existing medical conditions. Missing this window can leave you without coverage for such situations.

How do I get my insurance if something happens?

If something that is covered in your insurance happens during your trip, you need to file an insurance claim. An insurance claim is a formal request you submit to your insurance company asking for financial compensation after an event covered by your insurance policy occurs. When you file a claim, you’re requesting reimbursement for your losses and you’re requesting the insurance company to fulfill its promise to pay according to the terms of the policy.

To process your claim, the insurance company will typically require documentation proving the covered event happened and the extent of your losses. This might include things like police reports, receipts for repairs, or medical bills.

The specific process for filing a claim can vary depending on the insurance company and the type of insurance. But generally, it involves these steps:

1. Contact your insurance company to report the incident.
2. Gather documentation to prove the event happened and the amount of your loss (e.g., doctor’s note for illness, police report for stolen luggage, flight cancellation confirmation email) or receipts for any expenses you incurred due to the covered event (e.g., medical bills, replacement clothes, accommodation during a delay). You can also take photos of damaged luggage (if applicable)
3. Fill out a claim form provided by your insurance company.
4. Submit the claim form and documentation to your insurance company.
5. The insurance company will review your claim and decide whether to approve, deny or the insurance company might offer a settlement amount that’s less than your original claim.

Do I get refunded if I don’t use my travel insurance?

No, you generally don’t get refunded. It offers financial protection for disruptions covered in your coverage. It gives you peace of mind if anything happens during your trip.

However, there might be a rare exception. Some travel insurance policies offer a short window (often 10-14 days) where you can cancel after purchasing the policy. If you cancel your trip within this window, you might be eligible for a partial or full refund of the premium, depending on the specific policy. Always check the cancellation policy details before buying travel insurance.

Can I travel without travel insurance?

Yes, you can travel without buying travel insurance but it is risky. Although skipping it saves money upfront, it leaves you to cover any unexpected costs that can be very expensive, especially for medical emergencies abroad or trip cancellations. There are different reasons people don’t get travel insurance: Travelers skip it to save money upfront (4-10% of trip cost) or because they feel healthy and unlikely to need it. Some travelers prefer flexibility as certain plans might restrict activities or itinerary changes. Some travelers don’t have the tools to adequately research while others might be unaware of travel insurance’s benefits. 

Where can I compare insurance?

Travel insurance comparison tools can help you find the right plan for your needs and budget by letting you compare plans from multiple insurance companies side-by-side. Here are some options:

Squaremouth: https://www.squaremouth.com/best-travel-insurance 

InsureMyTrip: https://www.insuremytrip.com/ 

FAQs

1. When does coverage start?

The coverage start dates vary. Trip cancellation/interruption typically begins at 12:01 am the day after you buy the plan, while some coverage options (medical, baggage) usually starts on your trip departure date. Always check your policy wording for specifics.

2. Are there family plans available?

Yes, travel insurance companies may offer family plans. These plans cover you and your entire family on a single policy, often at a discounted rate compared to purchasing individual plans for each family member.

3. Is there an age limit?

No, there is no universal age limit for age insurance. However, check your insurance policy to be sure.  

4. Can I change the details of my insurance policy?

You can usually modify your travel insurance, but it depends on the insurer and the change. Common allowed changes include adding/removing travelers, extending your trip (for a fee), or changing destinations (might affect coverage). However, it may be better to cancel and repurchase a policy if needed. Contact your insurance company directly to see what changes are possible and how to do them. They’ll explain your options and guide you through the process.

In conclusion, travel insurance isn’t just an extra expense; it’s an investment in a stress-free and financially secure travel experience. By understanding the different types of plans, coverage options, and the claims process, you can choose the right insurance for your trip.

Here’s how Kaijego can hep you

Kaijego can help with your travel insurance when you join our group trips.

You can also contact us through this form to plan your personalized trips such as your honeymoon, family vacation, solo trip or girls trip and we will get in touch with you.