Travel costs can be considerably high. Risks of travel though, are much higher. So why is travel insurance important? Is it simply an added cost to your trip? What does it mean and why is it important to you?
Insurance is a financial hedge against unexpected events with high risk that require money to solve. Normally, the average Joe is not worried about any high risk events that may occur before or during their trip. These risks are not far-fetched either. They range among things like delayed departure, loss of baggage, trip cancellation expenses, hijacking compensation, medical/hospitalization expenses, emergency medical evacuation, repatriation of mortal remains, and more.
In this blog, we’ll discuss what Travel Insurance covers, who needs Travel Insurance, and where you can get Travel Insurance. By the end, you would see that Travel Insurance is even more important than you think.
What does Travel Insurance cover?
1. Medical/Hospitalization expenses or risks.
A study from the US Department of Health and Human Services says the average out-of-pocket cost for an emergency room visit in the U.S. is $1,250. This means, as an unexpected event with high risk, if you travelled to the U.S. without travel insurance or a U.S. health plan and had a health emergency that meant you needed to seek professional help, you would have to pay a whopping $1,250 just for an emergency room visit. Having Travel Insurance would save you from such costs because your insurance would cover emergency room visits and any other associated treatments.
2. Trip/Travel cancellation expenses.
Let’s say you pay ₦7,000,000 for a once-in-a-lifetime luxury trip in Dubai for your 15th wedding anniversary. Minutes before flying, your spouse suffers a serious fall and ends up in the hospital, you miss the flight. When you call the airline, travel company, or travel agent and explain what happened, they’re sympathetic—but you’re not getting your money back. Airline policy for that flight states that there are no refunds if you cancel ticket after departure.
Situations like these show why travel insurance is a must. When you have travel insurance with trip cancellation benefits you can get reimbursement for prepaid, nonrefundable trip costs when you must cancel for a covered reason. Covered reasons can include situations like the covered serious illness or injury of the insured person, a travel companion or a family member; the death of the insured traveler, traveling companion or a family member; a natural disaster or other event that renders your destination uninhabitable; etc.
3. Delayed departure & loss of baggage.
Why do we travel or go on vacations? Most times, to invest in our happiness. When the vacation begins with a cancelled flight, a missed connection, a missing bag or another travel hiccup, that happy travel feeling fades.
Travel Insurance can help keep that smile on your face. It can help soothe situations like this. Travel delay benefits can reimburse you for additional accommodation/travel expenses and lost prepaid expenses due to a covered departure delay of six or more hours (this depends on the terms and conditions of insurance set by your Insurance company). Baggage delay benefits can reimburse you for the reasonable additional purchase of essential items during your trip if your baggage is delayed or misdirected by a carrier for 24 hours or more (this depends on the terms and conditions of insurance set by your Insurance company). There are more benefits that address other common mishaps that occur during travel, so check your travel insurance plan to see what’s included.
4. Emergency medical evacuation & repatriation of mortal remains.
Did you know? The U.S. Department of State advises American travellers to carry travel insurance—specifically travel insurance that includes emergency medical benefits, emergency medical transportation benefits, and coverage for other unexpected expenses, like trip cancellation and lost or stolen luggage.
Why is that? Because as you’d imagine, the first thing most travellers do when they experience an emergency in a foreign country is call or visit the local embassy for help—but those travellers are often disappointed to discover that embassy staff’s powers are limited. Most times an embassy can help you replace a stolen passport; contact family or friends in your home country; find medical care or legal assistance; communicate with local police; and connect you with various resources. But an embassy cannot pay for your medical care, provide emergency transportation (except during rare, major catastrophes), or otherwise take care of any financial losses you suffer while traveling.
5. Loss of documents, theft, loss of property, and more.
Losing your international passport is one of the most common reasons people end up needing travel insurance. You can never be too careful travelling abroad. According to a report from the U.S. State Department, tourists are 16 times more likely to be theft victims. While it is crucial to stay on your toes and be vigilant, you may encounter situations where you have no control over the loss of your property. Fortunately, travel insurance can help you replace many things without costing you much money.
As in the case of a loss of an international passport, you may be faced with legal fees where a travel insurance can help cover the cost.
We’ve elaborated on what travel insurance covers. Well, who needs travel insurance? You may argue everyone should get travel insurance for their trips, afterall it’s a protection against even costlier travel risks. That said, not all travellers would need to get insurance. Why? Briefly, because you’re not flying international or overseas and because you’re flight ticket is refundable (when it has to do with trip cancellation benefits). Though even with these reasons, things can get complicated for the following travellers for whom travel insurance is a must.
Who needs Travel Insurance?
- If you’re travelling to study abroad.
- If you’re travelling for business.
- If you’re travelling abroad as a young Nigerian.
- If you’re travelling on a pilgrimage trip.
- If you’re travelling on a luxurious vacation.
- If you’re travelling as a senior Nigerian.
I know what you’re thinking. “Isn’t that every traveller?” Yes. Perhaps the lesson is everyone needs travel insurance because anything can go wrong at any moment. Better to protect yourself against unforeseen expenditure of tons of money.
Where can you get Travel Insurance?
Now, you know how important travel insurance is. How can you get it?
We have established that travel insurance is meant for everyone and not a select few. Cost is probably the number one reason people don’t buy travel insurance. We understand! If you’re already paying thousands for a long-awaited cruise or resort vacation, it’s tough to spend even a little more on insurance.
Here’s something a lot of people don’t know: Insurance can be really affordable. When you get a quote for travel insurance, we’ll present you with multiple coverage options, so you can pick the best one for your trip and your budget. We offer an economy travel insurance plan as our least expensive plan.
The best way to find a low-cost travel insurance is to get a quote for your next trip and then compare plans.
We have partnered with AXA Mansard to bring you the best travel insurance packages in Nigeria. Get a quote now, and insure your next trip. Better to pay a small amount now than tons of money later with added stress.