What is Travel Insurance? Types Of Travel Insurance

Traveling can be quiet stressful especially when it’s your first time traveling or you have not been in the place of your destination before. Even for regular travelers, emotional stress and eagerness to reach your destination may make you to forget your luggage in the commercial transport vehicle.

Some people often get sick or have fever when they are on transit; there are also cases of arm robbery and accident especially for those traveling by land and most especially on bad roads as seen in many parts of Nigeria.

The above mentioned occurrences are not threats, they happen unexpectedly, due to change of environment, or maybe out of ignorance; because with a knowledge of travel insurance one should understand that any misfortune that occurs to you during a trip can be recovered or protected by acquiring a travel insurance policy.

Insurance in general serves a purpose of risk protection; Travel Insurance however, is a type of insurance that covers a registered traveler (called the insured) against risks or loss during a trip. Such risks may be life threatening, or may result to loss of properties (e.g. bags, luggage and documents) belonging to the insured or beneficiary.

When And Why Do We Need Travel Insurance?

There is no specific time to acquire a travel insurance plan, but to avoid liability one who travels once a year or longer need to purchase a short term plan other than buying a long term plan which ought to be purchased by regular travelers.

The main benefit of travel insurance is that it guarantees travelers of any loss (e.g. damage to properties or stolen properties) they may encounter during a trip. Travel insurance is recommended at all times for everyone irrespective of their age, its benefits are more manifested during festive periods like Christmas where there is increased traffic, home visitations, high cost of living and urban trips which creates higher rates of accidents, arm robbery and misplacement of traveling items.

The need to secure yourself and the properties you are traveling with is very important though not mandatory while traveling to different parts of the world. Travel insurance is essential in a Country like Nigeria where there are:

  • Bad roads, 
  • High rate of insecurity and environmental hazards, 
  • High cost of living
  • Poor maintenance of transit vehicles.

What is Covered Under Travel Insurance

Travel Insurance services are dependent on the insurance company offering such services, and the premium paid to the company by the insured. Higher premiums have higher coverage, and cheaper premiums are offered by larger companies. However, the general service coverages include:

  • Medical emergency services
  • Travel delays
  • Stolen bags or luggage
  • Evacuations
  • Trip cancellation with valuable reasons and proof
  • Loss resulting from terrorists’ attack or theft
  • Injury or illness during a trip

What is Not Covered Under Travel Insurance

There are few exclusions which are not covered by travel insurance policies, or requires expensive amount of money before one could enjoy them. perhaps some companies have special- ad premium plans that cover such exclusions. These exclusions may include:

  • Pre-existing medical conditions
  • Suicide
  • Losses due to pre-existing conditions
  • Routine dental care
  • Emotional disorders
  • Trip cancellation for personal reasons
  • Pregnancy and child birth
  • Traveling for medical treatment 
  • Cancellation of trip because of Bad weather
  • Frauds like Ticket scams

Types Of Travel Insurance

There are several types of travel insurance depending on the traveler’s condition, state or interest. They are:

Domestic Travel Insurance

As the name implies, domestic travel insurance guarantee home travelers of losses like stolen bags, emergency illness, theft, medical care, delays and death.

Domestic travel insurance is specifically for people traveling within a state or country.

International Travel Insurance

It is one of the most common type of travel insurance, it covers the traveler from all losses covered generally by an insurance policy. Travelling to foreign countries may present the traveler with several challenges like unfamiliar weather conditions which may trigger illness on the traveler, stolen or missing luggage to due insecurity, poor language comprehension or delays from natural hazards, and loss of documents. Once you buy a premium for your trip, the insurer will financial guarantee you of any of the challenges listed above.

Annual Multi-Trip Travel Insurance 

It is also called Corporate Travel Insurance, mainly for employees of a given organization who wishes to travel in group for a certain business operation.

Students Travel Insurance

This insurance policy is available for students who travel abroad for studies. It covers them of their traveling properties (bags, luggage, documents etc) and life (medical care and injury)

Family Travel Insurance

For family members who wishes to travel, it’s mostly patronized during festive periods like new year celebrations, Christmas, and Easter celebrations.

List Of Best Travel Insurance Companies in 2022

The major purpose of travel insurance is to serve as financial backup to travelers in cases of property loss and/or life threats, there are many insurance companies offering such services.

However, there are special and well-known companies that offer excellent services (special-ad premiums) to the insured, depending on the premium purchased and the policies stipulated by such companies.

Also keep it in mind that larger companies like the ones listed below offer cheaper premiums unlike small insurance companies that are often times battling cases of liability on their own side. Below is a list of the current best insurance companies you need for your trip:

  • Axa mansard travel insurance
  • Travelex travel insurance
  • Allianz travel insurance
  • Leadway travel insurance
  • Mutual benefits travel insurance
  • Insure my trip travel insurance
  • World Nomads travel insurance
  • Nationwide travel insurance
  • Geoblue travel insurance
  • AllCO Travel insurance

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