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Travel Insurance

Travel Insurance: What It Covers and Why You Need It

11/04/20244 minute read
Travel Insurance - What It Covers and Why You Need It

What Does Travel Insurance Cover?

Considering what travel insurance covers outlines the benefits of having travel insurance of which the primary benefit is ensuring you don’t pay a hefty price if something goes wrong in the course of your travel.

This Insurance covers:

  • Lost baggage, medical expenses in case of illness while on a trip, costs of trip cancellation, cancelled flights, premature travel termination, accommodation delay or cancellation, instances of thefts and legal costs in instances where a traveller is sued for property damage or causing injury, etc. 
  • Travel insurance does not cover unlawful acts, results obtained from reckless lifestyles like drug addictions, terminal illnesses, pending surgery, and in some cases, trip cancellations or interruptions from foreseeable events and several others.

As a traveller, you must understand what travel insurance covers and what it does not cover, which coverage varies with the travel insurance provider, what the travel insurance coverage requires, and limitations on coverage amounts.

Key Terms Associated With Travel Insurance

  • Coverage amounts are the maximum amount the insurer offers as compensation to the insurance holder in the event of a medical contingency. Most travel insurance coverage amounts range from 4% to 10% of a trip’s price.
  • Coverage period: The length of time the travel insurance covers while on a trip.
  • Premiums: This is the price a travel insurance holder is required to pay for coverage and this is based on what the travel insurance covers, the age of the traveller, the destination to be travelled to, the cost of the trip etc.
  • Exclusions: These are the conditions under which your travel insurance coverage will not cover the loss. For example car rental damage due to reckless driving.

Why You Need a Travel Insurance

Travel insurance is useful in many scenarios, especially events that are unforeseeable but might end up happening. You might need travel insurance to keep you protected when these events happen and also if you’ve spent a lot of money that is non-refundable on your trip.

You might need a travel insurance if;


  • You are traveling internationally and your visa card does not offer insurance or you are travelling to a destination where your current health insurance(US-based) won’t apply.
  • You’ve spent a lot of money on non-refundable expenses that are prepaid too.
  • Your flight will involve several destinations/connections.
  • You will be travelling to a remote area where there is the highest likelihood that you will need the services a travel insurance covers.

How Much Does Travel Insurance Cost?

Getting travel insurance is not expensive, the average travel insurance cost ranges between 5-6% of the total cost of a trip according to Forbes. This implies that if a trip costs $10,000, the travel insurance cost will likely range from $500 – $600.

Other factors that influence travel insurance costs are;

  • The travel location, the length of trip, pre-existing medical condition, risky behaviours and the age of the travel insure (older individuals pay higher rates for travel insurance).

Where to Buy This Insurance?

Travel insurance can be bought online or offline. They are sold by airlines, travel agents, private insurance companies, insurance brokers, accommodation reservations, and travel insurance companies. Most travel insurance can be purchased immediately after you’ve made the initial bookings for your trip in the aspect of lodgings, transportation, rental cars, flights and activities you have in mind (tour agencies).

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