3 Reasons to Get Travel Insurance & 3 Questions to Ask Before Getting One

Don’t know if you need to buy travel insurance for your next trip? Here are three reasons for which travel insurance is important.

ValueChampion Editorial Team

by ValueChampion Editorial Team on May 31, 2024

solo female traveller holiday

With tourism back and booming after the pandemic, most individuals and families have at least one big trip planned for the year. Whether you are making these plans independently or through a travel agent, you will likely be asked if you would like to purchase travel insurance when you make your air fare, hotel or rental car payment.

What does this type of insurance cover, and how do you know if you really need travel insurance?

The first part of this question is straightforward, in that travel insurance can cover almost every facet of your trip. This could be the cost of cancelling the trip, trip interruptions, trip delays, lost or delayed baggage, medical costs and medical evacuation during your visit.

The second part is more complicated. The majority of travel providers are paid a commission for the volume of travel insurance they sell. For this reason, it is especially important to consider whether you need to get travel insurance of your own before making a purchase.

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Who Needs Travel Insurance Most?

plans at an airport
Source: Unsplash

There are three situations that should make every traveller seriously consider getting more comprehensive travel insurance.

1) Those who are concerned about overseas medical expenses

Before any trip out of the country, it is critical to check with your existing health care provider to see if medical expenses in a foreign country are covered under your current plan. Even if your health insurance plan does provide foreign coverage, read the fine print and understand the limitations on this coverage. Many plans will pay for care in specific hospitals, doctor offices or “in-network” health care providers. When traveling to a foreign country, especially the developing world, these “in-network” providers may be hours, or days, away.

Travel insurance can cover the cost of medical care at any care provider in a foreign country and some plans will even cover the cost of bringing you or your remains home. Keep in mind, the vast majority of catastrophic accidents which happen to travelers are not the result of crime or terrorism – they are the result of traffic accidents and other “everyday” mishaps. Don’t under estimate the health risks you face while travelling, even when traveling to countries you deem safe and secure.

2) Those who have significant costs built into their trip

If you intend to fly to a foreign country and pay for expenses out-of-pocket, there is little reason to have travel insurance. However, if you are traveling to Europe to enjoy a week-long cruise in the Mediterranean, things are much different. You have significant costs built into the cruise and a missed air plane, train connection or weather delay can result in you arriving a day late and being left at port. Travel insurance can compensate you for missing the cruise when risk associated with travel come up. This is just one example, and travel insurance should be considered for any trip with large prepaid expenses.

3) Those travelling with expensive clothing or equipment

travel planning holiday
Source: Unsplash

Most of us travel with several hundred dollars worth of clothing in a suitcase. If you are traveling overseas to film a documentary, you may have several thousand dollars worth of video equipment in your luggage. For travel that are bringing extremely expensive, or irreplaceable, items in their luggage, travel insurance can be priceless. Travellers insurance can cover the cost of lost, stolen, or damaged goods within your luggage as you make your way to and from your destination.

How Valuable Is Travel Insurance?

The value of any travel insurance coverage is completely dependent on how expensive your trip is, and what type of coverage you require while overseas. For a short trip to Korea on business, it’s probably not needed. Read our complete cost/benefit analysis of travel insurance to understand the average cost of value of coverage.

Questions to Ask Before Buying Travel Insurance

Travel insurance is big business and very popular in Singapore. According to Google Trends, Singapore ranks as the number one country in the world for web searches related to travel insurance. If you are looking to buy insurance for an upcoming trip, look at our roundup of the best travel insurance plans in Singapore.

Like any form of insurance, it is critical to understand the risks associated with your trip before making the purchase. If you do elect to purchase travel insurance, it is critical that you understand what is and isn’t covered under your plan. Ask “what if” questions to your traveler provider before signing the dotted line. These may include:

  • What happens if weather delays my flight, will I be compensated for my cruise?
  • If I get into a car accident, are my medical expenses covered regardless of where I receive treatment?
  • What if I notice a camera lens was damaged on my return flight, how long do I have to make a claim?

By asking these types of questions, you will be making an informed decision about your next travel insurance purchase and getting more tailored and sufficient coverage while travelling.


Planning your next trip? Be sure to check out our roundup of the best travel insurance plans in the market today!

Compare Best Travel Insurance in SingaporeFind Out More

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