Why is having travel insurance important?
Travel insurance (also called travellers insurance) can help you bear the costs of unexpected travel accidents such as lost items, cancelled flights, medical emergencies, and even theft. While these scenarios are unlikely to happen, they are still more common than you think, and if/when it ever happens the support of insurance will be a great relief.
Having insurance also means you don’t have to spend too much time fixing the problem, letting you continue to enjoy the vacation you worked so hard for. Let the insurance companies sort out the kinks for you (because that’s what you’re paying for!) while you carry on with your holiday plans as best you can.
What does travel insurance normally cover?
Policies for travel insurance differ from provider to provider, and coverage also varies depending on the premium and other options you can choose.
However, most travel insurance will typically cover these scenarios:
1. Flight/reservation cancellation
Even though your reservation says that it is non-refundable, your travel insurance may still be able to help you get your money back in the event of a cancellation. You are more likely to get a refund if the cancellation was unexpected and not your fault; a frequent example would be a flight delay/cancellation due to bad weather or some other circumstance. In this case, your insurance will typically cover the cost of lodging and even a meal until the next available flight. Other examples could be if your hotel accidentally overbooked rooms, or that concert you had tickets for suddenly reschedules or cancels. Any of these scenarios would be a bummer, so getting some money back can at least help to ease the disappointment and allow you to make alternative plans.
2. Medical emergencies
When travelling in a foreign country, the local healthcare system and how it works may be unfamiliar to you. In Singapore, Medisave and MediShield are so easy and automatic that we don’t even have to think twice about going to see a doctor. But when on holiday, medical emergencies become a bit more complicated to handle and seeking medical treatment, no matter how small, may come at a high cost you might not expect.
Having potential medical bills covered by travel insurance will also put you at ease in the event of an emergency. You won’t be left worrying about expenses when you or your loved ones need immediate medical care. Even for smaller health issues like coming down with the flu or having food poisoning, you can choose to get the best care without hesitation.
If your travels involve an extreme physical activity such as scuba diving or mountain climbing, you may want to look into specialised insurance providers who are familiar with the medical emergencies that arise with those activities.
_(Medisave does cover some cost of overseas hospitalisations, but conditions apply. See the MOH website for more details.)_
3. Lost luggage or items
This is perhaps the most probable of the scenarios to happen. If your luggage is lost or stolen, insurance will help to cover the cost of purchasing new clothes and toiletries. Or, if you are visiting a place known for having crafty pickpocketers, then insurance covering the theft of your valuables (jewellery, cameras, phones, watches, etc.) will come in handy.
If your passport or other important travel documents are stolen, travel insurance can help cover the costs of replacing a new passport, trip cancellation, and even for assistance in getting you to the nearest embassy.
Compare & book cheap flights to ‘Everywhere’ hereWhere can I buy travel insurance?
There are a number of ways to purchase travel insurance. Each way provides different coverage from others, so do some research before your trip so you know what you are covered for.
1. Local insurance providers
Reputable local insurance companies offer travel insurance packages that you can purchase for single trips, or unlimited trips within a specified timeframe. Some good providers for Singaporean citizens/residents are NTUC and AIG.
2. Credit cards
Some credit cards geared toward the international jet-setter (whether for work or leisure) offer complimentary travel insurance as one of the main benefits of membership. Check out the Citi PremierMiles Visa Card, which covers cancelled flights ($500), delayed luggage (up to $500/bag), and lost bags ($500/bag up to $1,000). Another great card is the ANZ Travel Signature Card, which reimburses cancelled flights for up to $1,000/person, and has a lower annual fee than the Citibank card. Do take note that the level of coverage may change depending on the tier of card you have, and that some cards also include medical coverage.
3. Airlines
International airline carriers usually offer the option to add on a travel insurance plan to your flight booking. Coverage varies by airline, country of departure, and destination.
So… should I buy travel insurance?
Do some research before your trip to get a good understanding of what coverage you might need, and what you might already have. Read the fine print on your policy so you are not surprised when an overlooked restriction prevents you from filing a claim. Your insurance policy could say it will reimburse you $500 for a flight delay, but different policies can have different definitions of how long a flight delay has to be for your claim to be eligible.
Every traveller and each trip is different, and travel insurance is not a one-size-fits-all solution. Think about what your trip is like and try to predict some scenarios you may get caught up in. Here are some good questions to ponder:
- Are you travelling alone? Or do you have dependents?
- Do any of the travellers have pre-existing medical conditions?
- Are you bringing any valuable equipment along?
- How many flights or connections do you have?
- Does the airline have a bad reputation for being late or losing bags?
- Are you visiting a big city with a Singapore embassy, or are you going into rural, hard-to-reach places?
So weigh the costs and benefits of getting travel insurance! Whether you choose to get insurance or not is entirely up to you, and there are no right or wrong answers. But whatever your decision, it’s nevertheless a good idea to know what travel insurance is, where to get it, and what it can do for you.
Compare & book cheap flights to ‘Everywhere’ hereBags packed, tickets booked, and expect the unexpected… ready for your next adventure? Book cheap flights, hotels and car rental via Skyscanner today, or download our free mobile app for easy browsing and booking on the go.
Adapted from an article originally written for Skyscanner.
Read more:
- Delayed or cancelled flight? 10 tips to travel smarter when this happens
- Missed your flight? Top tips on what to do next
- 7 credit cards to use overseas
- How to deal with lost luggage: 10 tips
