You may have heard friends and family breathe a sigh of relief for having been protected with travel insurance. With flight delays getting increasingly common1, it’s better to have a plan that pays you back for lost time and unexpected costs incurred whilst overseas.
So when you’re booking your trip, you may be on the fence and have questions such as: “is it really worth it”, “is it necessary?”, or you may just assume that everything would be handled once you sign up for travel insurance.
Let’s go through some common misconceptions, assumptions, and travel insurance myths to help you make a more informed decision before your flight.
Misconception 1: I don’t have to buy travel insurance for short trips
A weekend getaway just hours away seems like a breeze—what can possibly happen in just 2 days? You might instead choose to use your insurance premium cost to buy more souvenirs instead.
However, whether it’s one day, a week or a month, some hazards don’t discriminate based on the duration of your holiday. Flight delays, baggage loss, theft, natural disasters or even health scares—they can happen anytime, anywhere.
It’s always better to stay prepared for any incident. With a proactive approach to travel inconveniences, you can save yourself unwanted costs down the road.
Misconception 2: I can buy travel insurance any time before my trip
The sooner you purchase travel insurance, the sooner you’re protected. While it’s true that you can buy insurance up until your departure, securing your policy early on offers several advantages.
Here are some of the pre-trip benefits that travel insurance can offer:
- Trip Cancellation/Interruption: Unexpected events like serious illness or injury, or natural disasters can force you to cancel your trip. With travel insurance, you can recoup non-refundable expenses like flights and accommodations.
- Travel Delay: Provides compensation due to significant travel delays, which can contribute towards your accommodation, meals, and transportation needs.
- Lost or Stolen Travel Documents: Covers the cost of replacing essential travel documents like passports and visas if they are lost or stolen before your trip.
- Financial Default of Travel Agency: If your travel provider goes bankrupt before your trip, travel insurance can reimburse you for lost deposits or payments.
Think of it like this: why wait to secure peace of mind when you can do it now? Anything can happen between booking your trip and your actual departure date. Your hotel or travel agency could face financial difficulties, your airline might experience disruptions, or you might fall ill before your journey begins.
With insurance, you can rest easy knowing that you can claim your losses should anything go wrong with your booking or arrangements. If you end up being too sick to travel, a doctor’s letter could help you claim a refund of expenses for your missed trip. It only takes a few minutes to apply for travel insurance, so why not do it right away?
Misconception 3: I don’t need travel insurance because I’m in good health
Don’t let good health fool you into thinking you’re invincible while travelling. Sure, being young and fit lowers the likelihood of needing medical assistance during your trip. However, even the healthiest individuals can encounter unforeseen circumstances while travelling, such as accidents or sudden illnesses such as food poisoning (hello, Bali Belly!). That’s why it’s important to have travel insurance on hand to cover medical expenses that you otherwise won’t be able to account for.
Misconception 4: I’m Automatically Covered for Extreme Sports with Travel Insurance
Think your travel insurance automatically covers your adventurous endeavours? Think again! While some policies might include coverage for certain adventure sports or activities, many standard plans exclude high-risk pursuits like skydiving, scuba diving, or bungee jumping.
It’s crucial to carefully review your policy’s exclusions and inclusions. If you plan to participate in any adventure sports during your travels, look for a policy that specifically covers those activities. Some insurers offer optional add-on coverage for adventure sports, allowing you to tailor your protection to your itinerary.
Remember, even among policies that do cover adventure sports, the range of activities covered can vary significantly. Some plans may only cover low-risk activities like snorkeling or hiking, while others may extend to more extreme pursuits. Always double-check the specific activities listed in your policy to ensure you’re adequately protected for your adventurous endeavours.
Misconception 5: Travel insurance is too expensive
While the costs of travel insurance might seem like an expense that’s worth cutting, do consider the potential financial ramifications of not having coverage. For instance, if you have to cancel your trip at the last minute due to a family emergency, or if you fall ill while abroad and require medical treatment, your out-of-pocket expenses could far exceed the cost of the insurance policy. While most of us may end up with minor ailments like scrapes, bruises or food poisoning, there have been rare cases of people chalking up costs for expenses for hospital stays, medical evacuation and more.
Most insurers offer different coverage tiers to suit various budgets. And a travel protection plan typically takes up a small percentage of your travelling expenses – it can cost as little as a taxi ride in Singapore! You can also look out for discounts—for example, HL Assurance’s Travel Protect360 often runs promotions for both its single trip and annual multi-trip travel protection plans.
Dispelling Travel Insurance Myths: Stay Protected with the Right Knowledge
By now, you should have a better grasp of the common misconceptions surrounding travel insurance and the importance of understanding the coverage it provides. Armed with these travel insurance facts, you’re better equipped to find a plan that suits your needs and ensures a worry-free journey.
What Should I Look Out For When Getting Travel Insurance?
Before diving into a specific plan, consider what you need your travel insurance to cover and why those are necessary to you. This will help you narrow down your choices and select the policy that best aligns with your travel plans.
Key coverage points to prioritise when choosing travel insurance include:
- Medical Coverage: Ensure the policy offers sufficient medical coverage for overseas medical expenses, including hospital stays, treatments, and emergency transportation. Look for policies with higher coverage limits if you are travelling to destinations with expensive healthcare.
- Trip Cancellation/Interruption Coverage: This is essential if you’re concerned about unforeseen events that could disrupt your trip. Look for policies that cover a wide range of cancellation reasons, such as illness, injury, or adverse weather conditions.
- Travel delay: Compensation due to significant flight delays for reasons such as natural disasters.
- Baggage and Personal Belongings Coverage: Lost or stolen baggage can be a major inconvenience. Choose a policy with adequate coverage for your belongings, especially if you’re carrying valuable items.
- Personal liability: Protection against legal claims and damages if you accidentally injure someone or damage property during your trip.
- 24/7 Emergency Assistance: A reliable 24/7 helpline can be a lifesaver in case of emergencies abroad. Ensure your policy provides access to assistance services for medical, legal, or travel-related issues.
- Adventure Sports Coverage: If you plan on participating in adventure activities, check if your policy covers them.
By focusing on these essential coverage aspects, you can choose a travel insurance plan that offers comprehensive protection for your specific needs and travel style. Remember, peace of mind is priceless, especially when you’re exploring the world.
Don’t Be Fooled: Travel Insurance Myths Debunked
While travel insurance offers valuable protection, it’s important to understand its limitations and dispel common misconceptions. Having insurance doesn’t guarantee a successful claim for every inconvenience or incident. There are exclusions and conditions to adhere to, and you’ll need to provide documentation to support your claim.
However, don’t let these factors deter you. Travel insurance provides peace of mind, allowing you to relax and enjoy your vacation without worrying about the unexpected. By understanding the ins and outs of travel insurance and choosing the right policy, you can ensure a worry-free and enjoyable travel experience.
Written by Shu Rin Hoe – 19 December 2024
Malaysia
Hong Kong