Do I really need to buy travel insurance?

Money know-how
08 Mar 2023
7 mins read
Written by Team Instarem

A vacation can mean the world to an exhausted and overworked individual looking for a good escape. But don’t let the excitement of planning this much-needed holiday cloud your common sense. We all know unfortunately, no one likes expenses, even on something that could give them a sense of security. 

Whether it’s your flights being delayed or missing a connecting bus due to traffic, travel insurance can be like hitching a ride on Murphy’s sleigh. It might not make those misfortunes and miscalculations magically disappear, but it can cushion the financial blow they bear upon you. 

Now if you’re still not convinced – here are some of the aspects that travel insurance covers: medical expenses, flight cancellations or delay policies, baggage loss or theft policies, and so much more!  

Natural disasters

Who knows when Mother Nature will decide to flex her muscles and show us who’s the boss! Traveling abroad can be a fun filled experience but if you get caught up in a natural disaster, it could take away all your joy. 

The good news is that there is travel insurance for just about any type of calamity. Sure, it won’t protect you from the wrath of Mother Nature, but at least it will cover your travel costs if you need to evacuate in a hurry. 

If you’re heading to the USA, make sure you’re prepared for hurricanes and tornadoes by including travel insurance in your budget with an average cost of USD 148. Or if you plan on visiting Japan, earthquakes are particularly common, so prepare yourself financially with an average cost of $76 – $354.66 (depending on your age).  

Wherever you go, just make sure you cover your bases! 

Loss of baggage

Baggage insurance may seem like an unwelcome expense, but trust us, it’s worth it. While the airline usually takes responsibility for any loss, their reimbursement often falls short – in many cases to below the total value of your belongings.In the US specifically, liability is capped at a mere USD 3,300- that’s peanuts when you consider the wealth of memories packed away in your suitcase! Fortunately, baggage insurance can cover that gap between airline compensation and the true cost of your baggage – with premiums generally between $1,500 and $3,000.  

Better an ounce of prevention than a pound of tears! 

Medical emergencies 

In case you thought that your holiday was all fun and games, think again! Nothing puts a damper on those postcard-worthy memories quite like having to deal with a medical emergency. Luckily, travel packages often include medical insurance in case of any unplanned illnesses or injuries – so at least you can rest easy knowing your funds are protected.  

And the good part? The price tag won’t break the bank, as coverage typically only costs between $40 and $80 for a single overseas trip. Hopefully, it’ll be money well spent – just try not to think of it as an extra souvenir! 

Trip cancellation/change of travel plan 

Cancelling or changing a travel plan is no joke – and it just got more serious with trip cancellation travel insurance! Yes, now you can make sure you’re covered in the case of damaged plans, missed flights, or a not-so-sudden change of heart.  

All for the price of between 4% and 10% of your pre-paid costs. Heck, that’s basically like a finder’s fee for missing the flight! So if anyone tells you to take a “leap of faith” for your next big adventure…make sure you also buy some jump insurance along the way. 

Terrorist attack 

Unfortunately, in today’s world, one never knows when tragedy may strike. Terrorist attacks have become a reality in many places and it pays to be prepared.  

Thankfully, even a topic as grim as terrorism can become practical with the right travel insurance policy – just in case the worst should occur while traveling abroad.  

Depending on where you call home, you could find yourself covered for hospitalization expenses, medical costs, and even transportation back home if needed. So while no one wants to plan for the worst, having travel insurance is an assurance that keeps your mind at rest. 

Lost passport 

Replacing your passport can be a literal pocket-drainer, not to mention a mood-drainer! You have to consider the emergency passport fee, the application fee, and what is called the “lost passport fee” – which actually seems like an oxymoron.  

It’s no wonder that some people think buying travel insurance to make sure they are covered in case of a lost/stolen passport is such a good idea. However, make sure to check on how much is reimbursed when you take out an insurance policy as it could only cover up to $50 to $100 – now that really puts things into perspective! 

Emergency travel 

Emergency travel could land you in all sorts of sticky situations – in one instance, you might be frantically rushing home to help with a family medical emergency, while in the other you suddenly find yourself daubing antiseptic on your great aunt’s outdoor cat who has just come down with conjunctivitis.  

Of course, despite how hectic and outrageous it may feel, don’t forget that this insurance policy of yours will only reimburse your expenses if you meet the coverage terms and conditions – so exercise caution, grab those documents and read them carefully. Who knows what surprises lurk! 


Theft isn’t something that you want to experience while travelling, although these days it’s pretty hard to avoid – especially if your destination is popular amongst tourists. Thankfully, travel burglary insurance is here to save the day.  

With plans ranging from $150-$300 for reimbursement, you can make sure that any financial damages incurred due to theft are covered like a hawk. That way you can focus on more important things during your trip – like how much pizza and ice cream you plan on eating! 

Skimping on travel insurance may score you some points in the brave department, it’s probably not wise to leave your holiday up to chance… 

For every sunny beach-filled destination, there is a rogue hurricane waiting to spoil the party. No amount of free-spiritedness makes up for being too cheap to buy a reasonable travel insurance policy.  

Sure, you might get lucky and save a few bucks here if something goes wrong abroad, but then again you might be left with an expensive consolation prize of medical bills and exorbitant hotel accommodations that cancel out all of your pre-trip savings. 

Before you go… 

Like most people, you probably want to spend the holiday season relaxing and enjoying yourself, not worrying about money. 

That’s where Instarem comes in. 

Whether you’re an expat who is travelling or a Singaporean looking to travel overseas, Instarem can help you save time and money. 

With no hidden fees and competitive exchange rates, we make it easy to send money home. Try Instarem for your next transfer by downloading the app or sign up here. 

And through amaze*, pair up with any Mastercard bank cards or top up your amaze wallet and get: 

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*Disclaimer: This article is intended for informational purposes only. All details are accurate at the time of publishing. Instarem has no affiliation or relationship with products or vendors mentioned.


About Instarem

Instarem stands at the forefront of international money transfer services, facilitating fast and secure transactions for both individuals and businesses. Our platform offers competitive exchange rates for popular currency pairs like USD to INR, SGD to INR, and AUD to INR. If you're looking to send money to India or transfer funds to any of 60+ global destinations, Instarem makes it easy for you. We are dedicated to simplifying cross-border payments, providing cutting-edge technology that support individuals and businesses alike in overcoming traditional fiscal barriers normally associated with banks. As a trusted and regulated brand under the umbrella of the Fintech Unicorn Nium Pte. Ltd., and its international subsidiaries, Instarem is your go-to for reliable global financial exchanges. Learn more about Instarem.