Buying a travel insurance is a must before travelling – you hear people reiterating the importance of buying one all the time. But just what does it really cover?  Here are 9 things you should know and it’s not only about getting covered while you set foot on a foreign land. 


1. Trip Cancellation

You never know what can happen right before the trip. You may be able to make claims for abrupt cancellation of trips due to:

  1. suffering of serious injuries from an unfortunate accident
  2. encountering life threatening situations
  3. attending to an immediate family member for some life crisis

2. Financial default

Asia-Euro Holidays pulled down its shutters in 2015 after 13 years in business
 and well known homegrown travel agency Five Stars Tours went bankrupt in 2014. In the event of such sudden closures, you are able to make claims through your travel insurance. 

3. Accidents claims before a trip

If any accidents happened before your flight (depending on policy, check time frame between time of leaving your residence and takeoff), you can make claims as well. Or in the event you died in the accident, your family will get compensation.


4. Trip Interruption

There is reimbursement if your trip was cut short due to an outbreak of strike, riot or civil commotion.

5. Car excess claims

Road trips are fun but an accident can dampen your spirits, even worse when you are not covered. An insurance plan is usually included in your car rental contract. If the car rental contract term states that you are liable for any accident excess or penalty, your travel insurance may cover this cost. 

6. Property Damages

More and more people are looking to stay at quirky and quaint Airbnb properties. While you get to enjoy the hospitality and uniqueness of a third party’s home, be aware that you could be legally liable to compensate the owner as a result of causing damage to the property. A travel insurance may get you covered for such accidents whilst overseas. 


7. Loss and delay of luggage

Coming home in one piece should also include your luggage but sometimes things get lost in transit. Travel insurance is able to cover loss or delay of luggage.

8. Medical Expenses

Getting sick after a trip is not funny, sometimes it gets so bad you may require hospitalisation. Within a timeframe after you come back, a travel insurance may cover such medical costs, this is especially important for those who do not have health insurance plans. 

9. Personal accident

You or your family may claim cash payment in the case of death, injury or loss of limbs due to an accident which happened within three hours upon arrival in Singapore.

Certain coverages are only available if you buy within a certain number of days (check your policy) of your Initial Deposit Date, our advice is to buy as early as you can. Thinking of travelling somewhere soon? Check out our unbiased and transparent comparison tool for the best travel insurance plans according to your needs. Still unconvinced you need a travel insurance, read our other travel insurance posts to understand more.