Why You Should Get Travel Insurance (And What Happens When You Don't Buy)

In 2025, the landscape of travel has evolved, yet the importance of travel insurance remains paramount—not just for health emergencies like COVID-19 but for a broad spectrum of potential travel interruptions. 

Whether it's to shield your cancelled flights or to provide critical medical coverage abroad, the value of travel insurance in providing peace of mind cannot be overstated. In these unpredictable times, understanding how travel insurance fits into your travel plans is crucial. This guide delves into why buying travel insurance is worth it when it comes to protecting your travel investments and ensuring a smoother journey.

Travel insurance provides essential protection, covering everything from unexpected cancellations and medical emergencies to baggage issues during your travels.

Travel insurance policies offer varying coverage limits that reflect the price and scope of the policy. Whether you opt for basic protection or comprehensive coverage, these policies are tailored to safeguard your travel investments against a broad spectrum of potential disruptions. Choosing the right level of coverage ensures that from the moment you depart to your return, you're protected financially and medically.

>> Learn more: 10 tips to buying the right travel insurance in Singapore

For those seeking tailored travel insurance solutions, travel insurance like MSIG's TravelEasy and Travel Guard by AIG offer a range of plans from single-trip options to annual covers for frequent travellers. These policies cater to individuals and families, providing peace of mind with extensive coverage across numerous potential travel issues. 

Each plan is designed to meet various travel needs, ensuring that whether you're travelling solo or with loved ones, your travel insurance is as ready for the journey as you are.

To help you find the perfect travel insurance for your next adventure, SingSaver has meticulously evaluated a wide range of policies, comparing coverage options, benefits, and pricing. Discover the best travel insurance companies right now and expert insights.

>> Learn more: Best travel insurance for pre-existing conditions in Singapore

Travel insurance is an invaluable asset for travellers, but it's equally important to recognise what it does not cover.

• Pre-existing medical conditions: Most travel insurance typically excludes coverage for pre-existing medical conditions unless a specific rider or add-on is purchased to address those conditions.

• High-risk activities: Adventurous activities like mountain climbing, cave diving, or heli-skiing are typically not covered under standard policies. However, some insurers, like MSIG and FWD, offer special plans that cover these higher-risk adventures.

• Travel to high-risk countries: Regions with travel warnings due to war, civil unrest, or high levels of crime may be excluded from standard travel insurance policies.

• Certain types of trips: Business-related travel or group trips may require specialised insurance coverage that differs from standard leisure travel policies.

>> Learn more: Best Travel Insurance Plans for Extreme Adventure Sports

Additionally, personal accidents that involve the consumption of alcohol or drugs leading to an incident may be considered 'self-inflicted' and thus not covered. Similarly, acts of terrorism and the outcomes of war are usually not covered unless specific terrorism coverage is purchased.

A popular but optional upgrade is the Cancel For Any Reason (CFAR) add-on, such as those offered by FWD and MSIG, which provides the most flexibility, allowing cancellations for reasons not typically covered by standard policies. While more expensive, CFAR can reimburse up to 75%, offering peace of mind for uncertain plans.

>> Learn more: How to cancel travel insurance policy and get a refund on premiums

Sometimes, opting out of travel insurance is a sensible choice, particularly under certain circumstances where the risks are minimal or already covered by other means. Some scenarios where travel insurance might not be necessary include:

1. State-to-state travels: When travelling between cities or states of the same country, the benefits of travel insurance can often be redundant, especially if your existing health insurance covers medical emergencies away from home.

2. Sufficient credit card coverage: Many credit cards offer travel insurance perks, including protection against trip cancellations, interruptions, and emergency medical situations. If your credit card provides comprehensive travel protection that meets your needs, additional travel insurance may not provide significant extra value.

3. Adequate existing protections: If your existing insurance policies already cover the major risks associated with your trip, purchasing additional travel insurance may not be cost-effective. This is often the case with health insurance that extends coverage internationally, offering peace of mind without the need for duplicate coverage.

Travel insurance safeguards against unforeseen events that could otherwise turn an exciting journey into a financial nightmare, making it worthwhile to invest in travel insurance for:

Coverage for trip cancellations or interruptions

Travel insurance is crucial for recovering costs associated with trip cancellations or interruptions. This is particularly valuable for non-refundable tickets and reservations. If you've planned a lavish family holiday at a resort in the Maldives during the monsoon season, travel insurance can cover the financial risk if the trip is cancelled for various reasons.

Insurance also covers additional accommodations or travel expenses if your trip is unexpectedly extended. For example, if you're unable to leave Bali due to an unforeseen airport shutdown, your additional hotel stays and new flight bookings can be covered.

Protect against high medical costs abroad

Travel insurance is vital for covering exorbitant medical expenses incurred overseas. Many countries, particularly those with high healthcare costs, can pose financial risks if you fall ill or suffer an injury. Singapore's health insurance policies may not provide adequate or any coverage abroad, making a robust travel insurance policy necessary to avoid potentially crippling out-of-pocket expenses.

Beyond medical bills, travel insurance plays a crucial role during emergencies. This can include everything from natural disasters disrupting your plans to personal crises that necessitate an urgent return home. Whether it’s a travel cancellation due to a natural disaster at the overseas destination or emergency overseas telephone charges you might have incurred, travel insurance ensures you're not financially disadvantaged.

Compensation for lost or delayed baggage

Losing your luggage or experiencing significant delays can disrupt your travel plans and incur unexpected costs. Most travel insurance policies compensate for the loss of personal items and cover essentials while you wait for your belongings. For Singaporeans travelling far from home, this coverage is a reassurance that minor mishaps won’t lead to major outlays.

Cancel For Any Reason (CFAR) coverage

CFAR coverage offers the ultimate flexibility, allowing you to cancel your trip for any reason that falls outside typical coverage. This might include personal reasons such as a serious injury or a family death at home. While more expensive, CFAR adds a layer of cancellation flexibility that standard insurance doesn't provide.

Comprehensive protection despite credit card coverage

Even if your credit card includes some travel insurance benefits, these may not sufficiently cover all aspects of your trip or might come with lower limits that don’t meet your needs. Comprehensive travel insurance ensures you’re fully protected beyond what your credit card offers, covering significant medical emergencies or evacuations that credit card benefits typically overlook.

>> Learn more: Why buying travel insurance is necessary (and what happens if you don’t)

Whether planning an overseas adventure via a cruise or a business trip via flight, buying the right travel insurance is crucial. In Singapore, you can purchase insurance directly from providers like MSIG, AIG, or FWD, through their websites, offering detailed comparisons and customisable plans. Alternatively, travel agencies and online booking platforms often bundle insurance with your travel bookings for convenience. For those seeking competitive pricing, platforms like SingSaver allow you to evaluate various options side by side.

>> Learn more: Annual vs single trip travel insurance: which policy saves you more money and hassle?

The cost of travel insurance in Singapore varies, largely dependent on factors like the length of your trip, your destination, age, and the level of coverage you select. For a tailored quote, it’s best to consult directly with insurance providers such as NTUC Income, AIG, or FWD. Alternatively, platforms like SingSaver allow you to compare prices across different insurers, helping you find a policy that fits both your needs and budget effectively.

While many credit cards offer travel insurance benefits, such as coverage for delayed flights, damaged rental cars, or lost luggage, the extent of protection can vary significantly. These perks might seem appealing, but they often come with notable limitations and exclusions. For instance, the coverage limits might be lower than expected, and not all types of trips, such as one-way journeys, may be covered. 

Additionally, such insurances typically handle minor inconveniences rather than more serious issues, which might require comprehensive travel insurance. Hence, it's crucial to scrutinise the fine print and evaluate if the offered coverage meets your travel needs.

Travellers should weigh the benefits of credit card insurance against dedicated travel insurance plans. While credit card perks can provide some level of security, they usually do not offer extensive medical or emergency coverage, making them insufficient for more significant concerns. Furthermore, the annual fees for premium cards that provide these benefits can often exceed the cost of standalone travel insurance. Therefore, unless your credit card insurance comprehensively covers all your travel needs, purchasing additional travel insurance might be a more reliable and safer choice.

>> Learn more: Credit cards that provide travel insurance

Deciding whether to purchase travel insurance often hinges on the non-refundable costs of your trip and the level of uncertainty involved. For Singaporeans planning extensive international travel, especially to destinations with high medical costs or volatile weather conditions, travel insurance becomes essential. The peace of mind it offers, knowing that significant financial losses and medical emergencies can be mitigated, is invaluable. Ultimately, if the investment in your trip is substantial and the potential disruptions are too costly to bear alone, securing travel insurance is a prudent decision.

Leveraging travel insurance for maximum benefits

Looking for a travel credit card that aligns with your globetrotting goals? Here are some top travel insurance contenders for 2025, each offering unique perks to enhance your journeys: