Do you need travel insurance for your next international trip? That depends on several factors—most importantly, how much you're willing (or able) to lose if things don't go according to plan.
After your passport, travel insurance might just be the next most essential item on your trip checklist. You want your travels to be memorable—for all the right reasons. But sometimes, it only takes one thing to turn everything around.
Travel insurance protects you from a range of travel-related risks—from minor inconveniences like flight cancellations to more serious situations such as major injuries. As global mobility increases, insurers are expanding coverage options, pricing models, and policy flexibility. With so many choices available, selecting the right plan has become both easier and more complex.
How travel insurance works
The Asia-Pacific region is currently the fastest-growing market for travel insurance, though it has traditionally been most popular among European travellers and those visiting Europe, for reasons we will explore later.
Like any other type of insurance, travel insurance is something you hope you never have to use—but if you do, you’ll be grateful it’s there. While it’s an extra expense, the peace of mind it provides is priceless, especially when you’re in a foreign country.
Where to buy travel insurance
Travel insurance is widely available. Here are some common options for purchasing it.
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Airlines: Many airlines offer travel insurance as an add-on when you book your trip, often through partnerships with the major insurance providers.
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Credit Card Companies: Some credit cards include travel insurance benefits or offer it as an add-on when you use them to book travel-related expenses.
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Online Marketplaces: Websites that allow you to compare multiple policies and prices side-by-side.
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Travel Agencies: Travel agents can assist you in purchasing travel insurance when arranging your trip.
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Travel Insurance Companies: Many insurers have websites where you can instantly get quotes by entering your trip details.
How much does travel insurance cost?
Since travel insurance policies vary widely, so do their costs. Premiums—the price you pay for coverage—depend on several factors, including the type and level of coverage, your age, destination, trip cost, trip duration, and any pre-existing medical conditions.
Additional costs may come from specialised policy riders that cover specific needs like adventure sports, business travel, rental car protection, and the like.
Types of travel insurance
Travel insurance provides a range of protections—from coverage for lost baggage and emergency medical care to evacuation during crises and repatriation in the event of death.
Basic categories of travel insurance include:
Trip Cancellation or Interruption Coverage
This type of insurance reimburses you for non-refundable travel expenses if your trip is cancelled or cut short due to a covered reason. These reasons often include unexpected illness or injury, a death in the family, natural disasters at your destination, or even your travel provider going bankrupt.
Cancel for Any Reason (CFAR) Coverage
“Cancel for Any Reason” (CFAR) Coverage offers significantly broader flexibility than standard trip cancellation or interruption coverages. However, CFAR never reimburses 100 per cent of your insured trip costs, covering only 50 to 75 per cent. It also costs significantly more—usually 40 to 60 per cent above the base insurance premium.
Baggage and Personal Effects Coverage
This protects you in case your luggage or personal items are lost, stolen, or damaged while you're travelling. Coverage usually applies to both checked and carry-on baggage. It may also include reimbursement for essentials like clothing and toiletries if your bags are delayed. However, there are often caps on how much you can claim per item or per bag, so it’s important to review the limits in your policy.
Travel Health Insurance
Also known as travel medical insurance, this provides coverage for unexpected medical expenses while travelling abroad. It typically includes emergency medical treatment, doctor visits, hospital stays, ambulance services, and sometimes dental emergencies. Some plans may also include 24/7 medical assistance services and direct billing arrangements with hospitals.
Comprehensive Travel Insurance
This is a bundled plan that combines multiple forms of coverage into one policy. A comprehensive plan typically includes trip cancellation and interruption, baggage and personal effects, emergency medical care, evacuation, and sometimes rental car damage coverage or accidental death and dismemberment (AD&D). These all-in-one policies offer convenience and broad protection, making them ideal for travellers who want peace of mind without having to purchase and manage multiple individual policies.
Additional coverage options
Depending on the plan and provider, you can customise your policy with optional riders such as:
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Identity theft resolution services
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Adventure sports coverage
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Pet health-related cancellations
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Missed flight connections
What is not covered by travel insurance?
Travel insurance is designed to mitigate risks and protect you from events beyond your control. For instance, you may be eligible for coverage if your flight is cancelled due to poor weather. However, if you miss your flight because you overslept, that would not be considered a valid claim—unless you have “Cancel for Any Reason” (CFAR) coverage.
Common exclusions may also include:
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Pre-existing medical conditions (unless specifically covered by a waiver)
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Civil or political unrest in your destination, especially if known in advance
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Pregnancy and childbirth
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Coverage for dangerous activities
Each policy differs. Always read the fine print to understand the limitations, exclusions, and loopholes that may apply.
Do you need travel insurance?
Travel insurance isn’t always necessary—but in some cases, it’s well worth the cost. The question to ask yourself is: Can you afford to pay out of pocket for expenses that insurance would otherwise cover?
Other factors to consider:
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Prepaid and non-refundable travel expenses.
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The weather forecast for your travel dates.
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Your health status and existing medical coverage.
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The value of your luggage and personal belongings.
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The risk level at your destination (natural disasters, civil unrest).
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The flexibility of your travel plans.
Bottom line: Travel insurance is about managing risk. If you’re uncomfortable absorbing potential losses, insurance can provide valuable peace of mind.
Travel insurance and visa eligibility
Travel insurance requirements can be part of visa eligibility criteria and may be mandatory for travellers visiting the following destinations:
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Algeria
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Argentina
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Aruba
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Cuba
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Ecuador
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Fiji
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Georgia
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Lebanon
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Iran
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Israel
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Jamaica
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Jordan
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Moldova
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Morocco
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Nepal
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Qatar
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Romania
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Rwanda
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Seychelles
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United Arab Emirates (UAE)
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Togo
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Turkey
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Antarctica
Final thoughts
Travel insurance is a valuable tool for managing the financial risks of travel, though its utility ultimately depends on individual circumstances. Given the variety of plans available—many of which are both affordable and easy to obtain—investing in travel insurance is often a practical choice that provides valuable protection and peace of mind.
Stay connected with SimCorner
Before you jet off to your next destination, make sure you're covered—not just with travel insurance, but also with seamless mobile connectivity. SimCorner offers affordable travel eSIMs and SIM cards for over 200 countries and regions, so you can stay online, navigate with ease, and keep in touch wherever you go. Because peace of mind isn’t just about protection—it’s about staying connected, too.
