Do I Really Need Travel Insurance? Misconception of Travel Insurance

Do I really need travel insurance?  Many people always ask this question. Purchasing travel insurance is the most important step when planning for a trip. Whether it is a riot that prevents you from going for a trip or a theft during a trip, one thing for sure is that you won’t have home ground advantage. In this post, Cheng Kok from Journey With Money, a site which aims to help people to retire early and also avoid financial pitfalls, is going to share with you the most common misconceptions of travel insurance.

Do I Really Need Travel Insurance passport

Do I Really Need Travel Insurance?  Yes, You Do!

In USA, my friend and I were having breakfast at around 10am. We were supposed to fly back to Singapore around 1pm and around 5mins drive to the airport. Things changed after a quick breakfast. We found the window of our rented car smashed. Along with the shattered window, came the sound of our shattered hearts.

Do I Really Need Travel Insurance car theft


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The thieves have made away with both of our backpacks. In it, my friend lost his laptop, his passport and wallet. I lost my laptop, camera and several other belongings. Unfortunately, my friend didn’t buy travel insurance as he thinks it is wasting money. He missed his flight and was stranded in USA for another 2 days. In total, he had to spend around SGD$4000 to replace his laptop, air tickets, accommodation and etc. Fortunately, I had travel insurance and was able to make a claim for this incident.

Do I Really Need Travel Insurance claim

Who would you want to be in a situation like this?

Do I Really Need Travel Insurance? Common Misconceptions

There are many reasons why people don’t take travel insurance and it seems like a logical reason not to. Here are the common misconceptions and we hear

  • My credit card offers travel insurance

Credit cards do offer some sort of limited protection. Most cover for stolen items, flight delays, medical reimbursement BUT ONLY IF you book the entire trip using the card. They probably won’t pay for emergency airlift and so on (check for the policy contract)

Do I Really Need Travel Insurance money


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  • I read reviews online. Most insurance companies don’t pay the claims out

Unfortunately, most people will not have much experience claiming from their travel insurance. As a result, they don’t submit the correct information that the insurance company needs. Thus, the insurance company cannot process the claim. One example is if an individual gets robbed abroad. Writing a simple claim form will not do. The insurance company needs a legal document to prove it. In this case, he will need to get a police report stating the incident and what he has lost. If you are not intending to figure this part yourself, it will be good to engage a financial planner who is experience in doing so.

If you aren’t in Singapore and can’t meet up with Cheng Kok who specialises in insurance and financial planning, check out World Nomads. It offers very good coverage at a super affordable pricing. A 2 weeks trip to Australia costs less than $5 a day. What’s more, it even has the option to cover extreme sports such as skydiving!

Cheap Skydiving Sydney top view enjoy

  • I got drunk and hurt myself. Can I claim from this?

Unfortunately, there is no claim when it comes to a self-inflicting incident. Do take care of yourself overseas.

Do I Really Need Travel Insurance alcohol


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In Journey with money, we want to empower individuals to retire early with stock investing and avoid financial pitfalls with financial planning. Such a financial pitfall will delay retirement by at least a decade if not forever. Feel free to leave comments below or contact us at journeywithmoney@gmail.com.