"Why is Travel Insurance Important?" My 5 Reasons to Get This Travel Essential

"Why is travel insurance important?" is often asked by people who have never had an issue when travelling. For those who have, we quickly realise why it's absolutely essential.

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Quick note: this is not legal or insurance advice from Smaller Earth (or me). These are my observations based on my own experiences; everyone has individual circumstances. If you believe travel insurance is for you, research providers, check  terms, and find what works for you. Any travel insurance provider found within this article in ad placements is from an affiliate partner from whom we receive a fee for quote requests. If you require personal advice, get it from an independent, qualified financial advisor.

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Travel is life-changing. It'll be the best thing you'll do. But it will also come with its fair share of challenges. Some small, some large.

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Hopefully, it never happens, but sometimes, a major challenge arises. That's life, and the only wrong mindset you can have is thinking, "It'll never happen to me". 

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I've got two experiences/lessons to share, which show why.

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Lesson one: Stay alert

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I was lucky enough to travel to Thailand back in 2014.

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I love Thailand, and I've been back six times since. It is one of the friendliest countries I've travelled to, with welcoming locals and friendly communities.

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Unfortunately, I happened to bump into one of the 'not-so-nice' lot, which every city and country has. 

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I got out of a taxi at 5 a.m. after a 12-hour bus ride from Umpang, so I wasn't at my most aware whilst lumping a massive backpack out of the cab. 

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In this time, an enterprising individual 'graciously relieved me' of my travel bag, containing wallet, passport, kindle, documents, and more. 

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It was a nightmare to sort, bouncing around the Tourist Police, the U.K. embassy, and so on. 

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But with the correct travel insurance and processes followed, you've at least got an escape plan. It's pricey, but the right policy meant I was covered, taking one further strain away.

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Thankfully, I wasn't injured. But some face challenges abroad which involve serious injury, including my brother.

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Lesson two: Avoid wrestling

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This story also happened in Thailand, although there's no-one to blame but him and his friend. 

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(Again, we've both been back to Thailand loads because of how much we love it, so the moral of the story is 'visit Thailand, but probably stay away from us doughnuts').

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As guys do, my brother and his mate were messing about wrestling. 

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One innocuous flip and a bad landing led to a broken leg, multiple surgeries, a prolonged stay in hospital, and even after leaving the country, an intense period of rehabilitation. 

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Not to mention setting every airport metal detector off for the rest of his life, due to the multiple pins and plates in his leg.

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As I said; absolute doughnuts.

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Unfortunately, this can happen. You can be having the time of your life, and all it takes is one silly misstep or a few seconds of being unaware. 

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Again, the only mistake is believing it can't happen to you.

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A recent 2023 Forbes study showed how 77% of Brits have purchased travel insurance in the past, which still leaves above 20% who haven't. 

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If you're among the 20+% who ask, "Why is travel insurance important?" You need only ask my family. We'll go on about it until the cows come home. 

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Thankfully for me, my possessions are replaceable. 

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Thankfully, my brother's medical bills were covered, and the doctors and nurses in his Thai hospital were fantastic.

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They dealt with a severe situation in a caring and professional manner, all while dealing with the insurance company directly so my brother could rest.

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But if our two stories don't answer why travel insurance is important, here are five reasons why it's essential.

Everyone's heard stories of those without it

If you haven't heard any horror stories, then it doesn't take much asking to find out.

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You'll never think it will happen to you, that you're 'too switched on' or 'very careful'. 

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Trust us, that means nothing. 

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No one is perfect 100% of the time; all it takes is a second for something to go wrong.

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Plus, it's not all medical. According to the Forbes 2023 study into British travel insurance, claims were made up of trip cancellations (35% of claims) and lost belongings (31%), as well as other things such as flight delays (25%).

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Learn from the other stories, so you don't create one yourself.

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Protects against the unknown

The environments and the experiences you'll have are the unknown; who knows what's around the corner?

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Travel insurance protects against the consequences of the unknown. 99% of the experiences you'll have travelling will be amazing, but they're as unknown as the bad experiences. 

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Give yourself a safety net, just in case.

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Peace of mind

Peace of mind when travelling is important, as constantly worrying will take you away from the present.

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Mostly, you'll be completely fine. But travel insurance means you know that you're covered, so you can focus on the good times instead.

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Things aren't perfect 100% of the time

I'll say it until I'm blue in the face: it only takes one second, and it most definitely can happen to you.

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No one is ever perfect. You could easily go through life and not have an issue when travelling (and I sincerely hope that's the case).

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But avoid getting caught out by not having travel insurance, in case something does happen.

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Fees can become expensive without it

If something goes seriously wrong, such as needing surgery or medical intervention, overseas bills rack up quickly. 

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My brother's story is an example of travel insurance saving you a huge sum.

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 His hospital bills came to over USD$20,000. Without travel insurance, that's on him, and that's a fee he couldn't afford. 

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This means finding cheaper healthcare, potentially not as a professional or of a high standard, whilst having a broken leg and putting his long-term health at risk.

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It's a risk, for your health and your finances.

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My personal experiences, I believe, answer "Why is travel insurance important?" but it's a personal decision.

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Learn about its pros and cons, and if you decide to move ahead, do your research. Providers are all different, as are their policies and wording. Also, don't just think having travel insurance means you're covered for all eventualities; there are tiers, levels, and products that cover different things. 

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Although the majority (81%) of travel insurance claims in 2021 were accepted with an average claim of £1006 it means 19% weren't, so their situation didn't have the correct travel insurance to be covered. 

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But if you decide to go for it and you're happy with the travel insurance you've secured, it'll provide peace of mind that's impossible to get from anything else.