Why is travel insurance important? For one travel insurance makes your vacation or travel more secure in case of any untoward incident. Like if you lose your luggage, travel insurance can provide you with temporary funds for you to buy essentials like clothes and such while you’re waiting for your things to be returned. Travel insurance also covers medical expenses you incur overseas – as expenses like these are not covered by your regular healthcare insurance.

The rates differ depending on the provider – it’s always best you shop around and research a bit to compare – but it is usually around 12% of the cost of your trip. As much as a tenth of people who have travel insurance file claims, which is simply a testament to how many people actually need travel insurance.