1. What is Insurance
In simplistic terms insurance is something you pay for to help you pay for things should anything go wrong. Car insurance will pay for accidents you have such as scratching the side of the car or if someone smashes your window to nick your mobile. House insurance covers break-ins, damage from leaving the taps on. Travel insurance therefore covers you for when things go wrong overseas.
2. Why do I need insurance?
Most people think you need insurance to pay for things if they get nicked or damaged, like your backpack, camera or favourite pair of pants. Wrong, it is more serious than that.
In short you need insurance to prevent your little accidents resulting in your parents, family or friends becoming bankrupt, losing their house and their life savings. You think I'm joking right?
Ok, let me explain why. God forbid but you have a bad accident in the States (where medical treatment is expensive) or up a mountain in Nepal where it is going to cost more than a tenner to get you down and into hospital. Within 24 hours you could have racked up a $200,000 bill (helicopters and removing bits of scooter out of your left buttock aren't cheap you know). You have no insurance. Someone has to pay the bill, there is no wriggling out. Imagine your parents' or family being faced with this? People have been known to sell their house and lose all their life savings - all for the price of a few hundred dollars now!