The choice between annual and single trip travel insurance can be tricky. However, deciding which plan you get is a matter of understanding what you need to safeguard on your travel.
Which is cheaper?
Which one is cheaper will depend on how many times you plan to travel within a year. If you’re sure to go for one or two holidays overseas, a single trip policy will suit your needs.
However, if you plan to take several voyages overseas, an annual multi-trip policy could be more affordable. It can help you cut travel insurance costs.
What is single trip travel insurance?
Single trip travel insurance is a policy that covers you for one trip abroad. When taking out the policy, you will need to confirm your destination, set off date, and the end date of your trip. You will only be covered at your specified destination within the set period with this type of insurance.
Pros
- Cheaper than annual cover
- Cover-specific based on your trip
- Can hold a higher maximum age than annual cover
Cons
- Can be expensive if taken per trip
- Shorter-term cover
- The policy is just for one time travel
What is annual travel insurance?
This type of insurance, also known as multi-trip travel insurance, covers you each time you travel in a set period, usually 12 months. When applying for an annual cover quote, your provider will provide you with choices between:
Europe
Worldwide, excluding the USA, Canada and all Caribbean islands
Worldwide, including the USA, Canada and all Caribbean islands
Your cover also includes travel to countries in those areas. For instance, you would NOT be covered if you preferred Europe and progressed to Asia. Also, it can cover any domestic voyages you take within the UK.
Each trip has a specific limit in terms of the number of days you can stay. Several policies will cover an individual trip of up to 31 days. This means you would be covered for trips of 31 days or less but not exceeding 32 days or more.
Some offer terms of 10 days or up to 90 days, so review the policy thoroughly before you take it out.
Pros
- Can be cheaper if you plan on travelling several times during the year
- You don’t have to get a policy each time you travel
- Covers your trips in the UK
- Great for spontaneous trip takers
Cons
- Has lower maximum age most often
- Your cover would not be specific per trip
- Can seem wasteful and expensive if you don’t travel more than once or twice in the year
What can single and annual trip travel insurance cover?
Both types of travel insurance can cover:
Medical expenses
Cancellation
Repatriation
Baggage or belongings
Personal money
Review each policy thoroughly since each policy will cover specific points, but not all will cover everything you need. Also, compare how much you are covered for.
Other circumstances to consider:
Winter sports: Adding winter sports to an annual policy could make it more costly than single trip policies, particularly if you only go on a winter sports holiday once a year.
Pre-existing medical conditions: You must disclose any health conditions when you apply. Annual cover with medical conditions covered can be costly, so check to see if it is cheaper to get single trip cover.
Your age: Several insurers will not offer annual travel insurance for travellers past 75 or 80 years old, so you will necessitate getting single trip policies which do not have any age restrictions.
Should I get a single trip or an annual policy?
Deciding whether to get a single trip or annual trip travel insurance policy depends on your circumstances. If you only have to travel once or twice within a year, you should get a single trip policy. But if you’re travelling often or are likely to book spontaneous trips throughout the year, annual insurance would be best.
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