Travel Insurance 101 - Annual vs Single trip Holiday Insurance

If you’re taking a journey in the near future, chances are you’ve already been made aware of the value of having appropriate travel cover. It is a necessary purchase to guard against financial loss incurred by delays, cancellation or interruption, lost or damaged property, illness, and accidents - in addition to a host of other real, but often unforeseeable, events. As with any policy, the extent of your coverage, which includes the dates, items, events, and people covered, depends on the policy you purchase - which in turn depends on the company you buy it from. So choose wisely! One of the first decisions you need to make is whether to purchase annual travel or single trip holiday insurance. How do you know which choice is right for you? Here are a few of the advantages and disadvantages of both.

Price

Just as with any purchase, there’s a certain economy of scale involved in the business of travel cover. Everyone wants to both save money and get the best deal possible; therefore, it is important to clearly identify what you need from a policy in order to determine whether annual travel or single trip holiday insurance is the right choice for you. Because an annual policy covers several journeys over the course of a year, you end up paying a lower wholesale price compared to what you would pay in total for several. However, if you foresee taking only one holiday over the course of a year, purchasing single trip holiday insurance configured precisely to your needs is definitely the more practical option.

Convenience

Another important factor is convenience. For a person who does a lot of travelling, especially to different locations for business, convenience is of premium importance. Travellers have to contend with tight schedules, paperwork, and hundreds of tiny details that could easily lead to very unpleasant situations if neglected. If you plan several trips over the course of a year and your coverage requirements do not change significantly from trip to trip, opting for an annual plan can save you lot of time and effort with regards to negotiating and paperwork.

Coverage

The final consideration which policy best suits your needs is coverage. An annual policy generally provides the same blanket coverage for multiple journeys, which makes it perfect for those that are somewhat repetitive and mundane in nature, such as business visits to satellite offices in other countries or to visit the folks back home for ex-pats.

However, if you travel for pleasure and visit different places seeking diverse experience each time, a single policy that can be configured to your individual needs may be the right choice. For example, if you’re planning a high-octane adventure to the French Alps, you may need hazard insurance if you plan to go skiing or paragliding, which annual plans generally do not cover.

Patrick Chong is the Managing Director of Insuremore. We provide low cost travel insurance and offer a range of policies including single trip holiday insurance, annual, multi-trip and family cover. For all your travel cover needs, Insuremore can help you in the quickest and most cost-efficient way.

Writer and Online Marketing Manager in London.