Annual or Single Trip Travel Insurance – A Face Off
The holiday season is in full flight (excuse the pun!) and people are heading off to the four corners of the world to sun themselves, get a bit of rest and recharge the batteries. Perhaps one of the last things they’re thinking of is whether to take single trip or annual insurance. Sounds a bit of a philosophical question. doesn’t it? But, believe it or not, it’s a question worth pondering.
Price or value?
The travel insurance industry provides a range of policies for many different types of travel and policies can be tailored to suit the needs of most people. There are advantages and disadvantages to both. The cost, flexibility, level of cover and eligibility all vary and many people miss out on getting the best deal by going for what may be seen as the cheap and easy option.
But it’s not all about cost. There are plenty of all-in-one packages out there. People often look at the headline price, think it represents good value and then, when it’s too late, realise they’re not covered. So look at the details of the policy and set them against what you are actually going to do.
We’re all creatures of habit and many people renew policies year blindly from one year to the next without shopping around or finding something that’s tailor made from a specialist.
Do the research
Generally speaking, travel insurance policies can be tailored to suit most individuals and their chosen holidays. Believe it or not, you’ll require different policies depending on whether you want to lie on the beach or go scuba diving.
Another consideration is how often do you travel? It may (although not always) be cheaper or better value for money to take an annual policy. Do you have a pre-existing medical condition? Do you travel on business? To the same parts of the world or different ones?
This year, there has been a trend towards single trip policies. There may be a number of reasons for this for example travellers are being increasingly cautious and only plan to take one holiday. Or people also see the lower cost of a single trip policy and think they are getting a cheaper deal without looking at the wider picture. Also, some travellers reach an age where a single trip policy is often the only affordable option.
So what’s best?
That’s a really difficult question and the answer will be determined by your personal circumstances. But as a general rule:
- Annual cover is harder to find after the age of 65 (although World First offer policies up to the age of 74)
- Single trip policies are more readily available for travellers over 65 and World First can insure people up to the age of 100
- Travellers with pre-existing medical conditions may find it hard to get an annual policy
- Insurers are more likely to provide a single trip policy to someone with a medical condition, as they can better assess the risk for a one-off, compared to an annual policy, which covers all trips for the year.
- Single trip policies may appear cheaper but if more holidays are booked then an annual policy can pay for itself after the second trip
- Annual policies can sometimes cover leisure and business travel
- Think about the sports and activities you enjoy. If you plan to go skiing in the winter, then add it to your policy when you insure your summer holiday if buying an annual policy.
Related posts:
- Save on travel insurance with an annual policy from World First!
- Trip or holiday cancellation an ‘important facet of travel insurance’
- Get Something for Nothing – Travel insurance for holidays booked using loyalty schemes
- Family holiday? Here’s how to sort the travel insurance.
- HIV Travel Insurance Cover
