YOU ASK:

Annual travel insurance vs. single trip travel insurance – what’s the difference and which one is cheaper?

WE ANSWER:

If you are looking to get the best and cheapest deal and are deciding between purchasing a single trip travel insurance policy vs. an annual travel insurance policy, you should first look at what you need.

Single trip travel insurance would usually be for someone who does not travel a lot within the year and is only going for a limited number of days. This kind of insurance provides a maximum time limit for the trip you will be taking. This limit is usually shorter than 180 days.

If you are doing traveling for three or more times a year, it would be more advisable to get annual travel insurance, since this will come out to provide cheaper coverage. It also provides the added convenience in that you don't need to buy travel insurance every time you travel. This kind of travel insurance covers you for a specified number of trips or a specified number of days of traveling in a year.

There are also some annual multi-trip travel insurance plans that provide unlimited number of trips or days, just as long as the length of the trip falls within the maximum number of days specified in the policy. Annual multi-trip insurance is also best for those whose job or business requires them to make unpredictable trips and who make not have the time to buy the necessary insurance.

When comparing cheap single trip travel insurance and cheap annual travel insurance, single trip travel insurance plans have their own distinct advantages. Cheap single trip travel insurance would usually provide the basic benefits and can also be called Holiday Insurance. This kind of plan comes out cheaper since you only pay for the number of days you are traveling. That means you don't have to pay for extra days when you are actually not traveling. Single trip travel insurance is also cheaper, as this provides just the basic protection one might need when one is going on a short trip or a holiday.

However, you will need to extend your cover in case your return flights are changed and you have to extend your trip.

Annual travel insurance also may have some disadvantages. There may be some exclusions that will not cover terrorist activities and may also include high excess or deductible levels. If you also don't make as many trips within the year, then the annual insurance would come out more expensive.

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