Is it Better to Buy Travel Insurance Per Trip or Annually?

What is the Difference Between Single-trip and Annual travel insurance?

As the names suggest, single-trip travel insurance is meant for a single international trip, while annual or multi-trip insurance is meant for those taking multiple trips abroad. In most cases, single trip insurance plans are valid for up to 180 days while annual travel insurance plans are valid for 365 days or more depending on the insurer.

The benefits and characteristics of both the types of trip insurance plans vary considerably and are very briefly compared below:

Please note that these are general differences, there may be some travel insurance companies that offer varying benefits. Before selecting the type of plan, make sure to assess your needs and go through the benefits offered.

When Do You Need Annual Travel Insurance?

Who doesn’t like saving money? Rich or poor, everyone wants to cut down on expenses. Most insurers advertise their multi-trip insurance plans as cost-effective and time-saving. Usually aimed at corporate travellers, business owners or frequent travellers, annual trip insurance is a great option for these people. 

However, if you are thinking about getting it too, make sure to ask these questions first:

• Do you travel frequently? 
• Do you want to save money on insuring your trips?
• Are you okay with reduced benefits?
• Are last-minute trip plans common for you?
• Does your nature of work require you to go abroad often?

If you answered yes to most of these questions, then annual trip insurance is for you. Most annual travel insurance plans are tailor-made for people like you who may not have the time to buy a policy every time they need to leave the country. 

Basic benefits under these include coverage for trip delays, emergency medical expenses, trip interruption, medical evacuation and repatriation. Your policy may have more benefits depending on the insurer too, so it's best to compare the plans available first before buying one.

When Do You Need Single-Trip Travel Insurance?

Single trip insurance is perfect for people who don’t travel often. This is usually for people or those going on a family vacation abroad. However, it is also pretty expensive because of its wider coverage. 

Compared to multi-trip plans, single-trip insurance is often half the cost, which may seem expensive to many. On the other hand, single trip insurance has perks of its own. It works best for people who:

• Don't travel abroad for than once or twice
• Are going on a very expensive trip
• Don't need to travel spontaneously or unexpectedly
• Have made advance bookings & want to protect themselves from trip cancellation
• Usually go for longer trips up to 180 days

If you meet even half of the above criteria, it is better to opt for a single trip plan. It is a perfect safeguard for those who need to protect their travel plans from emergencies beyond medical and travel document-related issues. 

You can also customise your trip insurance plan with the available add-ons like home burglary insurance, adventure sports cover, pre-existing disease cover and more depending on your needs.

Over to You,

While you may find so many options confusing, different types of travel insurance plans are made for good reasons. The availability of these options lets people with different requirements find their perfect fit so that they don’t waste a lot of time. Be it single-trip or annual travel insurance, you should understand your needs and risks well before going ahead with the purchase. No matter what you choose, just ensure that it covers all your risks.