Travel insurance is essential for your wellbeing and your peace of mind whilst abroad. But what is the difference between single trip travel insurance and annual cover? Well, the one-off policy covers you for a very specific and usually much shorter period of time, whereas the annual policy covers you for the whole year.
If you know that you are travelling only once this coming year and that there’s no way that you’re making it out of the country for a second time, then a single trip policy could be just right for you. This will end up being much cheaper for you in the long run, as you aren’t paying a higher fee to cover you at any other time throughout the year. The only risk is when you get surprised by a loved one with a highly adventurous (and potentially dangerous) skiing trip in the Swiss Alps, and suddenly have to take out a second one-off policy. This is where it starts to become less cost-effective for you.
The alternative option to single trip travel insurance is to get annual cover. This is most suitable if you’re travelling multiple times throughout the year, and you’ve planned for this. You’ll end up being much more cost-effective, as this policy stops you from having to take out a separate policy every time you travel, and overall it will average out at less per trip.
The only risk is that if you plan to go abroad, but an unforeseen circumstance stops you from going, you’ll have ended up paying annual cover for maybe just one trip in the year.
What Increases the Price?
There are other factors, however, that will increase the amount that you will pay. Let’s take a look at a few common culprits.
If you are going somewhere that’s outside Europe, you may be exposed to climates or situations that are unfamiliar, which will increase your insurance price. The reason for this is that you are more at risk of something going wrong and your body not being equipped to deal with it.
If you are going on a very adventurous holiday (the sort that I am partial to, I must admit) where activities like skiing, skydiving, mountain biking and many more would not be off the cards, then this will also raise your price. As you are more at risk of an accident, your insurance company has to cover your back.
If you’re pregnant, elderly or frail in any way, your price will naturally increase. Help to keep your costs manageable by choosing destinations that aren’t too renowned for their daredevil activities!
Don’t Forget Your Travel Insurance!
The take-home message from this should be: don’t forget to insure yourself. Whether you opt for single trip travel insurance or annual cover, just don’t leave yourself with the risk of a difficult situation. Get your insurance sorted now to ensure that you rest easy on your holidays!
Patrick Chong is the Managing Director of InsureMore, an award-winning team of specialists in global, annual and single trip travel insurance policies. Besides offering great deals on travel insurance, Patrick also collects and shares the best free travel competitions to help his clients get the most out of their holidays.