When annual travel insurance makes sense
Single-trip cover vs annual travel insurance: which one is right for you?
If you're a frequent traveller, an annual travel insurance policy could be a convenient way to stay covered across a 12-month period.
But if you've only got one or two trips planned, a single-trip policy might make more sense. Here's how to decide.
How annual travel insurance actually works
If you're not entirely clear on what "an annual policy" entails, you're not alone.
It's commonly mistaken for single-trip cover for a year-long period, when in fact, an annual travel insurance policy (also known as an annual multi-trip or a frequent traveller policy) covers you for an unlimited number of shorter trips taken throughout a year duration.
The key question is whether an annual policy or a single-trip policy makes more sense for you.
Why buy an annual policy?
If you travel multiple times a year, an annual policy can be a convenient and cost-effective option.
You only need to purchase cover once, making it ideal for frequent or spontaneous travellers.
There is also no restriction on the number of trips you can take, so the world is your oyster in terms of coverage.
Just be mindful that maximum per-trip durations apply, and these can vary, depending on your policy.
Make sure you also think about the types of trips you take.
For example, if you regularly go skiing, you should make sure you're covered for this activity.
What is the maximum length of a trip I can take on an annual policy?
Maximum per-trip durations vary, depending on your insurer, but they are generally capped at 15, 30, 45 or 60 days.
If you plan to travel for longer than the maximum length of your set trip duration, you may need to look into a separate single-trip policy.
How can I compare the cost of an annual policy vs several single-trip policies?
The best way to gauge these costs is to do a comparison online.
Compare the cost of an annual policy against quotes for each of your individual trips to get a clear picture of what you'd expect to pay.
Depending on your age and trip lengths, an annual policy can often be a more affordable way to stay covered across all your travels throughout the year.
Can I buy an annual policy if I haven't yet confirmed where I'll be travelling to?
Yes, and this is one of the real advantages of annual cover. If you're not yet sure where you'll be heading in the next 12 months, selecting Worldwide coverage ensures you're protected no matter where you end up.
Worldwide policies will also cover you for trips within Australia as well, provided you are a set distance from home (typically 250 kilometres).
If you're at all in doubt, contact your insurer to confirm the most appropriate region for your policy.
Note that stopovers of less than 48 hours generally don't need to be included, with the exception of the USA.
Do annual policies cover business travel?
Yes. Travel insurers generally don't distinguish between leisure and business trips-your annual policy covers you regardless of the nature of your travel.
The one exception to be aware of is that some corporate annual policies may offer specific cover for business equipment, so it's worth checking the fine print to ensure your policy suits your needs.
Can I buy an annual policy at any age?
No, annual multi-trip policies tend to have age limits ranging from about 65 to 70 years of age (although some insurers extend cover up to 85).
Contacting your insurer directly or using a comparison site is the best way to find a policy that suits your age and travel needs.
When does my annual policy coverage begin?
Coverage under an annual policy begins from the moment you purchase, or a start date of your choosing, meaning if you need to cancel a trip before you depart, you're already covered.
This is one of the often-overlooked advantages of taking out an annual policy early, particularly if you have trips booked well in advance.
All other benefits including medical expenses, lost baggage and travel delays, kick in each time you depart on a trip throughout the policy year.
As always, check your policy wording for the specific terms and cover limits.
Do annual policies cover cruises?
In most cases, cruise cover needs to be added to your annual policy rather than to a single trip within it, meaning you'll pay for cruise cover across the full policy period, even if you only have one cruise planned for the year.
Is an annual policy right for you?
If you're a frequent traveller, an annual policy is well worth considering.
Run the numbers, compare your options, and if you're still weighing it up, contact your insurer or check out a comparison site with any relevant questions.
Get stories like this in our newsletters.
