When buying travel insurance, you might choose the single trip option out of habit. There are usually good discounts on these, or it might just be too “painful” to calculate the number of trips you need to “break-even” with an annual multi-trip policy.
But sometimes, an annual multi-trip policy could be more worth it and save you more money.
This simple checklist can help you to decide.
1. Do you need pack-and-go convenience?
Annual travel insurance is a one-time purchase which covers you for an unlimited number of trips. It’s valid for 12 months, and usually covers trips that last up to 90 days.
So if you’re the type to forget about travel insurance… or if you have a travel “quota” to hit, annual travel insurance could be a life-saver.
It’s highly convenient, as you will not have to remember to buy travel insurance before every trip.
You’re also covered for all those spontaneous holidays. We know, because we’ve done those on-the-spur trips: beach-bumming with bae… golfing with the buds in Bintan… eating our way through Bangkok…
2. Are you traveling near or far?
When headed to faraway travel destinations, most people tend to stay longer to make the long flight and fuel/airport taxes worthwhile.
If you’ve planned multiple trips to faraway destinations, an annual plan might actually be more worth it.
3. How long is each trip?
Many annual plans have a maximum trip duration of 90 days. (Check the fine print!)
Your trips might last longer if you’re on a multi-month sabbatical, or doing an extended eat-pray-love trip to recharge.
The rule of thumb is: if your trip lasts for more than 90 days at a stretch, just get a single-trip insurance policy.
4. How firm are your travel plans, specifically stopovers?
This is more of a pro-tip than anything else, as stopovers are typically covered by both single-trip and annual multi-trip policies.
If you’re purchasing an annual policy, you’ll want to balance its cost with the geographical coverage. For instance, you might save money (initially) with a policy that covers only South-East Asia, but if your plans change to include Hong Kong, Taiwan, New Zealand, or Japan… you’ll have to get a new policy.
So our little tip is to buy a policy that covers a reasonable number of regions. And if you’re travelling further, a worldwide policy might make the most sense as it covers any unexpected change in stopovers too.
5. Are you flying or taking a cruise?
This is another pro-tip: not all modes of transport are created equal.
If you’re taking a cruise in the US and Europe, your trip is likely to be longer (the flight, plus those cruises are usually longer). An annual travel policy could be more economical in this case.
Moreover, cruises often have very high medical and evacuation expenses, so make sure your policy has a high coverage limit.
6. Are you travelling with someone who’s much older?
Annual multi-trip policies often have lower maximum age limits than single-trip policies.
If your travel party has older folk, check the age limit to see if it makes more sense to buy a single-trip policy instead.
7. Are you planning to do any risky activities?
Coverage of adventurous or “risky” activities usually comes at a higher cost.
As such, they tend to be included in only the top tier policies. Make sure your policy covers you for the activities you’re planning for!
