Save Money on Holidays with Annual Travel Insurance
At Good Money Tribe, we’re all about helping you make the most of your money, especially when it comes to planning holidays. As a financial education expert teaching in the workplace, I often get asked how to save on travel costs. One smart way to cut expenses if you travel frequently is by using annual travel insurance.
What is Annual Multi-Trip Travel Insurance?
Annual travel insurance, also known as multi-trip insurance, is designed for those who travel multiple times a year. It provides coverage for an unlimited number of trips within a 12-month period without needing to purchase separate insurance for each journey.
How Does It Work?
A multi-trip insurance policy typically activates as soon as you take it out. However, you’ll need to activate it for each new trip. Most policies have a cap on the number of days each trip can last, usually around 31 days, so if your holiday exceeds this duration, it won’t be covered.
When Does Annual Travel Insurance Start and How Long Does It Last?
You can usually choose the start date for your multi-trip policy. It’s advisable to set the start date to the first day of your initial trip to maximise the policy's duration. Buying insurance when you book your holiday but setting the policy to start on your travel date ensures coverage for cancellations that might occur between booking and departure.
What Does Annual Travel Insurance Cover?
Annual travel insurance generally includes coverage for:
- Medical emergencies
- Trip cancellations
- Lost luggage
- Travel delays
The specifics of your coverage depend on the provider, so it’s crucial to read your policy details carefully. You might also have options to add extra coverage for gadgets, winter sports, or cruise trips. Ensure that the coverage limits, such as cancellation insurance up to £1,500, meet your needs.
Who is Covered by Annual Travel Insurance?
Typically, the policy covers just you as the policyholder, but family policies are available to insure all family members.
Where Can I Travel with Annual Insurance?
You can choose the coverage area for your policy, usually between:
- Europe
- Worldwide (excluding the USA, Canada, and the Caribbean)
- Worldwide (including all regions)
The broader the coverage, the higher the cost, so pick the option that aligns with your travel plans.
Annual Multi-Trip vs. Single Trip Travel Insurance
Single trip insurance covers one specific trip, while annual insurance covers multiple trips throughout the year. If you plan to travel only once, a single trip policy might be cheaper. However, for multiple trips, annual insurance often proves more cost-effective. Plus, it’s convenient as you don’t need to buy a new policy for each trip.
Why Multi-Trip Insurance Can Be Cheaper
Though the upfront cost of annual insurance is higher than a single trip policy, it spreads over multiple trips, reducing the price per trip. Compare the costs of single trip policies versus an annual policy to see which offers the best value based on your travel plans.
Where Might I Need Additional Cover?
Certain situations might require additional cover:
- Pre-existing medical conditions
- High-risk areas for natural disasters or violence
- Specific types of trips like skiing or cruises
Can You Cancel Annual Travel Insurance?
You can usually cancel an annual travel insurance policy within 14 days of purchase, known as the ‘cooling-off period’. However, terms vary by provider, so check cancellation policies and potential fees before buying.
Is Annual Travel Insurance Worth It?
It depends on your travel plans. Frequent travelers will likely find annual policies more economical and convenient. For a few trips, compare options to find the best deal. For a single trip, a single trip policy is typically cheaper.
How to Find the Best Deal on Your Insurance
Using price comparison websites is a smart move to ensure you get the best price and coverage.
