Travel insurance: Single trip or annual policy?

family beach holiday

family beach holidayIf you are planning a holiday, don’t forget to arrange insurance as well as your flights and accommodation. One in five people travel abroad without appropriate insurance cover, according to a recent report by ABTA. And less than half of us (44%) buy travel insurance for a trip within the UK.

But it can be a costly mistake. What if you have to cancel the holiday because a member of your family is unwell? Or maybe you need medical treatment overseas or your camera is stolen?

You can buy travel insurance every time you go on holiday, or you can opt for an annual policy, which usually covers any number of trips within a year. So which is the best option?

Some people are put off annual policies because the premiums can seem high. But annual cover can often work out cheaper than several single trip policies.

If you are likely to make two or more trips a year, or if you are planning a long haul holiday, you can typically save about 15% on your travel insurance if you choose an annual rather than a single trip policy.

There are other advantages to annual travel insurance. Levels of cover, particularly for medical expenses, baggage and cancellation, tend to be more generous.

An annual policy also gives you the flexibility to arrange last-minute trips without having to worry about insurance. And it’s great for busy parents because you only have to sort out the paperwork once a year. What’s not to like?

Naomi Caine was editor of The Sunday Times Money section for six years before she moved out of London to bring up a young family. She now juggles two children with a freelance career, and has written for a variety of publications, including MSN, Yahoo, The Times, The Sunday Times, Which? Money, Money Week and The Sunday Herald.