Do You Need Annual Travel Insurance?

Published: 10/05/2012

Most of us these days are looking for ways to save money. This can mean cutting back on pleasures, and avoiding unnecessary purchases. The problem is that many of us could be wasting significant amounts of money without even realising it. This occurs when we end up paying more for things than we should be paying. One area where people will commonly overspend is in regards to travel insurance. What happens is that the individual has bought an inappropriate policy that ends up costing them more. In many cases the individual will have been able to save money if they had chosen annual travel insurance.

How to Know if You Need Annual Travel Insurance

The reason why most people fail to purchase the right type of travel insurance is that they have failed to understand their own needs and compared that to what is available. Of course, this is not the consumers fault because many insurers seem happy enough to allow customers to pay more than they need to. Here are a few clues that you may be paying more than you need to for travel insurance:

  • If you go away more than once a year but buy single trip travel insurance each time then you are almost certainly paying too much for travel insurance. These single trip policies are only really meant for those who go away once a year for a short holiday. These days most of us take more holidays than this so single trip insurance is not really the best option.
  • One way to decide if we need to single trip or annual travel insurance is to do the maths. This means figuring out how much we will pay for our insurance if we buy multiple single trip policies and comparing this to the cost of annual insurance. You may be a bit shocked to find out how much you are wasting.
  • If you take regular mini breaks or go on business trips throughout the year then this would also suggest that you need some type of annual policy.

Sometimes Annual Insurance will be the Wrong Choice

Sometimes annual insurance will be the wrong choice for the individual’s needs for example:

  • Those people who do only go away for one short holiday each year do not need annual holiday insurance. They could end up paying more money than they need to by choosing this option.
  • If the individual plans to go away for a long holiday that is more than a month then they may not be able to use annual travel insurance or single trip insurance. This is because these policies usually only cover trips of less than a month at a time. For longer holidays it is usually best to consider some type of backpacker insurance.

Buying annual travel insurance can save some people a good deal of money. This is always an option worth considering. The individual needs to look at their own situation to decide if this type of policy would benefit them. 

Posted in: Travel Insurance
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The Travel Insurance products available herein are underwritten by UK General Insurance Ltd on behalf of Ageas Insurance Limited. Registered in England No. 354568. Registered Office: Ageas House, Tollgate, Eastleigh, Hampshire, SO53 3YA. UK General Insurance Ltd and Ageas Insurance Limited are both authorised and regulated by the Financial Conduct Authority. Downunder Insurance Services Limited is authorised and regulated by the Financial Conduct Authority (FCA). Our FCA Register number is 306618.