Many people have started packing their luggage to airports and started travelling again. So are you too? But before your excitement kicks in, don’t leave out the most essential – travel insurance!
Travel insurance covers risk during travel against financial loss. It covers a range of possibilities such as loss of passport and personal belonging cover, loss of checked-in baggage, etc. When choosing a travel insurance policy, you will have two options if you want to buy an annual trip or a single trip cover.
So which one should you consider purchasing? Read on as we explain the differences between these two to help you make an informed decision.
Annual travel insurance
Annual travel insurance covers multiple trips for a year from the date the policy starts. The plan covers a whole year of trips, whether for business or pleasure, up to a certain maximum duration for each trip.
There will be a limit on the number of days you can travel for each trip depending on the insurers. You will often be allowed to select from 30, 45, or 60 days of cover for each trip.
Annual travel insurance plans are ideal for those who often travel within a year. It is affordable if you frequently travel as the policy is generally less expensive than insuring multiple trips individually.
Single trip travel insurance
Unlike annual travel insurance, a single trip policy covers you for a one-off holiday. The coverage period ends when you come home. You can choose which country you want to cover.
This type of policy is usually cheaper than an annual one. You are just paying for the number of days of your holidays.
However, please note the cost can add up if you go on several holidays each year and take out a single policy each time. A single policy can work out more expensive per trip compared to an annual policy.
What does annual vs single trip travel insurance cover?
Both types of travel insurance policy will typically cover:
| Coverage | Details |
| Medical expenses | Pay the cost of any medical treatment you need while you are away |
| Missed departures and delays | Cover missed departure claims caused by mechanical breakdown or failure of public transport. |
| Cancellation and curtailment | Provide cover if you have to cancel your holiday due to various reasons before you depart, or curtail (cut short) your holiday whilst you are away |
| Luggage | Cover lost, stolen, or damaged baggage during the entire trip including with an airline, hotel room, and rental cars |
*Note: Please note that the coverage may vary across insurers. Please check with your preferred insurance company.
Annual vs single trip travel insurance: Which one should you choose?
Your choice of travel insurance depends on your travel needs. Consider the number of trips and the total number of days you plan to travel for all trips in 12 months.
Annual coverage is ideal for you if you’re planning more than one trip. It is convenient to have a year-long travel insurance policy in place. You don’t need to worry about cover every time you book a flight.
However, if you are not looking forward to flying that often, you should opt for single-trip travel insurance.
Bjak is one of Malaysia’s biggest insurance comparison websites, offering policies from over 10 brands. Get your free insurance quote from Bjak today!
Read more:
