Annual Travel Insurance Vs Single Trip Travel Insurance – Which is Better?

Traveling and taking holidays can be a lot of fun, but it can also be scary. If something goes wrong, you may find yourself in a foreign land amongst foreign people with no idea where to turn for help. Travel insurance prevents this from happening by helping you through all of the unforeseen circumstances that may befall you on a trip. Travel insurance can help cover expenses if you become ill or injured, lose your luggage, have a car accident or have to change your plans due to weather or illness.

There are two basic types of travel insurance: annual travel insurance and single trip travel insurance. Annual travel insurance is purchased annually and covers all of your travels for the entire year. Single trip travel insurance is purchased at the beginning of each trip and is only good for that trip.

There are benefits and drawbacks associated with each type of travel insurance. The following two sections will address the pros and cons of each.

Pros and Cons of Annual Travel Insurance

When you purchase annual travel insurance, you pay a one-time fee. This fee covers the cost of the insurance for the whole year. If you travel a lot, this price is almost always less than you would pay for multiple single-trip policies. But the price for annual travel insurance is also more than you would pay for one or two single-trip policies. So you need to have a clear idea of how often you will use the insurance before you spend the money for it.

Annual travel insurance is ideal for people who travel a lot. Business professionals, people with family living abroad, and families with holiday homes usually benefit the most from such a policy. Students who have to travel back and forth from school may also benefit from this type of policy.

Pros and Cons of Single Trip Travel Insurance

Single trip travel insurance is the most cost effective way to purchase travel insurance if you only have need of it a couple of times a year. It is spontaneous. You can purchase travel insurance prior to any trip even if it is spur of the moment. It is also inexpensive. Single trip travel insurance normally costs about four to seven percent of the entire cost of any prepaid trip.

If you make a lot of spontaneous trips, however, you could end up spending more than you bargained for if you purchase a separate policy each time you leave town.

Both annual and single trip travel insurances offer the same coverage. The only real discrepancy between them is cost. Therefore, you need to choose the most cost effective way to purchase the insurance that best meets your needs. If you have any doubts, talk to a travel agent. They will be able to help you compare prices and coverage options. The most important thing is that you always travel while insured. You need to be prepared for everything that may happen.

Business Trip Travel Insurance

If you are planning a business trip, you may be under the impression that if anything was to happen to you while you were away that your employer will cover it. However, the chances are, your employer will be under the assumption you have arranged your own travel insurance, therefore responsibility, as far as your employer is concerned, would lie with you.

Whether you are self employed, or an employee, or an employer, looking to take a trip to improve relations or get a better deal from a supplier, o meet that all important new client, but having business trip travel insurance in place you can be sure that all you need to worry about is the ask at hand, and not anything related to your trip.

Having the insurance is not just sound financially, but, in the event of an emergency, can also help your business make the most of an unfortunate situation, as well as ensure that you business meeting is not too effected by any mishaps that may happen. Your cover could include a replacement colleague clause, so that if you or your employee is sick during their business trip, your insurance will cover most if not all of the costs in replacing that colleague with another member of staff.

Time and time again we hear that our own government officials have left extremely sensitive and important information, appear and digital based, in places they shouldn’t have been left. It happens, and when it does, it can cause a real problem within your business. No matter how comprehensive your insurance is, no amount of money can bring that data back, so be sure you have back up copies of all important documents relating to your business. However, your business trip insurance can cover the cost of a replacement laptop, which at least softens the bow a little when you have o tell your employer the bad news.

No matter what you encounter during your business trip, by taking out the appropriate insurance you can be sure that no matter what unexpected events occur, your business will not be affected. Business trips are a necessary burden to most people, and the burden should not be made any bigger by needing insurance, and not having it.

If your business trip is not all work related, and you plan to have a little fun while you’re away, some providers will be able to offer cover equivalent to a holiday single trip, which will be an extra benefit of your business trip insurance.

Make sure you check with your insurer to find out exactly what your policy covers.

Top 3 Reasons You Need Single Trip Travel Insurance

Many people forego the purchase of even a single trip travel insurance protection in the mistaken belief that such coverage is an unnecessary luxury. While many people could perhaps get away without having such coverage (but it is certainly ill-advised to do so), there are three critical conditions that it a “must-buy”.

Poor Health

The worst thing someone in poor health condition can do is embark on a physically taxing (and sometimes emotionally draining) journey abroad without getting at least a single trip travel insurance policy. Proper cover can protect you in terms of shouldering the cost of emergency medical procedures, should the need arise. What happens if you go to the emergency room in a foreign country and you don’t have enough money with you? Going abroad without sufficient coverage is extremely foolish-if even normal situations at home tend to trigger your asthma attacks, for instance, consider what awaits in a place you are unfamiliar with. Moreover, if you have a condition like vertigo, any sudden attack can endanger you and other people on the road (should you be driving a rental car). While an insurance policy does not make your health improve, it can certainly protect you from having to outlay a huge amount in an emergency medical situation.

Travelling to Dangerous Places

Here’s a true story: a couple travelling to Peru-a country whose government barely holds it together on the best of days-decides to get a single trip travel insurance policy. It was a precarious time when the dreaded swine flu was at the centre of every health advisory, but the couple chose to get insurance against the possibility of cancellation ‘for any reason’. As it turned out, their much-awaited trip would not be botched by swine flu, but by civil unrest; getting the cover they did significantly helped them swallow the frustration at their loss-at least, it was not as financially painful as it would have been if they didn’t have the extra cover. The point is if you’re travelling to other countries, especially those under certain risk advisories issued by your embassy, it pays to consider these risk factors when purchasing your policy.

Limits in Pre-existing Coverage

You may already have pre-existing single trip travel insurance coverage from your health insurance provider (some companies also includes travel cover even if your main policy is, say, health or home insurance), and you’re probably thinking, “why get another policy, right?” Wrong. Check the terms of your existing coverage carefully and you just might discover how limited the terms are. You have to be utterly frank about your needs and compare these to the things covered by your existing policies. If it is limited, it’s probably as bad as having no cover at all.