Singaporeans are known to be crazy about traveling. We make around 5.2 trips per year on average, according to performance marketing technology company Criteo.
For a country that has shown such enthusiasm for traveling, one useful skill to pick up is being able to discern and choose a good travel insurance policy. After all, you wouldn’t want to allow a single misfortune to ruin a happy and well planned holiday.
When it comes to picking out good travel insurance policies, one of the common dilemmas frequent travelers often have is choosing between single or annual travel insurance policies.
There are two main factors to consider when deciding between single or annual travel insurance: Cost-effectiveness and convenience.
Cost-Effectiveness – Single vs Annual Travel Insurance Policies
The cost of insurance is a major factor for consideration when deciding between single or annual travel insurance. As consumers, you want to get the most bang for your buck. When it comes to travel insurance, cost-effectiveness is a function of how often you travel.
Pro: Single Travel Insurance Adopts A Pay-Per-Use Concept
Buying single travel insurance is like buying an a la carte item from the menu, i.e. a pay-per-use concept. The advantage of getting single travel insurance is that you only spend on what is necessary and when there is a real need for travel insurance.
Con: Single Travel Insurance Has A Higher Cost Per Trip
Like with many goods and services, the option of flexibility and choice often comes at a higher price. This means that single travel insurance comes at a higher cost per trip compared to annual travel insurance, especially for frequent travellers.
As a rule of thumb, the cost of annual travel insurance is typically the cost of 3 to 5 single travel insurance (or 2 to 3 weeks of overseas travel), depending on your choice of destination.
Pro: Annual Travel Insurance Adopts A Subscription Concept
On the other hand, buying annual travel insurance is like getting a buffet spread. You pay a single price to get yourself a variety of unlimited options, similar to many subscription models. For frequent travelers who typically do not have a say in their travel plans (e.g. work trips), annual travel insurance can be cost-effective. This is especially true if you travel more than 6 times a year.
Con: Annual Travel Insurance Comes At A Fixed Cost
Unlike single travel insurance, annual travel insurance comes at a fixed price. Regardless of whether you traveled or not during the year, you have to pay for your annual plan. If you end up traveling less than expected, the cost of your annual travel insurance can be higher than getting separate single travel insurance each time you travel.
Over at Insurance Market, we help you compare travel insurance plans for both single trips as well as annual travel insurance policies. If you are intending to buy an annual travel insurance policy, we will let you know what are the best plans you should consider based on the countries that you are intending to travel to.
Convenience – Single vs Annual Travel Insurance Policies
When it comes to traveling, researching about the destinations, activities to do and insta-worthy places to visit is often the first thing many people do.
The truth is that researching on travel insurance and making sure you are sufficiently insured before each trip is not as much fun, and is very often the last thing on your mind that you think about when planning for an overseas trip. Nobody plans a holiday with the expectation that an unfortunate incident may occur.
As a result, there is a tendency for you to forget about getting travel insurance altogether.
Here’s where Insurance Market can help you. Rather than to spend hours researching on the best travel insurance policies (which is not what you want to do anyway when planning for a holiday), we can help you find the best policies based on your specific requirements. You can filter, compare and buy your travel insurance directly with us.
Insurance Market is able to offer you 35 different plans from 12 insurers.
Con: Tendency To Forget About Getting Single Travel Insurance
Did you know that your single travel insurance has to start on the date of departure and end on the date of arrival? If it doesn’t, your travel insurer has the right to void your claims.
For the lucky ones, you might remember to get your travel insurance in the nick of time at the airport. For those who aren’t, it can turn out to be a life lesson you won’t forget.
Pro: You Won’t Forget To Get Insured With Annual Travel Insurance
With annual travel insurance, you don’t have to worry about making such a mistake. You will be covered for the rest of the year the moment your annual travel insurance kicks off. It is as convenient as clicking a button.