The holiday season is rapidly approaching. For most of us, it is a joy to plan for your next holiday trip. Besides exploring where you and your family or friend(s) want to go, you also need to do a few other things. Buy flight tickets, arrange for a visa, pack bags etc. Read our Ultimate Travel Checklist to make sure you don’t miss anything! One of the things that you need to arrange is adequate Travel Insurance.
Why do you need travel Insurance?
Do you really need Travel Insurance? Here are 5 reasons why you should not travel without it. Travel Insurance policies often protect you in emergency situations such as lost baggage, theft, and travel delay, but also need for medical care.
To help you decide which policy to buy we have listed 5 things to look out for when buying your Travel Insurance Policy. When the holiday season approaches many insurance companies help you by offering discounts on their plans. Annual plans get an average of 10% to 15% discount, while single trip plan discounts may be as high as 30% to 50% off.
Annual Travel Insurance Plan or Single Trip?
When is it better to buy a Single Trip Travel Insurance or an Annual Travel Insurance Plan? Firstly look at the specifics of a single trip plan versus an annual plan. You also need to determine which regions you will be travelling to, the length of your trip, number of trips and the level of coverage you require.
What is the difference?
A Single Trip Insurance Plan only protects you for a single trip. A trip can be as short as 1 day up to a maximum of 180 days. You only pay for the exact amount of days you will be travelling and for the specific countries or regions.
Even if you make multiple trips a year, you could still be better off with multiple single trip policies. On the down-side, you always need to remember to buy a Travel Insurance for every trip you make. Even that weekend getaway to Batam requires you to buy a policy.
For example, if you travel to New York for one week and to Kuala Lumpur for a week, you will be better off with 2 single trip policies than an annual plan.
When to buy an Annual Travel Insurance Plan
An annual plan is typically for people who travel several times a year and want to save money and the hassle. Each trip you make can have a maximum duration of 90 days under an annual travel plan. If you want to travel for more than 90 days it is better to book a single trip plan which has a maximum duration of 180 days. In most cases, the coverage level is mid to high for an annual plan.
Although buying an annual plan saves you the hassle of buying multiple insurance plans throughout the year, comparing and buying a single trip travel insurance plan becomes quite easy on Insurance Market. Over 15 insurance plans are available (including promotions) and all your policies will be neatly stored in your personal online account.
You can do several short trips and be better off buying single trip plans every time. On the downside, if you do not know how many days you’ll be travelling in a year upfront, you might end up paying more than what would you have paid for an annual trip policy.
Expats need to take into account that usually their international medical plan already caters for overseas medical care. In that case, they may be over-insured.
When do I buy an annual plan?
A simple answer would be if the total amount of all your single trip Travel Insurance Policies surpasses the amount you need to pay for an Annual Travel Plan assuming coverage is equal.
You can input all your different travels onto Insurance Market for the next year, ad the amounts and see if it is cheaper than an annual plan. This allows you to make the most cost-effective decision.
Unfortunately, it is not easy to give you a direct answer since there are many factors that influence the premium, such as:
- The number of days per trip
- The region of your trip
- The level of coverage
For example, if you will be travelling more or equal to 3x 15 days in the same region – Asia Pacific – and on the same coverage level, it is cheaper to go for an annual plan.
Allianz Global Assistance Singapore has recently rolled out a 35% discount on its annual travel plans up to 31 July 2017. The level of coverage for their silver and gold plans is attractive given the discounted price of the policy. For this promotional price, Allianz Global Assistance policy is worth considering for this promotional price. Make sure you buy it before the promotion expires!
Hopefully, this article gives you a better understanding of when to buy Single Trip Plans or an Annual Plan. A great tip for price-sensitive people would be to buy your policies close to holiday seasons because that is when most insurance companies will be giving plenty of discounts. Enjoy your next trip!