When one is looking for travel insurance and travels quite often- one wonders if he or she should opt for Annual Travel Insurance Plan instead. Moneysigma will help you jot down and understand the reasons when you may want to opt for Single trip travel insurance or an Annual plan.
The basics : Types of travel insurance
Types of travel insurances in Singapore can be usually categorised into two types.
- Single Trip Travel Insurance
- Annual Travel Insurance
Insurers offer these types with different marketing packages, however the basic idea of these remain the same- i.e., Single trip covers one trip to and fro, whereas annual travel insurance covers multiple trips in the span of the policy period.
Do you travel quite often to warrant annual travel insurance?
If one travels quite often, then its a no brainer to opt for Annual Travel Plan. You’ll save on the hassle of purchasing one every single trip. However, before you go ahead and finalize on the travel insurance plan- you would like to define how often is your quite often. Some insurers have travel plans costing about three to four times of the single trip. That means- you’ll save on costs if you are sure of traveling more than three to four times to the designated zone/ region. Else- you may want to keep with your single trip travel insurance. Do remember to buy them though.
Do you travel often to the same country/regions?
Insurers offering annual travel insurance plans- have them for either for specific countries or for regions. E.g., Some may have their travel insurance for Asia / Asean or some may offer worldwide. If you fly often to a country in region “A” and “B” – but the insurer’s annual travel plan segregates these regions- then you may end up buying worldwide annual travel insurance which might be costlier if you had chosen single trip instead.
Are your single trip travel plans for very long durations?
As per most insurer’s policy documents, every single trip on your annual plan cannot exceed certain number of days. 90 days usually is the norm- however, it is always good to check on the fine prints. If your single trip lasts more than 90 days- then you will have to choose single trip insurance. Your annual travel policy may not cover it.
Other concerns : Some customers wonder if the annual trip has more coverage than single trip. This usually differs from plan to plan and various insurers. However- as per our research on the various insurers in Singapore, a plan offered on single trip usually do not have different coverage than the equivalent annual trip plans.
To summarise, here’s what you may want to run your decisions through.
Choose Single trip travel insurance if :
- You do not travel often
- Your single trip lasts for more than the minimum single trip duration mentioned on your annual trip policy.
- You travel to various countries that have to be covered by the “Worldwide” annual plan- which may be costlier than each single plans.
Choose Annual travel insurance if
- You travel more than three to four times a year and/ or the total price of an annual plan is less than all your single trip plan’s cost summed up.
- Your single trip does not last more than the minimum duration mentioned on an annual policy. (Usually is 90 days). For e.g., Your annual travel policy will not cover you if your trip was for 100 days long.
- If your multiple travels are usually to the same countries or region mentioned in your annual plan or worldwide annual plan costs less than single trip cumulatively.
