Categorized | Travel Insurance

when to opt for annual travel insurance?

It is always a good idea to compare Travel Insurance and then buy it when you are planning your holiday, so that you get compensated in case of any unforeseen cancellation, delay in reaching destination, and loss of luggage etc. Generally a traveler will buy travel insurance as a precautionary measure against any loss pertaining to travel. There are generally two types of travel insurance policies that you can avail of, one is the single trip insurance and the other is annual travel insurance. At times, it is better for you to buy annual travel insurance than to get single trip insurance. Yet, sometimes, just the opposite appears to be correct. Now, the question is what is better, single trip insurance or annual insurance? The other associated question would be when is it apt to buy annual travel insurance?

To understand when to opt for annual travel insurance it is important to understand how exactly the two types of insurances vary. To understand the basic difference between the two it is important to compare the two insurance policies. The two types of insurance policies can be compared under the following head:

Coverage under Single Trip insurance plan:
It is important to check the Coverage of the Policy against its price. In a single trip policy, generally the following features are covered:
•Curtailment
•Emergency medical repatriation
•Personal accidents
•Missed departures
•Certain items are covered under personal possession category, are single articles and other valuables

The following are not covered:
•Delayed baggages are not covered
•Cancellation of a trip within 24 hours is not covered
•Limitations in personal possession spectacles sunglasses are not covered

Price and tenure:
The price that they charge for single trip insurance is justifiable if your trip is once or twice a year for approximately around 30 days even though the insurance is extendable up to 45 days. It is important to note that if you're sure about your travel plans and know that you're going to travel only once in a long period of time, it's better to buy single trip travel insurance.

Let us examine the coverage of an annual trip; generally all items are being covered in this type of insurance:
Coverage under Annual Trip insurance plan:
•All personal possessions
•Complete health cover
•Winter sports are insured

Price and Tenure of coverage:
The period of coverage in this type of insurance policy is much more than that of single trip insurance; it can range up to 120 days. The cost of an annual travel insurance policy would be at least twice or thrice in comparison to the price of single trip insurance but it is actually a great option for those who need to travel for more than once, or at least more than twice every year.

Now, once you know the differences between single and annual insurance policies do a honest and smart assessment of whether you really need to buy an insurance or not and that too whether it should be the annual scheme.

When should you actually choose annual travel insurance?
It might not be possible to predict exactly how many trips you are going to go for, but you can always have a rough assessment of the potential travel schedule. Find out approximately how much it will cost you to get single trip insurance for each of the holidays, compare the insurances and then do the accounting. If after calculation you feel that you are likely to make big savings on annual travel insurance, then it is well worth to buy it even if it is apparently more expensive.