When Should You Buy Annual Travel Insurance?

全年旅遊保

Hong Kongers are a well-travelled bunch, and will grab any opportunity to go shopping in Japan, lounge on a beach in Thailand or buy designer goods in Europe. But going on multiple trips a year also means that you could end up spending a ton of money on travel insurance.

One solution is to buy an annual travel insurance plan instead, thereby freeing you from the hassle of having to book travel insurance each and every time you decide to go on holiday. So how do you know if annual travel insurance is right for you? Ask yourself these 3 questions.

Table of contents: Annual travel insurance

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What is annual travel insurance?

Annual travel insurance provides comprehensive coverage for frequent travelers for up to 1 year, including emergency medical expenses and additional personal protection features.

What is the difference between one-off travel insurance and annual travel insurance?

One-off travel insurance is suitable for a single trip or vacation with a specific duration of time. On the other hand, annual travel insurance covers multiple trips within a year, providing continuous coverage and cost-effectiveness for frequent travelers.

One-off Travel Insurance Annual Travel Insurance
Coverage Single trip or vacation Multiple trips within a year
Trip Duration Specific duration of time Maximum trip duration for each individual trip
Advantages Suitable for a single trip or vacation Convenience and cost-effectiveness for frequent travelers
Continuous coverage throughout the year
Time and potentially money-saving for multiple trips

When should you get an annual travel insurance? 3 questions to ask

Will annual travel insurance cost less than single-trip travel insurance?

As a general rule of thumb, the more frequently you travel, the longer you spend abroad and the further you go, the more you’ll end up paying when you buy single-trip travel insurance policies.

At some point, you could find yourself spending so much that it would be cheaper to just buy an annual travel insurance policy that can cover you the entire year.

The cheapest annual travel insurance policies usually cost about HK$1,100 a year. Compare that to a single-trip travel insurance policy for a week-long trip to Sydney, which would cost approximately HK$160.

This means that if you make more than 8 trips a year to various destinations, it would be cheaper to simply get an annual policy instead. This policy will be able to cover you on all your trips over the period of a year.

Would it be more convenient to buy annual travel insurance?

When you buy an annual travel insurance policy, you don’t need to buy any more travel insurance for the rest of the year. You are covered for an unlimited number of trips of up to 90 days each.

That means that if you spontaneously book a plane ticket to Sanya departing tomorrow, you don’t have to crush your YOLO spirit by stopping to book travel insurance. If you see a last-minute sale on tickets to London, you’re free to book a flight safe in the knowledge that you’ve already got travel insurance.

How much you end up paying for your annual travel insurance will hinge on the furthest country you intend to travel to. An annual insurance plan covering Asia would obviously be cheaper than one offering worldwide coverage.

Do you enjoy more coverage with annual travel insurance?

Compare an annual travel insurance plan you’re interested in with your go-to single-trip travel insurance policy, and you might be surprised to find that they’re not exactly the same.

When comparing policies, pay attention to their medical coverage section, especially the part about medical evacuation. Also compare the flight delay section and check whether they offer coverage in the event of flight cancellations. These are the sections that cheaper travel insurance policies often skimp on.

MoneySmart’s Top 5 Most Popular Travel Insurance

Which travel insurance is good for travelling to Japan? It really depends on your travel needs and the coverage you would want! If you are planning to ski or drive in Japan, it would be better to get a travel insurance that offers ski coverage and car rental excess. Check out our latest report on MoneySmart’s Top 5 Most Popular Travel Insurance. Not only would we reveal the most purchased travel insurance plans of the year, but we would also uncover the preferred travel insurance for Hongkongers’ favourite destinations, including – you know it, Japan!

Frequently asked questions: Annual travel insurance

What is annual travel insurance and how does it differ from one-off travel insurance?

Annual travel insurance provides comprehensive coverage for frequent travelers for up to 1 year, covering multiple trips within that period. In contrast, one-off travel insurance is suitable for a single trip or vacation with a specific duration of time.

When should I consider getting an annual travel insurance policy?

You should consider getting an annual travel insurance policy if you make more than 8 trips a year to various destinations. It would be more cost-effective compared to buying single-trip travel insurance policies for each trip. Additionally, it offers convenience as you are covered for an unlimited number of trips throughout the year.

How much does annual travel insurance cost compared to single-trip travel insurance?

The cheapest annual travel insurance policies usually cost around HK$1,100 a year, while a single-trip travel insurance policy for a week-long trip to Sydney would cost approximately HK$160. If you make more than 8 trips a year, it would be cheaper to opt for an annual policy instead.

Is annual travel insurance more convenient than buying single-trip insurance each time?

Yes, annual travel insurance is more convenient as you don’t need to purchase separate travel insurance for each trip. With an annual policy, you are covered for an unlimited number of trips up to 90 days each. This means you can book spontaneous trips without the need to stop and purchase travel insurance.

Does annual travel insurance provide better coverage compared to single-trip insurance?

Annual travel insurance plans may offer more comprehensive coverage compared to cheaper

single-trip insurance policies. It’s important to compare the policies, paying attention to medical coverage, including medical evacuation, as well as coverage for flight delays and cancellations.

 

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