When Should You Buy Annual Travel Insurance?


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 three questions.


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.