Buying annual travel insurance can help you save a lot of money. But exactly how much?
Singapore has become a nation of experienced travellers. In fact, travelling overseas has become so commonplace in Singapore that, these days, some jetsetters I know can just go on spontaneous trips without much planning.
This means that their travel insurance could add up and buying annual travel insurance a better choice than many single-trip travel insurance policies. Here’s a simple infographic to illustrate the difference, and 3 key questions to consider:
1. Will annual travel insurance be cheaper for me?
If you’re travelling so often that the pages of your passport looks like the scribblings of a child’s colouring book, it’s a given that buying annual travel insurance is cheaper in the long run.
For a simple comparison, the cheapest annual travel insurance costs you about $220 a year.
This may seem like a hefty amount at first, but consider this: a single-trip travel insurance plan for a week in the US will cost about $70 at least.
That means buying single-trip insurance for 3 or 4 overseas trips in a year can cost you the same as an unlimited number of trips on an annual insurance plan.
Do note that the cost of yearly travel insurance depends mainly on the furthest country you’re planning to visit that year.
Naturally, restricting your coverage to countries in Asia, for example, would be cheaper that having coverage worldwide. This means that if you do have to travel outside Asia, you will need to think about buying a single-trip policy, which will not only add on to your costs, but also means adding on to your concerns before you travel.
2. Will annual travel insurance be more convenient for me?
Most annual travel insurance policies on the market today are for unlimited trips within a year-long timeframe, as long as each trip does not exceed 90 days.
This means, with an annual travel insurance plan, you can travel at any time without the hassle of finding the cheapest travel insurance each time you plan to leave the country.
It also means you’re covered whether it’s a fortnight in the US or Europe, a weekend in Bangkok or Batam, or just an afternoon in JB.
In the example above of Mr Teo, if he only buys single-trip travel insurance, it would mean having to do research on the cheapest travel insurance each time he plans to leave the country.
And even with the best travel insurance comparison, Mr Teo still has to make sure that he’s sufficiently covered for each trip. Buying annual travel insurance is as convenient as clicking a button and you’re covered for the rest of the year at the same level of coverage. Which actually brings me to the last question…
3. Does annual travel insurance provide more coverage?
Considering that an annual travel insurance policy covers you globally, you are covered wherever you travel to within this time frame.
However, once you drill down into the specific benefits for each travel inconvenience/emergency, an annual travel insurance technically does NOT provide more coverage than single-trip.
Let’s use one of the cheapest annual travel insurance policies around as a benchmark. At $220 per year, it gives you medical coverage for up to $200,000, flight delay coverage of up to $300 and trip cancellation coverage of $5,000.
This is more of less on par with most basic single-trip travel insurance plans in Singapore, although there are certain insurers who offer higher benefits.
The amount of coverage you get with annual travel insurance depends greatly on the insurer, so you should definitely compare the different annual travel insurance plans available before you commit for the year.
Would you recommend annual travel insurance? Why or why not? Leave a comment below.