What is annual multi-trip travel insurance?
An annual multi-trip travel insurance policy will cover you for as many trips as you like during a full year – but be careful, because there could be a limit on the duration set by your insurer.
Often, the type of cover you get with an annual multi-trip policy is the same as you would get for single trip travel insurance, but it means you don’t need to keep buying insurance each time you go away within the year.
Many holidaymakers choose annual travel insurance because it can work out cheaper than taking out a single trip policy every time, if you go on more than three or four holidays a year to the same region.
For under 25s, the average price of travel insurance for a single trip is £9.54 and the average cost of an annual multi-trip policy is £20.19. For over 25s, the average price of a single trip policy is £16.93 and the average cost of an annual multi-trip policy is £50.05. According to MoneySuperMarket data for January to May 2018.
What does multi trip travel insurance cover?
The level of cover you receive will probably vary from insurer to insurer, but the average multi trip travel insurance policy should at least include the following:
- Medical cover including repatriation costs
- Cancellation and delay cover
- Loss of baggage cover
Other types of cover included in a comprehensive annual multi trip policy could include:
- Cover for valuables and money
- Scheduled airline failure insurance
- Legal expenses cover
How much annual cover should you take out?
As a good rule of thumb, you should aim to have the following amounts as a minimum in each area of cover:
- Medical cover: in the region of £5 million
- Personal liability: cover amounting to around £1 million
- Cancellation cover: of equal value to your holiday (including the cost of prepaid excursions). Cover is usually on a per person basis so to cover a £2,000 holiday you'd need cover of £1,000 each as a minimum.
- Baggage and personal possessions cover: to cover the cost of replacing your suitcase and contents should it be lost or stolen. You should also consider the cost of single items such as your phone, camera, tablet or laptop, and factor this into the cover level you require.
- Holiday spending money cover: of around £250 or equal to the value of the cash you will be taking with you.
Advice from MoneySuperMarket's spokesperson Kevin Pratt, on the minimum level of cover your travel insurance policy should include.
How many days can I travel for on annual insurance?
Annual travel insurance is intended to cover those who go on multiple holidays each year, and it is common for the cover period to be limited to around 31 days of consecutive travel per trip. However, the number of trips allowed per year is usually unlimited, as long as you return within the number of days specified by the insurer.
Is annual travel insurance the best option?
Annual travel insurance is usually the favoured type of policy for frequent holidaymakers. Just under a quarter of people (23%) choose an annual policy, with three quarters opting for single trip cover. That’s according to MoneySuperMarket data for 2018, showing the number of policies sold between January 1 and May 31.
While annual travel insurance is more cost-effective if you take three or more trips a year, it may not be the best option for you.
Circumstances when multi-trip travel insurance may not be the best option:
- If you think you may only go away once or twice – or you’re likely to go to two very different regions – then a single trip policy for each holiday may be more economic
- If you plan to travel with a group or with your family, you may find that it is more cost effective to purchase a group travel insurance policy or family cover
- If you want to enjoy your destination for more than a month, you’ll need to consider an extended stay policy
- If you plan to go travelling, a backpackers policy could be a good option because it will cover you for travel to a variety of destinations for a longer duration.
23% of people choose annual travel insurance, 76% choose single trip, and under 2% chose backpacker insurance. That’s according to MoneySuperMarket data from January to May 2018 and based on a sample size of 774,739 people.
What are the benefits of annual multi-trip travel insurance?
Like any insurance, multi-trip travel insurance has both benefits and drawbacks, but if you travel more than two or three times a year, it’s definitely worth considering.
The benefits of multi-trip travel insurance include:
- It may be cheaper than buying four or more single trip policies
- You only need to buy one policy a year so you don’t have to spend time comparing quotes every time you plan a holiday
- You could get cover for any future trips that you book during the life of the policy
What are the drawbacks of annual multi-trip cover?
The limitations of multi-trip travel insurance may include:
- Cover isn’t specific to each trip, so certain activities might not be insured, for example
- If you stay over 30 days on one holiday, you might not be covered
- You may end up over-paying if you don’t end up going away more than three times within a year
Based on the median price of premium for annual multi trip travel insurance policies taken out through MoneySuperMarket from 2015 to May 2018. Other factors can affect the price difference in premiums, not just the destination.
Tips for buying annual multi-trip travel insurance
When taking out multi trip travel insurance, it’s important to ensure you’re sufficiently covered, without paying over the odds. Think about:
- Do you need extras such as winter sports or cruise cover?
- Do you need gadget cover, or are you insured on another policy or by your mobile phone provider?
- Have you declared pre-existing medical conditions? If you haven’t, your insurance may be invalidated
- Are you undergoing medical tests? You should also declare this, because if you are later diagnosed, it’s treated as a pre-existing condition
- Are all your planned activities covered?
- How long will you be away for each trip? Don’t get caught by trip limitations set by insurers
- How old are you? Insurers may impose an upper age limit
- Do you have an EHIC card? Make sure you apply if you don’t have one, and carry it with you if you’re holidaying in Europe.
Compare annual multi-trip travel insurance
One of the most important things when it comes to comparing annual travel insurance is to make sure you choose the right destination. You’ll be asked to choose either Europe, Worldwide, or Worldwide (excluding USA, Canada and the Caribbean), so make sure you choose the right one. If you’re unsure which country your destination is in, you can check the policy wording to be absolutely certain.
When you compare annual multi-trip travel insurance quotes, you’ll be able to review some key factors in an easy-to-read table that highlights the policy’s defaqto rating; the maximum number of days per trip; the maximum excess; and the amount of medical, cancellation, and baggage cover.
You can adjust the amount of cover by using the options on the results page, and this will filter our results so you can see more tailored quotes. It’s also possible to re-order the quotes by defaqto rating, as well as policy price. When choosing an annual travel insurance policy, make sure you take into account factors such as the excess and the defaqto rating.
It’s essential that you review the details of the potential policy before you purchase, so you can make sure that you’ve got the right level of cover for your trips. Make sure you read the policy wording and pay attention to sections such as the exclusions and single item limit, so you can be confident that you have enough insurance to cover you on your holidays.