If you’re buying a new travel insurance policy every single trip, there’s a good chance you’re spending more than you need to. A quick comparison could save you money year after year.
This post is general information only and not financial advice.
What Does Single Trip Cover Actually Cost?
For context, a two-week trip to Europe for someone in their late 30s costs around $100 for single trip cover. That’s a reasonable price for one trip, but it adds up quickly if you’re travelling more than a couple of times a year.
When Does an Annual Policy Make More Sense?
An annual multi-trip policy excluding the USA and Canada costs about $318, with a cap of each individual trip at 21 days. The maths is straightforward: take more than three trips a year and the annual policy comes out ahead. Even if you only travel three times, you’re roughly breaking even while getting the convenience of always being covered. Depending on the policy it could mean you’re also covered for domestic trips you might not normally seek coverage for.
Don’t Forget to Check Your Credit Card
Before you buy any policy, check what your credit card already includes. Many cards with annual fees offer complimentary travel insurance as a cardholder benefit. If yours does, you could be paying twice for the same cover without realising it. It’s worth spending five minutes reviewing your card’s product disclosure statement before your next trip.
How to Work Out What’s Right for You
Count how many trips you have planned this year, estimate the cost of single trip cover for each, then compare that figure against an annual policy premium. Factor in any existing credit card cover before you spend a cent. The numbers will tell you which option makes sense for your travel pattern.
Have you made the switch to an annual policy? Comment below and let us know how you handle travel insurance. Follow 5 Star Trip for more travel money tips and planning guides.