Should I get annual or single trip travel insurance?

Key takeaways

• Single-trip cover is often suitable for occasional holidays, while annual multi-trip cover can be more cost effective if you travel several times a year

• The best policy depends on your trip details, including your destination, length of travel, planned activities, and any specialist cover you may need

• Factors such as your age, medical conditions, and who you are travelling with can affect the price and type of cover available

• Always compare policies carefully to make sure you understand what’s included, what’s excluded, and whether the cover meets your needs

What is the difference between annual and single trip travel insurance?

An annual travel insurance policy provides cover for multiple trips taken over a 12-month period. Whether you're planning one long holiday, several city breaks, or a mix of both, an annual policy can cover all your travel throughout the year.

An annual policy will usually include a limit on the maximum length of each individual trip, typically 31 days.

A single-trip policy, by contrast, covers just one specific journey. The cost is typically based on factors such as your destination, age, and the length of time you'll be away.

What is single-trip travel insurance?  

Single-trip travel insurance covers one specific journey, from the day you leave home until you return. It provides protection against a range of unexpected events, such as medical emergencies, trip cancellations, lost luggage, and travel delays while you're away.

The cost of a single-trip policy is typically based on factors including your destination, age, medical history, and the length of your trip. It can be a cost-effective option if you only travel occasionally or have just one holiday planned.

The average single trip price is * £19.58 ^{^} , but your actual quote will depend on lots of factors such as your age and if you have any pre-existing health conditions.  

* Data based on the average price of single trip travel insurance policies sold through MoneySuperMarket in April 2024. ^{^}

Buying single-trip travel insurance as soon as you book your holiday means you'll be covered for cancellation from that point onwards. If an unexpected event forces you to cancel before you travel – such as illness, injury, bereavement, or another insured reason – you may be able to recover some or all of your non-refundable costs.

Insurance could also be handy if the holiday company were to go bust before your trip starts.

If your single trip is a long trip such as a gap year or backpacking, a specialist backpackers insurance policy is usually a better option. This type of policy provides cover for a longer period and includes activities not usually found in standard travel insurance policies.

When should I choose single-trip travel insurance?

Single-trip travel insurance might be the best option for you if:

• You are only planning on taking one or two trips within the next year and it works out cheaper to buy separate policies for each journey

• You're unable to find an annual policy that covers your age group

• You’re being quoted very high prices for an annual policy, or not being accepted at all (i.e. because of pre-existing medical conditions)

• You're taking a longer trip that exceeds the maximum trip length allowed under many annual policies.

• You're travelling to a destination that requires specialist cover and only need insurance for that specific trip

What is annual travel insurance? 

Annual travel insurance, also known as multi-trip travel insurance, provides cover for all the trips you take over a 12-month period under one policy. It can be a convenient option if you travel regularly, whether you're planning several holidays, short breaks, or a combination of both.

Rather than buying separate cover for each trip, an annual policy means you only need to arrange your insurance once for the year. It can also offer better value if you take multiple trips, although it’s important to check that your policy covers your destinations, trip lengths, and any specific needs you may have.

When you buy an annual travel insurance policy, you choose the date your cover begins and the areas of the world you want your policy to include.

You can select European cover if you’re only planning trips within Europe, or opt for worldwide cover if you’re travelling further afield. Keep in mind that worldwide cover is usually more expensive, especially if it includes the US, where medical treatment costs can be significantly higher than in many other destinations.

An annual policy is usually more expensive than a single-trip policy, but if you are making two or more trips it can work out cheaper overall. It’s also more convenient as you just need to buy one policy per year, instead of buying cover for each trip you go on.

Annual travel insurance policies can sometimes have age limits, with some providers restricting cover for travellers over a certain age – which may be as low as 75. You may also find that having pre-existing health conditions affects your options, with some insurers charging higher premiums or declining to offer cover altogether.

If you’re unable to find suitable annual cover, a specialist insurance provider may be able to help, and a single-trip policy could be a more suitable option.

When should I choose annual travel insurance?

An annual travel insurance policy could be the best option if:

• You’re planning to take several trips over the next 12 months

• You want the convenience of arranging your travel insurance once and being covered for multiple trips throughout the year

• The cost of an annual policy works out cheaper than buying several separate single-trip policies

• You already have annual travel insurance included as part of another financial product, such as a packaged bank account, and the cover meets your needs

Before choosing an annual policy, it’s worth checking that the level of cover, destinations, trip length limits, and any age or medical restrictions are suitable for your travel plans.

How much does travel insurance cost?

An annual travel insurance policy is usually more expensive upfront than a single-trip policy because it provides cover for multiple trips over a 12-month period. However, if you’re planning several trips during the year, it will usually work out cheaper overall than buying separate single-trip policies each time you travel.

This table shows the average costs of travel insurance by policy type:

How should I decide between annual and single-trip travel insurance?

If you travel regularly and don’t want the hassle of arranging a new insurance policy every time you go away, an annual policy can offer greater convenience by covering multiple trips under one plan.

Before choosing between annual and single-trip travel insurance, it’s worth looking at your travel plans for the next 12 months. Make a note of any holidays, city breaks, business trips, or other journeys you’re likely to take, including your destinations, trip lengths, and any extra cover you may need, such as winter sports.

Once you have an idea of your plans, compare quotes for both annual and single-trip policies. An annual policy may offer better value if you’re travelling several times, while single-trip cover could be cheaper if you only have one or two trips planned. Comparing your options will help you find the policy that provides the right level of cover at the best price for your circumstances.

Does my destination affect how much travel insurance costs?

Yes. Your destination can significantly affect the cost of travel insurance.

Insurers usually price policies based on factors such as:

• Medical costs in the destination country – Countries with expensive healthcare systems tend to increase premiums. For example, treatment in the US can be very costly, so travel insurance for trips there is often more expensive

• Risk levels – Destinations with higher risks of illness, natural disasters, political instability, crime, or travel disruption may cost more to insure

• Distance and trip length – Longer trips and destinations further from home can increase the potential cost of claims

• Local healthcare arrangements – Some destinations have limited access to medical facilities, which can affect the insurer’s expected costs

What else should I consider when choosing travel insurance?

The right travel insurance policy will depend not only on the type of trip you’re taking, but also on who you’re travelling with and what you plan to do while you’re away. Other factors to consider include:

• A family or group policy could work out cheaper than buying separate cover (although if one traveller is considered higher risk, it may increase the overall cost)

• If you’re travelling for an extended period, a backpackers policy may provide more suitable cover

• If you’re going on a cruise, you may need a specialist cruise insurance policy to cover cruise-specific risks

• You may need additional cover if you’re planning winter sports or other extreme sports

Can I get travel insurance with pre-existing medical conditions?

Yes, you can usually get travel insurance if you have pre-existing medical conditions, but you’ll need to tell the insurer about them when you apply.

A pre-existing medical condition is any illness, injury, or health condition you’ve had before taking out the policy. This could include conditions you’re receiving treatment for, taking medication for, or have recently been diagnosed with.

When you declare a medical condition, the insurer may consider factors such as:

• The type of condition and how it affects your health

• Whether the condition is stable or has recently changed

• Any medication, treatment, or medical advice you’re receiving

• Your destination and the level of medical cover required

You may still be able to get cover, but you might need to pay a higher premium or choose a specialist travel insurance policy that covers medical conditions.

Why should I compare travel insurance with MoneySuperMarket?

There are many different travel insurance policies available and the best way to find the right policy, at the right price, is to compare insurance. It’s quick and easy and you will be able to look at a range of different policies before making your decision. You’ll be shown the price and the features of each policy.

Check out our Super Save Club homepage to learn more about the amazing rewards up for grabs when you compare and buy selected products with MoneySuperMarket – including your annual travel insurance.