When it comes to travel insurance, one of the most common questions is, ‘Isn’t single trip insurance cheaper than annual travel insurance? Then why would I sign up for the latter, when a single trip cover is saving me a few bucks?’ Not all of it is true, especially if you are a frequent traveler. Opting for  travel insurance entirely depends on the kind of traveler you are – a frequent traveler or an ordinary traveler.

Either way, getting  travel insurance is necessary, just to make sure you and your family are protected in case of an accident, loss of personal belongings, travel inconvenience, etc.

Annual travel insurance might come up as an expensive venture, however, for frequent travellers, it’s probably the most viable option out there.

Before delving deep into the art of saving money, let’s first see what annual travel insurance actually is.

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Annual travel insurance in a nutshell

In short, you make a one-time investment to purchase an annual travel policy instead of putting your money at work before every trip in a given year. It is a more convenient and feasible option for both business and leisure travelers.

An annual insurance policy usually offers the following:

• Trip cancellation coverage
• Covers medical expenses
• Coverage for loss of luggage
• Delay in flights and other flight related inconvenience coverage
• Flight reroute expenses
• Travel inconvenience coverage
• 24-hour hotline for emergency situations

Certain insurance policy providers also offer the following:

• Cover for aadventurous sports like bungee jumping, scuba diving, rafting, etc.
• Identity theft cover
• Rental-car collision cover

Apart from these, insurance providers might offer you other additional benefits, which you need to check with the service provider before signing up.

How to save money with yearly travel insurance

Did you know that you can save a lot more money with an annual trip cover? Most frequent travellers are opting for it, and it’s time you should consider it too! Here are 5 essential tips on how you can save more with a yearly insurance policy.

1. Pay low premium: For multiple trips in a year, signing up for annual travel insurance is the best option. You will eventually end up paying substantially lower premium compared to a single trip policy!
2. Choose your insurance plan wisely: Make sure that you are opting for the best plan. Do you want independent travel cover for each member of your family or a single plan for the adults? Individual insurance plans are generally more expensive, so choose as per your requirement.
3. Know your travel duration: You have to pay more for longer duration stays. So, make sure you are clear about your travel plans and have all the itineraries set. Also, how many days of insurance cover do you need in a calendar year? If you have all these in place, you can save more money while purchasing the insurance.
4. Compare deals and benefits: In Malaysia, you will find a host of travel insurance policy providers, including and not limited to, Allianz, AIG, RHB, Maybank, MSIG, etc. Compare the deals, offers, and rates offered by the insurance service providers and choose the plan that suits you best. In this way you will be able to save a few extra bucks.
5. Geographical area: Know the areas that fall under the insurance policy. You don’t want to fall sick, meet with an accident or lose your money in a place that’s not covered under the policy, right?

A well-known insurance policy provider will always tell you the benefits of an annual travel plan before you take it up.

So, are you a frequent traveller? What kind of travel insurance plan are you exactly looking for?

This informative article was contributed to Leisure Freak by Syed Faraz

Syed is a Financial content analyst/adviser of bbazaar.my, an online platform that provides information and advice on personal finance and money management.