Six things to consider before buying annual travel insurance

Ravi Ghelani, a finance expert at consumer group Which?, has outlined six key checks to make sure policies still offer adequate cover, especially for those taking out annual policies.

Annual cover can save money for those who travel frequently throughout the year, but changes in health, destination, or planned activities could affect whether the policy still meets a traveller’s needs.

Depending on where you are going on holiday and how often, it might be cheaper to buy other travel insurance. (Image: Getty)

How to check if annual travel insurance is worth it

Mr Ghelani said: “A single-trip policy may work out cheaper if you do not expect to travel again.

“But do not rule out annual cover too quickly – if you are taking one big trip, check how much more an annual policy would cost.

“The difference may be smaller than you expect, and if you travel again later in the year, annual cover could work out better value.”

Which? reviewed 138 travel insurance policies, considering factors such as cancellation limits, baggage cover, and requirements for medical disclosure, to assess whether annual policies deliver value across multiple trips.

Changes to your health

According to Mr Ghelani, 90 per cent of annual policies reviewed required policyholders to declare any new medical information before travelling.

The Government website Money Helper explains that insurers may define pre-existing medical conditions differently, but they typically include conditions awaiting surgery or test results, any health issue discussed with a doctor in the past year, or serious conditions such as cancer or heart problems.

Cancellation limit

A Government website lists cancellation cover as essential, recommending at least £2,000 in protection.

However, policyholders should review the terms carefully as not all policies cover every scenario leading to cancellation.

Coverage for baggage and belongings

Baggage cover also varies by policy, and Mr Ghelani advises travellers to pay close attention to individual limits.

He said: “Also look out for any separate single-item, valuables or gadget limits, as these may be lower than the overall baggage limit.”

The government recommends that a good policy should offer at least £1,500 in baggage cover.

Activities

Adventure travellers should also check what activities are included.

All 138 annual policies reviewed by Which? covered hiking as standard, but not at the same altitude.

Mr Ghelani explained: “Altitude limits varied from 1,000 metres to 5,000 metres, with a median limit of 3,000 metres.

“Some providers may offer higher altitude limits as an optional extra.

“So, before you strap on your walking boots, check whether your route falls within the limit of your policy.

“For example, Mount Toubkal in Morocco reaches 4,167 metres, which would exceed the standard hiking limit in many of the policies we analysed.”

Winter sports are another area to consider.

The Government website recommends winter sports cover as a valuable add-on for activities such as skiing and snowboarding.

Money Helper advises that a good policy should cover personal or hired winter sports equipment and include benefits such as cover for lost ski packs or slope closures.

Where you are travelling

Travellers should confirm which countries are included in their annual policy, especially when travelling outside of Europe.

Some insurance companies categorise global regions differently, and not all destinations may be covered under standard “worldwide” policies.

Additionally, there may be no cover for travel to countries where the Foreign, Commonwealth and Development Office advises against all or all but essential travel.

How many holidays you are going on

For those who only plan one trip, single-trip cover may be more cost-effective.

Citizens Advice said that for travellers planning multiple holidays in a year, an annual policy could still offer better value than several single-trip policies.

Do you buy annual travel insurance? Let us know in the comments.