Single-trip vs annual travel insurance: Which is best?

Whether you’re taking a short break to Europe or planning multiple trips throughout the year, a travel insurance policy provides financial protection in the case of medical emergencies, travel disruptions and loss or damage to personal belongings.

Travel insurance companies usually offer the choice of a single-trip or annual multi-trip policy. But which is right for you?

We compare both types of travel insurance to help you decide which is the best – and most cost-effective – option for you.

What is single-trip travel insurance?

Single-trip travel insurance covers you for one holiday to a specific destination. It starts from the moment you purchase your policy and ends on your return home.

Buying a single-trip policy as soon as you book your holiday will provide you with the maximum amount of financial protection. It means you are covered if your holiday company collapses before you depart or if you need to cancel your trip due to illness or injury.

Why choose single-trip travel insurance?

Single-trip travel insurance can be the better option if:

• You’re taking no more than two trips a year
• You need cover for a pre-existing medical condition
• You need cover for a particular activity on one trip, but not all, like skiing
• You can’t find an annual policy with a broad enough age limit

On the other hand, buying an individual policy for each holiday can add up, and the fixed-term cover offers no flexibility if the dates of your trip change or you wish to extend your holiday. You’ll need to remember to buy a new policy every time you travel, too.

What is annual travel insurance?

Annual travel insurance (also called multi-trip insurance) lasts for a full calendar year and covers all trips within that time.

You’ll need to declare where you plan to travel when comparing policies – whether that’s just to Europe, everywhere excluding the USA, Canada, Mexico and the Caribbean, or worldwide.

Many annual policies limit coverage to trips up to 31 days. If you plan to travel for longer, a long-stay policy may be better for you. Check the terms before buying.

Why choose annual travel insurance?

As well as offering the convenience of a one-off purchase, annual multi-trip travel insurance can be the better option if:

• You’re planning on taking more than one trip a year, and it’s cheaper than buying individual policies
• You’re planning to travel within the UK as well as abroad, as many policies include cover for domestic holidays

It can be a cost-effective option if you know exactly which trips you’re taking, but if you’re a spontaneous traveller it may not always offer the best coverage.

For example, if you purchased an annual policy for Europe, you would need to take out an additional policy if you decided to book a last-minute holiday to the USA, which could end up costing you more.

In addition, annual travel insurance often has age limits on policies (usually 75) and may not offer the best value for money if you have a pre-existing medical condition. Specialist cover can be the better option. The Moneyhelper directory is a good place to start.

Is annual travel insurance cheaper than single-trip insurance?

With prices starting from as little as £2.28*, a single-trip policy is usually the cheaper option if you’re taking just one trip. Annual policies compared on TravelSupermarket start from £10.88* – but they can be better value if you’re taking multiple trips a year.

For example, a quick search on TravelSupermarket for an annual travel insurance policy for Europe surfaced prices from £10.88.

When we compared this to two single-trip policies for Europe – one for a four-night break in Spain costing £4.86, and the other for a seven-night holiday in Turkey costing £7.28, or £12.14 for both – the annual policy came out as the cheaper option.

That said, it all comes down to the type of trips you’re planning. If you’re taking an adventure-packed ski holiday to Canada and a city break to Rome, an annual worldwide policy with winter sports coverage will probably cost more than a one-off policy for Canada and another for Rome.

As always, it’s best to compare all your travel insurance options before purchasing a policy. Even a five-minute search can save you money and get the right coverage for you.

What does travel insurance cover?

Typically, both annual and single-trip travel insurance policies cover:

• Medical expenses (including emergency repatriation)
• Missed departures and delays
• Cancellation or curtailment of your holiday
• Baggage and personal possessions (including travel money).

The amount of cover for each category will vary per policy and some may not include all as standard, so always check the policy small print before buying.

What else should you consider?

Other types of insurance: If you’re planning on being away for an extended amount of time or visiting multiple destinations on one trip, consider backpacker insurance for specialised coverage. The same applies if you’re taking a cruise.

Extra cover: Planning to go skiing or snowboarding on holiday? Winter sports coverage is a good idea. But if only one holiday requires this extra cover, a single-trip policy may be a more cost-effective option than annual travel insurance.

Pre-existing medical conditions: It’s essential to declare any pre-existing medical conditions when buying travel insurance, as it will void your policy if you don’t. Annual policies can be expensive if you have a pre-existing medical condition, so it’s worth comparing a range of policies. If you’re struggling to find affordable cover, the Moneyhelper directory can help. You can also call them on 0370 950 1790.

Existing annual insurance: You may already be covered by an annual insurance policy through work benefits or as a perk with your bank account. It’s worth checking if you have any existing cover in place before taking out an annual policy.

*Prices are taken from the TravelSupermarket website and are correct as of 21 February 2025. Single-trip policies starting from £2.28 based on an individual aged 30 with no pre-existing medical conditions taking single-trip cover for 3 days to France. Cover starts on 11 January and ends on 14 January 2025. Annual policies starting from £10.88 based on an individual aged 29 with no pre-existing medical conditions taking annual cover for Europe starting from 1 May 2025.