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If you want to take out travel insurance before your vacation, you are faced with the question of whether insurance is better for the trip in question or whether an annual policy is worth it.
Travel insurance can be a lifeline in many cases, for example if your vacation suddenly falls through or if an accident occurs during the trip. But is it worth taking out an annual policy, or is insurance per trip enough? The answer is not that simple because it always depends on individual needs and travel habits. We explain the insurance differences as well as the advantages and disadvantages of both options.
Differences between per-trip travel insurance and an annual policy
Per-trip travel insurance provides coverage for a single trip, while an annual policy covers many trips within a year. With an individual policy, those wishing to travel pay a one-off premium that is tailored specifically to the trip in question. This option is particularly suitable for occasional travelers who only travel once or twice a year. With an annual policy, however, a higher annual premium is due – but this usually covers an unlimited number of trips. This option is convenient for frequent travelers who travel several times a year.
If you want to be completely protected, you should take out complete travel insurance right from the start, which American Express, for example, offers together with its insurance partner AXA. The whole thing costs around 130 euros per year as an annual policy without a deductible for worldwide protection for travel costs of up to 1,500 euros. Included are, among other things:
- International health insurance
- Trip interruption and cancellation insurance
- Travel accident insurance
- Baggage insurance
- Private liability and legal costs insurance abroad
Consumer protection and Stiftung Warentest strongly advise travelers to take out health insurance abroad, but complete protection is often not necessary as this can quickly result in over-insurance. American Express also offers international health insurance along with AXA as an annual policy. Annual insurance is available from around 22 euros.
Advantages and disadvantages of travel insurance per trip
Single travel insurance offers a few advantages. First of all, it can be designed more flexibly: the policy can be adapted to the needs of the traveler and the risks of the respective trip. This means you only pay for what you really need. This is particularly interesting for occasional travelers. In addition, the insurance is limited in time – which means costs can be better controlled. But there are also some disadvantages:
- More complex: Insurance must be taken out again for each trip.
- In some cases, the costs of the individual policy are only slightly cheaper than the annual policy – and can even be higher for two trips.
- The benefits are often somewhat more limited and the coverage amounts are lower.
Insurers like Europ Assistance advise: If you are only planning a trip of a maximum of 31 days a year, one-time protection is sufficient. According to the provider, if you travel more often a year, it is better to take out an annual policy. With Europ Assistance, for example, annual international health insurance is available from 31 euros. When calculating for a person between 25 and 39 years old, it shows that one-time protection is only a little cheaper at 28 euros.
Advantages and disadvantages of the annual policy
The annual policy is the simple alternative for anyone who travels often and doesn’t want to constantly take out new insurance. This means you only take out insurance once a year and no longer have to worry about it before your next trip. The bonus covers several trips in one year. This saves time and often even money. One disadvantage, however, is that the annual policy is somewhat less flexible. For example, uniform benefit packages can also contain unnecessary benefits that could possibly be avoided with a tailor-made individual policy. In addition, the insurance also costs if you don’t travel at all for months.
- Easier to use: just one policy for all trips.
- Especially for frequent travelers, an annual policy is often cheaper than taking out many individual contracts.
- But annual policies are sometimes less flexible and benefits can rarely be individually adjusted.
With Ergo, an annual policy for foreign health insurance is possible from just 9.90 euros.
Which travel insurance suits which type of trip?
Which type of travel insurance travelers choose ultimately depends on their personal travel behavior. Occasional travelers who travel no more than once or twice a year will probably find individual insurance the best solution. Frequent travelers, on the other hand, are more likely to benefit from an annual policy, which not only saves time and stress, but is often also cheaper. It’s worth taking a closer look at your own travel habits and comparing different providers and prices – and only then make a well-thought-out choice and start your well-deserved vacation without any worries.
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Source: Stern