Travel insurance - annual or single trip?

[OriginalFDM]

We quite often book holidays quite a while in advance - sometimes over 12 months in advance meaning that at the time we book, an annual policy won’t extend to our start date.

This is going to sound like a daft question, but for something like cancellation, does your policy need to extend to the date of the holiday or just the date of the period you want to insure the risk in?

For example if I book a trip for August 21 and take out an annual policy today, if I had to cancel the trip because of an event that happens in September 20, would I be covered?

The thing I’m claiming for and paying to insure against (cancellation) has happened within the term of my policy so I had assumed yes, but with the date of travel being beyond the date of the policy I’m not so sure.

I’m wondering if it’s best to have a basic annual policy for short trips and take out a specific single trip policy for bigger holidays?

Any thoughts welcome!

[//j17]

If you take multiple trips then an annual policy is usually the way to go. It will generally be cheaper than multiple single trip policies and, assuming you renew/replace your annual policy each year you'll have cover for those advanced booked trips.

[OriginalFDM]

//j17 said:

If you take multiple trips then an annual policy is usually the way to go. It will generally be cheaper than multiple single trip policies and, assuming you renew/replace your annual policy each year you'll have cover for those advanced booked trips.

Will I though? My policy expires in May 20, so if I renew I’ll be covered til May 21 - would that cover me for cancelling a trip in Sep 21 if the cancellation occurs during the term of the policy?

Because in that situation at the time of the claim I have no insurance that extends to the date of the trip if you see what I mean

[Mr Pointy]

OriginalFDM said:

Will I though? My policy expires in May 20, so if I renew I’ll be covered til May 21 - would that cover me for cancelling a trip in Sep 21 if the cancellation occurs during the term of the policy?

Because in that situation at the time of the claim I have no insurance that extends to the date of the trip if you see what I mean

For this sort of question the only way to get a meaningful answer is to call the insurance company & ask them. If they accept the potential liability then you need that confirmed in writing so there's no room for doubt.

[GT72]

That's a really interesting question OP and not something I'd considered. We take out an annual policy each year.

If you do get the answer, please can you update this thread.

[OriginalFDM]

GT72 said:

That's a really interesting question OP and not something I'd considered. We take out an annual policy each year.

If you do get the answer, please can you update this thread.

It’s a strange one isn’t it. You’re paying to insure a risk for a term so in my head it’s irrelevant that the holiday is after the term.

What I’m paying to insure against, and what has happened (fictionally!) is within the term of my policy. But I somehow feel the insurer might disagree!

I’ll phone the insurer and ask out of interest!

[mike_e]

I don't think you'd be covered on the grounds that the policy ends months before the holiday begins and the reason for being unable to travel could correct itself after the cover period expires. Most insurers will only consider a claim for being unable to travel immediately prior to the actual start date of the holiday. You could try taking an annual policy but delay the start date by a few months, that may work for you.

On another note, I heard this morning that one large insurer isn't accepting any new travel policies as a result of the Covid-19 epidemic. Others may well follow suit and the FCO is changing it's travel advice in light of the same, which could render any travel insurance invalid if your destination is on their list of places to avoid. Difficult time for the industry so my advice would be to grab an annual policy while you still can and pay particular attention to their wording on FCO travel advice.

[Sheepshanks]

OriginalFDM said:

My policy expires in May 20, so if I renew I’ll be covered til May 21 - would that cover me for cancelling a trip in Sep 21 if the cancellation occurs during the term of the policy?

Yes, because it's a renewal - it's the same policy extended for another year.

[TwigtheWonderkid]

On annual insurance, you're covering the cancellation risk for anything that makes you cancel during the period of insurance, provided it's an insured peril. So a policy taken out 1/1/20 expiring 31/12/20 will cover the losses on a holiday booked for Feb 21 if you get cancer now and are told that your treatment will be ongoing and you won't be able to travel in Feb 21. even if you don't renew on 1/1/21.(which you won't do, because you have cancer treatment ongoing, and aren't travelling anywhere.)

On a single trip insurance, although you only cover the date of the holiday, say 14 days from 4/9/20, the cancellation part of the cover starts on the day you buy the policy. That's why people who buy travel insurance just before they go are idiots, you should buy as soon as you book and pay your deposit. As many are now finding out during this coronavirus issue......."well of course I haven't got travel insurance, I'm not due to go until next month!!"