[Buying Travel Insurance] Should You Get an Annual or Single Trip Plan? | Unveiling Coverage Pitfalls | Why Buy an Annual Plan for a Single Trip?

For the same travel insurance plan, whether it’s annual or single-trip, the coverage is generally the same. The main difference lies in the coverage period, as detailed in the table below:

If you don’t travel often, and only take short trips occasionally, single-trip travel insurance is more suitable. It’s less expensive, and you can select a plan based on your budget, the number of family members, itinerary, and activities.

### Who Should Buy Annual Travel Insurance?

Annual travel insurance is ideal for frequent travelers. By purchasing it once, you are covered for all your trips throughout the year. Additionally, if you plan to go on an extended trip, such as one lasting a month or longer, we recommend annual travel insurance, as the premiums for both options are similar. Should you decide to travel again during the insured year, you won’t need to buy additional coverage.

Kwiksure offers a variety of travel insurance plans, providing comprehensive coverage for medical expenses, accidents, trip cancellations, and loss of personal belongings, allowing you to travel with peace of mind.

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The adequacy of travel insurance coverage isn’t solely determined by the premium. Different insurance companies offer varying levels of coverage, but most basic travel insurance plans typically include four main categories: "Trip Coverage," "Medical Coverage," "Personal Accident Coverage," and "Other Coverage" (Note: these categories may have different names depending on the insurance provider).

Trip Coverage

This includes losses related to your trip, such as lost or damaged luggage and personal belongings. For example, flight delays are common. It’s important to note that compensation is usually calculated based on the number of hours of delay, and it must meet the minimum delay period specified in the policy (e.g., HK$300 compensation for every 6 hours of delay). Some travel insurance plans even cover transportation costs to and from the hotel if your flight is canceled. If this happens, remember to keep all relevant receipts and documents as proof.

Medical Coverage

Medical coverage refers to expenses incurred due to medical needs, such as hospitalization and medical fees. A common blind spot when purchasing insurance is the daily hospitalization limit. For example, a policy might have a daily limit of HK$500, with a total limit of HK$5,000, meaning it covers a maximum of 10 days of hospitalization. If another policy has a daily limit of HK$1,000 with the same total limit of HK$5,000, it only covers up to 5 days of hospitalization.

Additionally, medical coverage in travel insurance usually includes benefits like repatriation of remains, emergency travel arrangements, and child escort services. It’s important to check whether these benefits are fully covered or have a limit.

Personal Accident Coverage

This involves coverage for personal accidents, such as injuries, disabilities, or even death caused by accidents while using public transportation. Special attention should be paid to whether activities like self-driving tours or high-risk activities such as skydiving, diving, or skiing are covered.

Other Coverage

Some travel insurance plans offer special coverage, such as personal liability coverage, compensation for lost frequent flyer miles due to trip cancellation, free coverage for children under the same policy, and even compensation for canceled overseas wedding photoshoots, weddings, or sports events. Policyholders can choose coverage based on their personal needs.

As an example, let’s look at Allianz Travel Insurance (Silver Plan):

From the above travel insurance example, although the coverage includes the four main categories, it doesn’t cover mobile phones. Additionally, if your trip includes self-driving tours or participation in high-risk activities such as skydiving, these are also not covered under this travel insurance. Therefore, you should carefully read the policy before purchasing to ensure that it meets all your travel needs.

Kwiksure offers various travel insurance plans that provide comprehensive coverage for medical expenses, accidents, trip cancellations, and loss of personal belongings, allowing you to travel with peace of mind.

Many people habitually purchase travel insurance just before boarding, focusing only on the premium. However, the Consumer Council compared 26 single-trip travel insurance plans and found that medical coverage amounts ranged from HK$100,000 to HK$1,200,000, a significant disparity.

In terms of premiums, the Consumer Council noted that for the same destination and travel duration, individual premiums ranged from HK$79 to HK$263, a twofold difference. For a family of four, premiums ranged from HK$157 to HK$1,052, a sixfold difference. It’s advised that consumers understand whether the plan meets their needs and itinerary before purchasing, and carefully review the policy terms and coverage.

Like other types of insurance, travel insurance has age restrictions. Some policies specify the insured age. Additionally, the maximum insured age for annual travel insurance is lower than that for single-trip travel insurance. Generally, the maximum insured age for annual travel insurance ranges from 69 to 80 years, while for single-trip travel insurance, it is 85 years. Although some insurance companies do not impose age restrictions, the coverage amount is typically reduced to 50%.

Source: Consumer Council