Should I buy single-trip or annual travel insurance?

A single-trip policy covers one journey between set dates, to the destination you choose. It ends when you get home. An annual multi-trip policy runs for 12 months and covers any number of trips in that time, as long as each one meets the policy's conditions.

Both types usually include the same core cover — emergency medical expenses, repatriation, cancellation, lost or delayed baggage and personal liability. The difference is in how many trips are covered and the limits that apply to each one.

Annual policies cover multiple trips, but each trip must fit within the policy's rules:

• Maximum trip length: each trip can only last a certain number of days. This varies by policy, and some insurers let you pay to extend it. A trip that goes over the limit may not be covered at all, not just for the extra days.
• Geographic area: you choose an area, such as Europe or worldwide, and worldwide cover often comes in two versions — with or without the USA, Canada and the Caribbean.
• UK trips: some annual policies only cover holidays within the UK if you've booked accommodation or are staying for a minimum number of nights.
• Winter sports: these are often excluded or limited to a number of days a year unless you add cover.
• Age limits: some insurers set an upper age limit for annual policies, so older travellers may find fewer options.

A single-trip policy may suit you if you only go abroad once a year, or are planning one long trip that's longer than an annual policy allows. It can also make sense for a one-off trip to a destination outside your usual area, such as a long-haul holiday to the USA when you normally stay in Europe.

For long trips such as gap years or extended travel, specialist backpacker or long-stay policies are designed to cover journeys of several months.

An annual policy may suit you if you take several trips a year, including short city breaks or business trips. As well as potentially costing less than buying a policy for each trip, it means you're covered without having to remember to buy insurance every time you travel.

To compare fairly, add up what you'd expect to pay for single-trip policies across your planned trips and set that against an annual quote with the right area and trip length. Remember to check the cancellation limit, which applies per trip and should cover the cost of your most expensive booking.

Cancellation cover protects you if you have to cancel for a covered reason, such as illness. With a single-trip policy, it's usually best to buy it as soon as you book, so you're covered for any problems before you go. With an annual policy, cancellation cover generally applies from the policy's start date, so check how it treats trips you booked before then.

Whichever type you choose, you'll need to declare any pre-existing medical conditions when you buy. With an annual policy, you'll usually also need to tell the insurer if your health changes during the year, such as a new diagnosis or prescription. Failing to declare a condition can lead to a claim being refused.