After you've bought single trip holiday insurance once too often, it can be tempting to turn to annual travel insurance instead. The benefits seem numerous – less cost, less hassle, and many optional extras – yet committing to an annual travel insurance policy isn't to be done lightly. You need to make sure it is the right policy for you, and that you can get it at a price that saves you money. These are a few of the questions that you should ask yourself before buying annual travel insurance…

Do You Need It?

Travel insurers are always trying to persuade people to shell out for annual travel insurance, and with good reason – it's usually the best deal. But it isn't for everyone. Be honest with yourself – it may not be possible to predict exactly how many holidays you are going to go on, but try and have a rough estimate in mind. Figure out approximately how much it will cost you to get single trip insurance for each of these holidays, and then do the math. If you are likely to make big savings on annual travel insurance, then it makes sense to buy it. If you are only going to manage one or two short holidays in the year, it might be worth buying insurance for each individual trip.

Of course, it is also worth remembering that annual travel insurance will cover you for numerous trips you might not bother getting insured for usually (weekend breaks and so on), and can offer you the peace of mind of constant year round cover. You may well consider it worth paying a little more for this privilege.

What Are the Extras On Offer?

…and are they actually of use? It's easy to be seduced by all the free extras that are packaged with many annual travel insurance policies, but it is important to be realistic – free golf insurance isn't any good to you if you've never set foot on a golf course! Look out for genuinely useful deals – free winter sports cover if you are a keen skier, free child cover if you often travel with your family, and so on. If a slightly more expensive travel insurance policy offers extras that are going to save you money in the long run, that may be the one to go for.

Have You Read the Small Print?

It goes without saying that shopping around is the best way to go with annual travel insurance, and comparing the best deals via online comparison sites is a great way to get an idea of what policies are out there. But before you choose the one with the lowest price, take a very careful look at its terms and conditions.

Different travel insurance policies will have different levels of cover. Look very carefully at the terms and conditions of key policy areas. Under what circumstances will the policy refund you if you cancel a holiday? What level of cover is offered for your money and personal possessions? How high is the level of medical cover? What sports and activities does it cover? How about legal fees?

If the price is right and the cover is good, it is well worth buying annual travel insurance – but make sure you get the deal that is right for you.