Date to Take Annual Multi-Year Insurance out

[FredF]

My current Annual Multi-Trip Insurance is about to expire, should I wait until I am about to go away next before renewing? Say I am going Away on 1 February, should I hold off renewing until late January (so the 12 months stretches a bit further) I would appreciate your views.
Thanks

 

[drron]

Definitely wait. We use SCTI and we can nominate the start date so always begin it on the day we leave. As well they do have the option of 60 day trips which we get close to on many trips.

 

[FredF]

Definitely wait. We use SCTI and we can nominate the start date so always begin it on the day we leave. As well they do have the option of 60 day trips which we get close to on many trips.

Thanks. I had a look at SCTI (because you mentioned it) and it appears they now have 90 trip cover! And the price seemed very competetive.
I will definitely look into that further

 

[RB]

Definitely wait. We use SCTI and we can nominate the start date so always begin it on the day we leave. As well they do have the option of 60 day trips which we get close to on many trips.

I guess the risk of that strategy is that you might miss cancellation cover if something happens between paying for part of the trip & when you start the insurance? I don't think it is a black & white situation.

 

[SYD]

I guess the risk of that strategy is that you might miss cancellation cover if something happens between paying for part of the trip & when you start the insurance? I don't think it is a black & white situation.

Some policies cover you from payment (take out the policy) and actual "start" date (that's usually the day of first flight etc) - which could be months away.

It certainly pays to read the fine print!

 

[Cynicor]

Normally the date of insirance 12 months from first flight, but you are covered for events happening prior. So buy now, if your purchase has a “travel date” or “first flight” date type field.

 

[SYD]

Normally the date of insirance 12 months from first flight, but you are covered for events happening prior. So buy now, if your purchase has a “travel date” or “first flight” date type field.

or purchase the insurance once you’ve booked a big ticket / non-refundable item.

 

[Mumanddad]

Thanks. I had a look at SCTI (because you mentioned it) and it appears they now have 90 trip cover! And the price seemed very competetive.
I will definitely look into that further

I've spent the morning doing insurance quotes. With SCTI having the 90 day cover now, so far they are the favoured option for our trips next year. Unlimited cancellation & medical, $250 excess, cruise and motorbike cover. Their annual multi-trip policy is cheaper for us than a single trip policy.

Just have to have another read of their PDS later today and if OK we'll jump onboard with them.

 

[VPS]

I'm sure my last multi trip lasted 12 months from the date of my departure even though I purchased it weeks beforehand - I must check next time

 

[Brissy1]

Some policies cover you from payment (take out the policy) and actual "start" date (that's usually the day of first flight etc) - which could be months away.

It certainly pays to read the fine print!

I presume that's normal. In fact priced in... eg taking out today a single 7 day trip cover for a trip next month will be less than taking out today the same cover for a trip in 6 months time. In my experience.

 

[SYD]

I presume that's normal. In fact priced in... eg taking out today a single 7 day trip cover for a trip next month will be less than taking out today the same cover for a trip in 6 months time. In my experience.

I haven’t checked recently but when I was int rh habit of rolling over an anual policy, it was pretty similar pricing from a couple weeks out thru to starting a new one months out.

Single trips would be calculated differently (and I’m no expert) but how they rate the cancellation risk over a longer period v short notice .

But medical is always the biggest risk for the insurer, so maybe the calculation factors in the higher risk of something undiagnosed popping up over a longer period v short notice?

And this is why actuaries get paid a lot of money!

 

[sanne]

I've spent the morning doing insurance quotes. With SCTI having the 90 day cover now, so far they are the favoured option for our trips next year. Unlimited cancellation & medical, $250 excess, cruise and motorbike cover. Their annual multi-trip policy is cheaper for us than a single trip policy.

Just have to have another read of their PDS later today and if OK we'll jump onboard with them.

I checked out their T&C for an annual policy some years ago. I was a bit unsure of their cover if a new medical condition appeared during the cover. They were OK for our pre existing medical conditions that we told them about. If you find out any info on the coverage for any unexpected medical issues please could you post here. Thanks.

They were certainly very competitively priced but did have a look back period of 3 years which seemed more than other policies.

 

[SYD]

I checked out their T&C for an annual policy some years ago. I was a bit unsure of their cover if a new medical condition appeared during the cover. They were OK for our pre existing medical conditions that we told them about. If you find out any info on the coverage for any unexpected medical issues please could you post here. Thanks.

There will be a “Duty of disclosure” in the policy if something adverse arises between taking out the policy and travel commencing. How that’s handled would be a function of the underwriter - one would presume?

Obviously something that arises once away ought to be covered - otherwise it would be a junk policy.

 

[quick_dry]

Just have to have another read of their PDS later today and if OK we'll jump onboard with them.

I've used SCTI and had a good experience with paying out a claim quickly (items broken in luggage), the only thing with them is that IIRC they note that depreciation applies, but don't publish their depreciation tables. (the amount applied seemed reasonable, but it was annoying not to have it there set out up front in the PDS)

 

[RooFlyer]

I'm sure my last multi trip lasted 12 months from the date of my departure even though I purchased it weeks beforehand - I must check next time

Yes, that what mine does; I bought mine months ahead. @FredF , I'd recommend you take out a policy the day you pay anything for your trip that's not refundable. Then you are covered for cancellation at least if something happens shortly (God forbid) and you need to cancel anything non-refundable.

I was a bit unsure of their cover if a new medical condition appeared during the cover. They were OK for our pre existing medical conditions that we told them about. If you find out any info on the coverage for any unexpected medical issues please could you post here. Thanks.

In my experience, 'pre existing medical condition' includes anything you have asked a GP about (ie early stages of something), being prescribed for, are observing etc. Which is why I recommend taking out a policy early. Because once you ask a GP about a condition or some documentation about it, it becomes a pre-existing medical condition.

 

[sanne]

RooFlyer… yes I understand about pre existing having had to give the insurer all my previous 2 years of medical notes from my doctor when claiming for sudden illness that prevented me from travelling. They were very thorough in trying to find anything that they could connect to my illness.

It’s the new illness that is not a pre existing that presents itself during your annual insurance cover that concerns me with Southern Cross TI. It says it MAY insure, not it WILL insure. Plus it has a look back period of 3 years.

 

[RooFlyer]

It’s the new illness that is not a pre existing that presents itself during your annual insurance cover that concerns me with Southern Cross TI. It says it MAY insure, not it WILL insure. Plus it has a look back period of 3 years.

I see. Personally, I wouldn’t go there.

 

[Brissy1]

Yes, that what mine does; I bought mine months ahead. @FredF , I'd recommend you take out a policy the day you pay anything for your trip that's not refundable. Then you are covered for cancellation at least if something happens shortly (God forbid) and you need to cancel anything non-refundable.

Are you saying that you bought an annual policy 9 months ahead of your next travel date, and was covered for 9+12 months? Seems generous.

 

[RooFlyer]

Are you saying that you bought an annual policy 9 months ahead of your next travel date, and was covered for 9+12 months? Seems generous.

I bought it in September (when my previous policy expired), with my initial international trip beginning in December. The only' cover' you get between taking out policy and date of first travel is cancellation, which of course is one of the main functions of travel insurance.

As to generosity. My TA did a pricing exercise for me last year. The longer you take out the policy before first travel, the more expensive it is - obviously because the 'chance' of cancellation is higher with a long lead-up period. For that exercise, they priced taking out a policy 6 months prior Vs 1 month prior. I found that in the grand scheme of things, and the cost of things (in my case a cruise with by then minimal refund entitlement), it was worth it, taking out three months prior.

 

[sanne]

RooFlyer that has been my experience too. Same with single trip insurance. I take out our insurance as soon as our cruise booking is going into some sort of non refundable ..usually 4/5 months before embarkation.

As for flights which typically I book 10/12 months out, if I can’t get award flights I look at cancellation costs if I had to cancel and weigh that up with the extra cost of buying insurance that far ahead.

If possible I always book refundable hotel rooms at about the same time as booking air and keep checking pricing until I have insurance, then if price is good for a non refundable price, I book it in.