Travel insurance tips: Is an annual insurance policy worth the money?

With no pre-existing medical conditions and aged 65 or under, you can expect to pay about $400 for an annual travel insurance policy with no extras.

That's about three times what the same traveller might pay for a policy with the same level of cover for a two-week trip to Indonesia or New Zealand.

Therefore you might think that any less than three overseas trips per year and annual cover makes no sense, but it's not that simple.

One of the best reasons to buy an annual policy is peace of mind, wherever your travels take you.

If you're making a trip to visit friends in another city or taking a long weekend wine country escape, you wouldn't buy travel insurance for that alone, yet an annual travel insurance policy could cover you for trip cancellation, vehicle excess on a hire car and loss or damage to your possessions.

Not every traveller buys travel insurance if they're cruising in Australian waters, but they should – and again, an annual policy means you're covered.