But, unlike other types of annual insurance, such as motor or home, an AMT does not provide cover for 365 days. Instead, it is insurance for a number of single trips in an annual wrapper and is effectively dormant between trips or booked trips.

The period of a trip is limited to a total number of days, typically 31 for any one trip, with an unlimited number of trips. If you will be away for more than the time allowed under an AMT you should take out a long stay policy.

Another matter to consider is the start date. Unlike a single trip travel insurance where the cancellation cover starts on the purchase date, an AMT should commence on the date you book your trip, not the date of travel, in order to cover you for cancellation.