Insurance - Backpacker or Annual?

I have noticed whilst looking through some travel insurance websites that they all offer two types of Insurances that catch the eye of the backpacker.

To start, I will not be visiting the America's or Canada in my gap year.

In both types of insurances you can normally choose Worldwide (Exc. USA + Canada).
Annual insurance actually works out quite a bit cheaper than the backpacker insurance.

Also, with Insure + Go, if you choose Annual Multi Trip, you have to include USA, but even then their top package is only £87 for the full years cover!!

Has anyone come across the same thing?

Is there any difference? Like only being able to visit one country in the whole year for the annual insurance??

Please let me know what you think, from past experience or whatever.

Thanks.

[ Edit: Edited on 06-Jul-2010, at 07:25 by N1U9F8C7 ]

Annual multi-trip insurance covers exactly that - multiple trips starting from your country of residence (ie the UK) over the course of one year. So for example, you can go to Czech Republic and then back to the UK, a month later you can go to Spain and back to the UK, the 3 months later you go to Turkey and back to the UK. It's for people who take multiple holidays in one year. There is usually a stipulation that each trip can't be longer than a month. It's just so you don't need to take our individual policies for each trip if you know you will be going on holiday a lot.

Backpacker travel insurance is different as it usually means you leave the UK on a specified date and that travel insurance covers you for going between countries and not returning to the UK until the end of the policy. You usually have to tell the insurance company which countries you are going to and part of the terms and conditions are that you begin and end your trip in the UK. If you put in a claim on the insurance you will have to provide copies of your tickets and itineraries to show that you began and ended in the UK.