Is an Annual Travel Insurance Policy Worth It?
An annual policy is recommended for:
Leisure or business travelers taking multiple short trips over the course of one year
Frequent international travelers who need medical coverage while overseas
Travelers who don’t need high Trip Cancellation or Trip Interruption coverage
An annual policy is not recommended for:
Travelers who will only be traveling once or twice over the course of a year
Travelers taking extended trips, lasting longer than 90 days
Travelers with existing travel insurance coverage through a credit card
Annual policies are designed to provide long-term travel insurance benefits for travelers taking two or more trips throughout a 12-month time period. Rather than purchasing individual policies for each trip, travelers can purchase an annual plan and be covered for all trips taken within a year.
To get started, travelers should enter their intended coverage start date, their maximum trip length, their state of residence, and a few other key details. Keep in mind, most annual policies cover trips up to 30 days, while some more lenient policies will allow up to a 90-day trip length.
In general, these plans are ideal for frequent travelers looking for medical coverage while abroad. Some policies will also include coverage for trip delays and cancellations, as well as add additional policy upgrades such as pre-existing condition coverage.
Travelers who need to insure a high trip cost, have specific cancellation needs, or need medical benefits for an extended trip should not purchase an annual travel insurance policy. Travelers who do not meet the recommendations for an annual policy should consider a single trip policy. Single trip travel insurance policies can cover longer trips and provide travelers with comprehensive coverage that includes cancellation, medical, delay, and other important benefits.
Likewise, annual policies are not recommended for travelers taking a cruise, participating in adventure and hazardous sports, or traveling with a large group, as these situations are better covered by other travel insurance policy types.
How Does Annual Travel Insurance Work?
Annual policies are designed to provide you with long-term travel insurance coverage, and peace of mind, for any number of trips you take within a 12-month period. Many frequent fliers opt for this coverage because it is a cost-effective alternative to purchasing a single-trip policy each time they travel.
Annual plans are reimbursement based. If one of your trips is disrupted by an unforeseen event that's covered by your plan, you may file a claim with your travel insurance provider to recover any financial loss you suffered as a result.
Almost all multi-trip plans will include international medical coverage, delay coverage, and luggage protection. In the event one of your covered trips is disrupted, you may file a claim with your travel insurance provider for reimbursement for the travel expenses you incurred.
The cost of an Annual plan is determined by multiple factors, including your age, the length of your trips, and the amount of coverage included in the policy. According to Squaremouth data, the average Annual travel insurance policy is roughly $350.
When comparing prices on multi-trip insurance, we recommend getting quotes from 3-4 travel insurance providers. This gives you the best chance of getting a policy that fits your budget and travel needs.
There are many reputable travel insurance providers on the market today that offer multi-trip insurance plans. The best plan for one traveler may not fit the needs of another. On Squaremouth, you can use filters to narrow down your search, and sort results based on what's most important to you. If you need additional assistance, our award-winning customer service team is just a phone call away.
Very few Annual plans include Trip Cancellation or Trip Interruption coverage. If you want to protect your trip investments with cancellation coverage, we recommend considering single-trip plans that include those benefits. Many travel credit cards now offer cancellation benefits as a perk to cardholders, which may be worth looking into, too.
In general, most Annual travel insurance plans will cover cruises. Annual coverage is a great way to protect your cruise, as the plans typically include protection against common travel disruptions, such as unforeseen medical emergencies, delays, missed connections, and baggage loss.