Is an annual travel insurance policy right for you?

annual travel insurance

If you’re thinking of buying a travel insurance policy for your summer vacation, here’s a thought: Why not get one for the whole year?

If you take more than two trips in 2018, you could save money by choosing an annual travel insurance policy instead of insuring each trip separately, experts say. But most annual coverage comes with significant restrictions and limitations, and it can be difficult to find. Before you buy, you have to run a few numbers and read the fine print.

Insuring an around-the-world trip

Consider what happened to Gary Arndt when he embarked on an open-ended trip around the world more than a decade ago.

First, he priced a regular policy. It would have cost somewhere between $114 and $204 per segment, depending on the length and type of coverage. An annual travel insurance policy, by comparison, cost $459.

“Assuming I had a series of one- to two-week policies that I had instead of an annual travel insurance policy, I would have had to pay anywhere between $2,000 to $5,000 per year for the same coverage,” he says.

Arndt, a professional photographer who publishes the blog Everything-Everywhere.com, went with the annual travel insurance policy. And although he doesn’t travel full-time anymore, he has kept his coverage.

“Overall, an annual policy is a fantastic deal for anyone who does multiple international trips per year,” he says.

Should you buy an annual travel insurance policy?

Maybe.

Annual policies differ from typical travel insurance purchased on a per-trip basis in at least one important way. They tend to focus on medical coverage, as opposed to cancellation benefits. That’s because it’s difficult for insurance underwriters to know how much you’ll spend on your trips. So they are trying to limit their exposure, according to Damian Tysdal, who publishes the site Travelinsurancereview.net.

“An annual plan might be right for you if you are taking multiple trips throughout the year, especially abroad where you will need medical coverage, but cancellation is not your primary concern,” he says.

For example, the basic version of Arndt’s annual travel insurance policy doesn’t have any cancellation benefits. Rather, it offers emergency medical transportation, auto rental collision damage waiver and accident coverage. Several travel insurance companies, including Allianz Travel Insurance, HTH Worldwide, International Medical Group, RoamRight, Seven Corners and Travel Guard, offer annual policies. You can pay extra for additional cancellation coverage.

Another limit: trip length

“Buried in the fine print, it states that a single trip during the calendar year is limited to maximum 45 days duration,” says Jeffrey McElwee, who works for a tour operator in Nampa, Idaho. “So, you might think you have a year’s worth of coverage but need to coordinate trips to fit the fine print details. Even if you get sick within the 45-day limit, if your planned itinerary was longer than the 45 days, they will still refuse payment.”

You might also run into a problem if you have an appetite for adventure.

“If you’re taking business trips, visiting grandma and taking the occasional family trip, cruise or all-inclusive stay, you may be OK,” says Margie Jordan, who works for a travel agency in Jacksonville. “But if you like to add in a little adventure, like ziplining, scuba diving, hiking, white water rafting or just like to travel deeper, you might want to explore what your annual travel insurance policy covers — and more importantly, what it doesn’t.”

Regular travel insurance has those restrictions, too, plus limits on coverage for pre-existing medical conditions. Sometimes you have to get extra insurance to address those gaps. That’s a strategy Carl Lehman, a retired audit manager for the Canadian government, uses. He purchases an annual travel insurance policy but then adds extra policies as needed.

“I have an annual travel insurance policy for unlimited trips under 40 days each,” explains Lehman. “I can purchase additional coverage for any extended trip.”

Spending 365 days a year on the road

As a travel writer, I spend 365 days a year on the road and have no permanent residence. So an annual travel insurance policy was a clear choice. I went with one that offers a modest $5,000 in trip cancellation and trip interruption benefits. It also provides my family with $50,000 in emergency medical and dental coverage and $250,000 in emergency medical transportation.

Some of my travel purchases are also covered through my Visa card. My primary health insurance covers us for health care domestically.

Even with all of the restrictions, the travel professionals I spoke with were unanimous that an annual travel insurance policy is worth a look. “I wouldn’t leave home without it,” says Michelle Weller, a travel agent with Travel Leaders in Houston.

Neither would I.

How to shop for travel insurance

Take a quick inventory of your upcoming trips. The cost of a single insurance package, in most cases, is less than half the cost of an annual package, according to Stan Sandberg, co-founder of TravelInsurance.com, a travel insurance comparison website. That makes single-trip insurance the logical choice for anyone who plans to take two vacations or less per year.

Compare, compare, compare. In addition to TravelInsurance.com, you can easily compare policies on sites such as InsureMyTrip.com, Quotewright.com, Squaremouth.com, TripInsurance.com and TripInsuranceZone.com. Because annual policies are such a niche product, you sometimes have to search a while to find an annual policy. This list on Travelinsurancereview.com may be helpful.

Check to see if you’re already covered. That’s the advice of Joel Ohman, a financial planner who founded the site InsuranceProviders.com. “You could potentially end up buying a policy that has some duplication of benefits with what you already have,” he says.

Underwritten by

Underwritten by AirHelp

AirHelp is the world’s leading flight delays compensation company, helping passengers apply for compensation following a delayed or canceled flight or when boarding has been denied. It is AirHelp’s mission to fight for passenger rights by holding airlines accountable for flights disruptions that are out of passengers’ control. AirHelp has already helped 5 million people, taking the stress out of applying for compensation and making it as hassle-free as possible for travelers around the world.

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The Allianz Travel Insurance company has built its reputation on partnering with agents all around the world to provide comprehensive travel insurance for their clients. Contact Allianz Travel Insurance for a comprehensive list of coverage.

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Fareportal’s portfolio of brands, which include  CheapOair and  OneTravel, are dedicated to helping customers enjoy their trip. Whether you want to call, click, or use one of our travel apps, one thing is clear: We make it easy to take it easy.

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An independent provider of low cost CDW/LDW insurance for use with rental cars. Up to $100,000 cover with no deductible. Policies available on a per day, per trip or per year basis. Also works with overseas rentals. Try  Insuremyrentalcar.comnow.

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It’s simple. InsureMyTrip finds you the right travel insurance plan, every time. InsureMyTrip is the authority on travel insurance. Rated A+ for travel insurance by the Better Business Bureau. All travelers that purchase a policy through  InsureMyTrip have access to Anytime Advocates® for claims assistance.

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The leading global network for luxury and experiential travel. This invitation-only organization comprises over 1,000 travel agency locations with 17,500 advisors in over 45 countries, and holds preferred relationships with 1,700 of the world’s finest travel companies. Virtuoso advisors collaborate with their clients to create personalized itineraries featuring exclusive perks, while also providing advice, access, advocacy, and accountability. For more information, visit  Virtuoso.com.

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As a company that is constantly striving to simplify travel insurance, VisitorsCoverage, is on a mission to help travelers make the better decisions about purchasing travel insurance, quickly. VisitorsCoverage has helped millions of travelers globally to buy the suitable travel insurance and explore the world with confidence. Get insurance for your next trip at  VisitorsCoverage. Lowest Price Guaranteed.

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The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth.

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