Annual travel insurance is a travel insurance plan you keep all year long. There are many reasons to consider buying annual travel insurance in the new year, but some of the most important include:
If you’re the kind of traveler who knows you’ll be traveling in advance, then purchasing annual travel protection can save you a lot of money and time over covering individual trips with separate plans.
If you’re a frequent traveler – perhaps for business or for academic reasons – having an annual travel insurance plan means you’ll have the coverage you need for travel medical mishaps, emergency evacuations, and travel delays to name a few.
The following will help you determine whether you could save money with an annual travel insurance plan.
Travelers buy travel insurance – individual plans and annual coverage – for many different reasons, but it essentially boils down to protect themselves from big financial losses. That is, after all, the reason we all buy insurance to cover our cars, our homes, our valuables, etc.
What makes annual travel insurance cost-effective depends on factors that are unique to your reasons for traveling and your needs. Here are some examples:
In each of these situations, an annual travel insurance plan is ideal for the traveler described.
When you’re thinking about the trips you plan to take in the new year, you may have leisure trips and business trips on your mind. Both types of trips can be covered by annual travel insurance, but with different coverage.
In most cases, we recommend separating these trips for this reason: business trip expenses don’t (usually) come out of your own pocket and leisure trip expenses do – hence the need for trip cancellation coverage with your leisure trips.
Essentially, leisure travel usually involves spending your own money – money you may wish to recover if you have to cancel. Even if you’re using accumulated points to cover your airline tickets, it’s likely you will want to recover those points if you have to cancel your trip unexpectedly. After all, you can use them later for another trip.
The key difference between getting a travel insurance plan for each trip versus having a single annual plan is that annual plans have little to no trip cancellation coverage. Similar to the cancellation and interruption you have with your credit card travel protection plan, an annual travel insurance plan has limited trip cancellation and interruption coverage.
If you’ve saved to pay for a trip and you can’t afford to lose that money, then buy a travel insurance plan to cover that trip – even if you have an annual plan to cover all your business trips, for example.
The following benefits are typically included in annual travel insurance plans:
Annual travel insurance plans are also great for a few extra benefits – one of which brings great peace of mind to parents traveling with children:
Most annual travel insurance plans also include some level of accident insurance that will provide a term life benefit to your beneficiaries if you lose your life while traveling.
Damian Tysdal is the founder of CoverTrip, and he believes travel insurance should be easier to understand. He started the first travel insurance blog in 2006.