Some travelers opt for annual travel insurance and believe it the most economical insurance for them. So what makes it different from other types of travel insurance? The biggest difference is that it covers multiple trips that are taken for an entire year. So if you’re going to be making multiple trips you may want to check it out.
What’s Different with Annual Travel Insurance?
With standard trip insurance the amount of cancellation or trip interruption insurance is based upon the total pre-paid non-refundable cost for a particular trip. With an annual policy the total travel costs won’t be known when you initially purchase the plan. For this reason the trip cancellation/trip interruption coverage is very limited.
Most of the time coverage is available for a flat limited maximum amount (e.g. $1,000). You’ll want to check on the specifics of the policies you are considering. Sometimes this may be limited to only one trip. Usually though added trip cancellation and interruption coverage can be added for an additional premium. When evaluating the costs consider the risks. How many trips will you likely be taking and what are the chances you’ll need to make multiple claims under the trip cancellation and interruption coverage during the year.
Who Would Most Benefit From Annual Travel Insurance?
For those travelers who will be making several trips abroad it is a good buy. With annual trip insurance you what amount of coverage you have for each trip. You won’t have to go out and look for new insurance every time you travel.
There are a lot of situations where this would be beneficial. Certainly if you travel frequently on business and provide your own insurance this is the plan you want to have. Maybe you will be making several trips out of the country to receive special medical treatments. Maybe you have family abroad and you plan on making several trips to visit over the next year. Suppose you have just retired and you plan on traveling to all those places you never had a chance to when you were working.
Any of these situations would be a good candidate for annual travel insurance. You may find depending on the cost that it only takes a couple of trips to be less expensive than purchasing separate coverage for each individual trip.
What Is Covered under Annual Travel Insurance?
Other than the differences in trip cancellation coverage, annual travel insurance plans cover just about everything that is covered under a standard travel insurance policy. You’ll want to check the limits on the various plans you are thinking about. The limits are usually for all trips taken during the year not the limits per trip. Although you could hit the maximum coverage on one trip if you had a large claim.
All the medical insurance coverages you would find in a single trip plan you would normally have in the annual insurance plan. The same restrictions for pre-existing medical conditions would apply so if this applies to you make sure you disclose the condition and check to see if they are covered or a waiver can be obtained under certain conditions.
You should be able to find a good annual travel plan for about $200 – $300 per person. This will vary depending on any addition trip cancellation coverage you may want and on other things such as the longest number of days for any one trip, your age, etc.
Not all plans are the same or have the same coverages and limits. Do your homework and you’ll find a great plan to meet all your needs. Enjoy all your trips knowing you have good coverage and protection.