Should You Get An Annual Travel Insurance Policy?

If you’re a regular traveller going abroad many times in a single year, it may be worth considering an annual travel insurance plan.

Unlike having to take out insurance before every trip, you can buy one policy that covers every holiday or trip you take within 12 months. With one purchase of an annual insurance policy, frequent travellers will have the convenience of knowing they’re covered every time they set off.

Although useful for frequent fliers, it may not be the best value for money if you’re not going on many trips. This guide aims to help you decide whether an annual trip insurance policy is right for you.

How often are you flying?

Deciding to get an annual policy depends on how frequent you travel within a year. If you’re just going for a holiday once or twice, a single trip cover should work for you.

If you know you’ll likely travel out of the country frequently and may stay longer; you’re a perfect fit for an annual insurance cover. This suits people who are going on business trips regularly or families who have two or more yearly holidays.

Where are you travelling to?

Annual travel insurance policies do not cover the entire globe. In fact, there are usually 3 categories you can choose from when selecting your annual cover:

Europe
Worldwide, excluding the USA, Canada and the Caribbean islands
Worldwide

Each category may have altering prices due to the perceived risks and scope of the regions. Having policies broken down like this can make your coverage more expensive, depending on your destination.

If all your holiday destinations are in Europe, then you’ll be able to have the cheaper European policy. If you want to visit America, then you’ll have to get a new policy to include that region. This can make the insurance rather expensive.

Also, do note some countries may not be covered once classified as dangerous or risky by the FCO (Foreign & Commonwealth Office).

How long are your trips?

Despite being able to take multiple trips with an annual travel insurance policy, most providers are likely to have a limit on how long each trip can be.

Usually, this limit is 30 days. This means if you’re planning on taking trips that exceed this timeframe, then you likely won’t be able to get an annual travel insurance policy. Some providers may be able to up this to 90 days, although this may increase the cost of your insurance.

Some policies also set a total travel limit. Most should set a total limit of 180 days within a year. Each time you take a trip, the length of your trip will add to your total limit, and once you go beyond 180 days, you’ll no longer be covered. It pays to check your policy when getting an annual trip cover and determine if a total limit is set.

What does it cover?

Annual travel insurance has the same coverage as single trip policies, which include cover for:

Cancellation and Delays
Medical Expenses
Baggage and Personal Money
Repatriation

It does not include additional travel insurance cover you may have to add to a policy, such as extreme sports travel insurance. This means this type of travel insurance may not suit those who frequently travel for skiing.

Single trip or an annual policy?

Deciding whether to get a single trip or annual trip travel insurance policy depends on your circumstances. If you only have to travel once or twice within a year, it may suit you to get a single trip cover. If you’re travelling more than 3 times a year, it may be appropriate to consider an annual travel insurance policy.