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Annual Travel Insurance

Annual Travel Insurance – Everything You Need to Know

Are you thinking of getting annual travel insurance?

Annual travel insurance is great if you are planning more than one trip.

Sometimes it’s cheaper than single trip insurance!

Check out this page for lots of resources to help you learn all you need to know about annual travel insurance.

Read on to see some examples of insurance incidents my guests have experienced.

Recommended Reading

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Yearly Holiday Insurance

Do I Need Travel Insurance?

What is Annual Travel Insurance?

Annual travel insurance is a policy that you pay for once and it covers you for a whole year. There is no limit on the number of trips you can take in a year, but often a limit on the number of days per trip.

If you are wondering whether you need travel insurance then here are some examples of things that have happened to guests I’ve taken on holiday.

All of these incidents have been covered in full by their travel insurance.

  • Fall requiring skin graft in Russia
  • A broken leg in Morocco
  • Fall and a broken leg in China
  • Atrial fibrillation episode in Spain
  • Heart problem in the Azores
  • Heart attack in Nice
  • Heart attack in Scotland

All these incidents required hospital stays, one of them for three weeks, and termination of the holiday.

All the guests, and their travelling companions, needed new flights, accommodation, transfers and more.

In 2022 I also saw the huge impact of COVID-19 on travellers including;

  • 8 guests had to isolate in Edinburgh for 3 weeks before returning to the US
  • 4 guests had to isolate in Shetland before returning to Edinburgh and then the US
  • 8 guests having to isolate for a week in Edinburgh before returning to the US

These incidents of COVID-19 all required new flights and hotel bookings. They also required new transfers and all meals and drinks for the duration of the isolation.

Without travel insurance my guests would have had to pay for everything themselves.

On top of this, they would have to make all the arrangements themselves too.

Travel insurance is one of my travel essentials for a reason.

It isn’t worth the financial risk to travel without it.

You might find more detailed post about travel insurance examples helpful.

You can easily compare over 200 travel insurance providers in one go at Compare My Travel Insurance.

Let’s look at what annual travel insurance is.

How Does Annual Travel Insurance Work?

Definition of Annual Travel Insurance

Annual travel insurance is a travel insurance policy that you purchase once a year. It is sometimes known as multi-trip travel insurance or yearly travel insurance.

It can cover pre-existing medical conditions and some policies offer winter sports cover too.

Whilst there is generally no limit on the number of trips you can take in a year with this type of travel insurance there is generally a restriction on the maximum number of days per trip.

So what are the main benefits of an annual travel insurance policy?

annual travel insurance image showing my feet and a sandy beach with parasols in portugal

What Is Annual Travel Insurance

What Are The Benefits of Annual Travel Insurance?

The main benefit of purchasing this type of travel insurance policy is that you are covered no matter how many trips you do in a year.

Annual travel insurance can also be much better value than single-trip travel insurance.

Taking out an annual insurance policy also means that you will have some cancellation coverage for trips you book after you have purchased your policy.

What types of annual travel insurance are there?

Annual Travel Insurance

Types of Annual Travel Insurance Coverage

There are a variety of options available with travel insurance annual policies. Cover can be adjusted to take into account;

  • Parts of the world you will be travelling to
  • Types of travel you will be undertaking i.e winter sports, holiday or business travel
  • Number of people requiring cover
  • Level of coverage with options to increase coverage levels as you prefer

You might find my post about what annual holiday insurance covers helpful if you would like some more details.

Let’s look at cancellation cover.

Annual Travel Insurance

Trip Cancellation Cover

One of the things this type of travel insurance covers is trip cancellation or abandonment for any trips you can during the year (providing you take out cover before you book).

This means any travel you book after taking out your insurance policy will have some cancellation coverage.

You will need to look at your specific policy for the specifics in relation to the amount of cover and excess payable.

Now let’s look at medical emergency cover.

Annual Travel Insurance

Medical Emergency Cover

Medical emergency insurance is provided with an annual policy the same as it is with single-trip travel insurance.

The difference with an annual policy is that the insurance cover is the amount for each person on the policy, not the total.

For example, let’s say the policy provides £20 million pounds of medical coverage on an annual travel insurance policies.

If there are 4 people covered by the policy it means each person gets £20 million pounds of coverage, it’s not £5 million pounds of coverage each (£20 million divided by 4 people).

Let’s look at what happens if your baggage is lost or delayed.

Annual Travel Insurance

Lost/Delayed Baggage Coverage

Baggage coverage is generally included in an annual travel insurance policy.

It is one of the items where the amount covered can be adjusted by paying a higher premium.

Now let’s look at how you find the right policy.

Annual Travel Insurance

How to Choose the Right Annual Travel Insurance Policy for You

Choosing the right travel insurance coverage is essential to ensure that your insurance is effective and covers you when you need it.

Let’s look at what you need to consider when choosing a policy.

annual travel insurance image showing portugal beach with blue boat on the rocks and white buildings in the background

Annual Travel Insurance

Consider Your Destination(s) and Activity Levels

Destinations

Think about which parts of the world you will be travelling to. This will affect the amount of premium you pay. If you choose to cover one part of the world and travel to another then you will not be covered. This could be very expensive.

Coverwise has 3 areas of the world as follows;

  • Europe (including the UK)
  • Rest of the World (excluding Canada, the USA and the Caribbean)
  • Rest of the World (including Canada, the USA and the Caribbean)

Activity Levels

You also need to decide if you require winter sports cover in your policy.

This includes any type of skiing or snowboarding activities.

It’s not just winter sports cover that you need to think of though.

During your holiday you might take part in all sorts of activities – things like horse riding, hot air ballooning, kayaking, scuba diving – this list is endless.

To ensure you have the right level of coverage it is worth checking what sports and activities are covered by your insurance.

Medical Conditions

You also need to ensure you declare all your medical conditions fully when applying for your travel insurance as this will affect your coverage.

Failing to declare your medical conditions can mean your insurance is invalid. If you miss something because you think it isn’t relevant you could void your travel insurance. Declare everything and that way you know you have cover no matter what happens.

For most travellers with an existing medical condition, an annual travel insurance policy should be OK, although the premium may be a little higher.

For those with more complex health conditions, for example, a history of heart attacks, stroke or transplant there are specialised medical travel insurance policies. These could be more cost-effective. You can generally buy these as single-trip or annual multi-trip travel insurance.

It is important to review the policy documents carefully. As with all insurance, you have a period to review the documents, cancel your coverage and get a refund if it isn’t suitable.

Use this time to review everything that is covered in your policy and everything that is not.

Many people make assumptions about travel insurance which can make things very difficult when they come to make a claim.

If you have more complex medical needs why not compare over 200 medical travel insurance providers quickly and easily. There’s annual policies, single trip, long stay and more.

annual travel insurance image showing caribeean princess cruise ship at invergordon

Annual Travel Insurance

Type of Travel

There are many different types of travel and you need to think about which types of travelling you will be doing during the whole year when buying an annual policy. Types of travel to think about are;

  • UK travel
  • Business travel
  • Cruises

You might find my article about annual travel insurance and cruise ship cover helpful

If you want to get a quote you can easily compare lots specialist cruise cover easily at Compare My Cruise Insurance

Annual Travel Insurance

Don’t Skimp on Coverage – Buy Enough to Meet Your Needs

It may be tempting to buy the minimum amount of cover you need so that you pay the smallest premium. Given the costs of things that is understandable.

Look at each area of the travel insurance policy and really think about whether it is enough for your travel requirements.

Here is a quick example comparing 3 levels of cover from an insurance company;

Standard annual travel policy – excess for most things is £125.00.

This means each time you claim you will get the amount of coverage, less £125.00.

For cash, this policy provides £300 of cover for cash that is stolen when you are travelling. However, for each claim you make you will only be paid £175.00 (£300 of cover less the £125 excess).

Gold policy – the excess is £50 and the cover is higher.

This policy provides £500 of cover for cash that is stolen while you are travelling, with an excess of £50. That means for each claim you make you will receive £450.

The difference between the cost of the two policies was £17.61 per year.

Now let’s look at when you should buy your travel insurance

Annual Travel Insurance

Make Sure You Buy Your Travel Insurance Before You Book Your Trip

Many people leave buying their travel insurance until after they have booked their trip.

That means they will not be able to claim any cancellation coverage under their travel insurance policy.

So make sure you buy your travel insurance and then book your holiday.

Why Is Annual Travel Insurance Cheaper Than Single

Cost of Annual Travel Insurance Policies Compared to Single-Trip Policies

It might seem safe to assume that annual travel insurance is more expensive than single-trip insurance coverage. That is not always the case so it is always worth checking.

Here’s a comparison I did comparing the costs with for single trip and annual insurance with the same travel insurance company.

Here is a reminder of the costs of an annual multi-trip policy for a solo traveller aged 52.

  • Europe (including the UK) – £12.95

  • Rest of the World (excluding Canada, the USA and the Caribbean) – £59.08

  • Rest of the World (including Canada, the USA and the Caribbean) – £72.32

Single Trip Cover is based on a single traveller, aged 52, taking one trip that is two weeks long;

  • Europe (this does not include the UK) – £15.16
  • Rest of the World (excluding Canada, the USA and the Caribbean) – £18.67
  • Rest of the World (including Canada, the USA and the Caribbean) – £49.84

As you can see by the prices there is not that much difference between a single trip and annual insurance cover.

Pros of Annual Travel Insurance

  • No need to keep taking out travel insurance cover
  • Premiums are generally great value, especially if taking more than 1 trip
  • Covers unlimited trips during a year. (Generally, there is a limit on the duration of the trip.)
  • Gives some cancellation cover to trips booked during the year (if the policy started before booking travel)

Cons of Annual Travel Insurance

  • It can be easy to forget to update the insurance company in relation to any health or medical issues.
  • There can be some time between taking out the insurance and taking a trip. This can mean there is a risk the health declaration is out of date.

Annual Travel Insurance – Summary

  • Annual travel insurance coverage is ideal if you plan to take more than 1 trip per year.
  • Annual travel insurance is not always more expensive than insurance a single-trip policy.
  • Buy your travel insurance before you book any travel to get cancellation cover
  • Declare all your health and medical conditions and keep this updated
  • For more complex health conditions check if specialised travel insurance might be cheaper

Easily compare over 200 travel insurance providers in one go at Compare My Travel Insurance.

Annual Travel Insurance FAQs

What travel is covered?

Leisure travel ie holidays are covered. Some companies cover business travel and some also cover winter sports activities too. You choose the cover that best suits your travel plans.

Where Does Annual Travel Insurance Cover?

Annual travel insurance provides cover to different regions of the world, which you select when you choose your policy. The most common annual travel insurance areas are;Europe (may or may not include the UK depending on the company)The World (excluding the US, Canada and the Caribbean)The World (including the US, Canada and the Caribbean)

Do We All Have to Travel Together with an Annual Travel Insurance Policy?

Anyone who is on the policy can travel on their own and they will still have cover as per the limits listed in the policy. (Check your policy conditions to be sure.)

Is the Cover Person or Per Policy?

If you take out an annual travel insurance policy the limits on the policy schedule are per person. For example, if the medical cover is £2 million pounds, the cover is £2 million per person on the policy.

How Many Trips Does it Cover?

Generally, an annual travel insurance policy has no limit on the number of trips that you can take in a year. There is usually a time restriction on the length of each trip.

Do I Have to Notify My Insurance Company of Each Trip?

Annual travel insurance means you can focus on enjoying your travels. There is no need to notify your travel insurance company of each trip. Just make sure that all the destinations you are visiting are covered in your policy, including any excursions, stopovers and cruise ports.

Is Annual Travel Insurance Suitable for Long-Term Stays?

An annual travel insurance policy will generally cover trips of around 3 weeks. Specialised insurance companies offer travel insurance for stays up to 18 months.

Does Annual Travel Insurance Cover Me If I Have Pre-Existing Medical Conditions?

The premium may be higher depending on the medical condition. Declare everything when you take out your insurance. For more complex medical issues specialised medical insurance may be cheaper.

Does Annual Travel Insurance Cover Cruises?

You need to check your policy to make sure but in general yes. However, you need to make sure that all the destinations you visit on your cruise are covered in the areas covered in your travel insurance policy.

Does Annual Travel Insurance Cover UK Holidays?

Some annual travel insurance does cover UK holidays. You need to check your policy to make sure. Coverwise, my recommended provider, includes UK holidays in its annual travel cover.

Does Annual Family Travel Insurance Cover Individuals?

Annual family travel insurance covers each of the individuals named on the policy. Each individual is covered as per the policy limits. The cover is per person not per policy.

When Does Annual Travel Insurance Start?

Annual travel insurance starts on whatever date you choose. The best time to start your policy is before you book any travel.

My Annual Travel Insurance Articles

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