How Does Annual Travel Insurance Work? Guide & Tips

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Are you interested in an annual travel insurance policy?

Not quite sure how this type of policy works?

Check out this quick guide which will give a quick overview and some suggestions to get the most benefit.

The details and information in this post are from my recommended travel insurance provider, Coverwise. They are who I use for my insurance. I find their prices great value and their coverage very good. They include business cover and cover for trips in the UK in their policies which is also helpful.

How Does Annual Travel Insurance Work – Buying a Policy

When it comes to buying there is very little difference between buying an annual travel insurance policy and a single-trip policy.

First off you need to choose annual travel insurance as the policy you want.

You then have to select whether you need winter sports cover in your policy or not.

You have to select which part of the world you plan on travelling to.

Start Date

You need to choose a start date for your policy. For an annual travel insurance policy the start date is the beginning of the year that the policy will run from.

PT Tip

Choose the earliest start date possible and ideally take out your travel insurance before you book any travel. That way you will have some level of cancellation coverage for your trip. If you book your trip before you take out your travel insurance policy you will have no cover or less cover (check your policy for details).

Travellers and Ages

You have to give details of the number of travellers and their ages.

Level of Cover

You then choose what level of cover you would like from the options available.

PT Note

Don’t just look at the cost of the insurance. Check the excess and the amount you would need to pay in the event of a claim. The higher premium you pay the lower the excess is. Standard and Bronze cover has the lowest premium but an excess of £125 or £200 depending on the item being claimed. Silver Plus and Gold policies have a £50 excess. This could mean that if you had to claim paying a higher premium would pay for itself.

PT Note

Also, check what is covered before making your choice. Silver Plus and Gold policies include cover for abandonment, missed and delayed departure which Standard and Bronze policies don’t.

Medical Declaration

Once you have chosen your level of cover you need to complete a medical declaration for all of the travellers on the policy.

PT Note

Ensure you declare every condition and all the medication you are taking even if you don’t think it is relevant or will have any effect on your travelling. Failing to declare any condition could invalidate your insurance policy in the event of a claim.

Starting Your Policy

Once you click confirm and buy your policy you will get your policy documents. You should take the time to read these thoroughly and check the policy details.

You have a ‘grace’ period where you can cancel your policy and get a full refund. This is generally around 14 days so use this time to double-check all the details.

Annual Travel Insurance Coverage Levels

The level of coverage on an annual travel insurance policy is per person not per policy.

For example, all Coverwise policies have £20 million pound of medical expenses covered. If your annual travel insurance policy is for more than 1 person then each traveller is covered for that amount.

The same applies to cancellation coverage and all the other items listed on the policy schedule.

Annual Travel Insurance Policy Tips

One of the great things about annual travel insurance is that you buy a policy and you are covered for travel but you need to remember a few key things to ensure that cover remains in place.

Amend Your Policy If You Decide to Travel To Another Region of the World Not Covered

If you take out cover for Europe and you then travel to the USA you will not have any travel insurance for your trip to the USA. Make sure you know what areas of the world you have cover for and amend your policy if you decide to travel anywhere else.

Check Overnight Stops and Cruise Ship Destinations

If you are taking any trips that involve an overnight stay you need to ensure you have cover to that region covered in your policy.

The same applies to any day trips you might take, or cruise ship excursions or stops.

Update Your Health Conditions

If you have any new health conditions or are prescribed any new medication you need to update your travel insurance policy.

This can involve a phone call rather than updating online which can be a bit time-consuming.

However, it is essential to do this otherwise you may not be covered if you needed to make a claim.

Travellers Do Not Have to Travel Together But Some May Need Permission

If you take out a policy for 4 family members they do not all have to travel together. Each traveller is covered independently under the policy.

You just need to ensure that any family members under 18 have their parents/guardians’ permission to travel otherwise they may not be covered.

Annual Travel Insurance Renewal

One of the great things about annual travel insurance is that it covers you for a whole year. It’s super convenient for regular travellers.

When it comes time for renewal the policy will generally renew automatically. You can usually turn this option off in your account if choose to or you will get a reminder before the renewal to advise the price. If that’s the case you can choose to let the policy renew automatically or cancel it if you want to get insurance elsewhere.

Annual Travel Insurance Conclusion

Annual travel insurance is super convenient for regular travellers
As with any insurance you need to be familiar with the terms, conditions, and policy details to ensure you are covered for your travel
You need to remember to update your policy with any changes in health conditions or medication for all of the travellers on your policy. Failing to do so may mean no travel insurance.