Annual Travel Insurance

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How does annual travel insurance work?

Annual travel insurance works the same way as single-trip insurance. The main difference is that annual travel insurance covers multiple trips you plan to take throughout the year, and you only purchase coverage once. An annual travel insurance plan limits you to a certain number of days per trip, as indicated by a policy; therefore, when you buy a policy, you must know the maximum trip duration for your longest trip. Although you will not need to know the number of trips you plan to take or the exact destinations when purchasing a policy, you will need to know the region you plan to travel to. With annual travel insurance, you will be covered until your policy expires or you reach a benefits maximum payout amount. Coverage, unfortunately, does not reset for each of your trips. To understand your coverage, closely read your insurance plan’s terms, conditions, limitations and exclusions.

What does annual trip insurance cover?

Annual trip insurance will cover you for multiple trips in a 12-month period. Coverage includes benefits such as emergency medical, medical evacuation, travel delays, baggage loss, theft, or damage. Several plans also offer COVID-19 coverage. However, annual trip insurance doesn’t include trip cancellation, trip interruption, or cancel for any reason (CFAR) benefits. If you want a more comprehensive policy, you can opt for different options, add-on benefits, and tailor your plan to suit your travel needs. Before you purchase an international policy, check the Government of Canada’s Travel Advice and Advisories webpage to find out if a travel advisory has been issued for the region and destinations you plan to travel to. Once a travel advisory has been issued, claims could be denied. Ensure you read the details of a policy closely.

How much does annual travel insurance cost?

A rule of thumb regarding travel insurance is that it will cost approximately 4-10% of your total prepaid, nonrefundable trip cost Annual travel insurance for trips abroad typically costs more than a single-trip policy. However, it’s more affordable for frequent travellers than purchasing a single-trip policy for each trip within a year. Cost is based on the type of coverage you purchase and factors such as age, the duration of your most extended trip, medical limitation, deductible, and the options and add-ons you choose.

Annual travel insurance is also affordable for your family since everyone living in your household can be covered under one policy for an entire year. Every provider and plan define “family” differently, and although a family is traditionally considered to be spouses/domestic partners, children, and dependents, sometimes family includes seniors/grandparents. However, each family member does not have to travel on every trip; only the primary policyholder does. On an annual plan, the primary policyholder will cost the most, and a spouse/domestic partner and other members will increase the cost, but often children are free.

When should long-term travel insurance start?

Annual travel insurance for two or more shorter trips should be purchased before your first trip departure. Coverage will start when you buy a policy and will cover you for a year. Once the year ends, you can renew your policy or purchase a new one. On the other hand, long-term travel insurance for trips longer than three months should also be purchased before your first trip departure.

Is annual trip insurance worth it?

Annual trip insurance is designed for frequent travellers. It can be worth investing in if you plan to take a holiday more than twice a year because it can save you time and money. You purchase an annual policy once, which is cheaper than a single-trip policy for each planned trip in an upcoming year. Also, annual trip insurance is wise if you are not looking for the trip cancellation benefit (since you would need to add that benefit to a policy), purchase last-minute vacation deals, travel on short notice or travel for business solo.

Which annual travel insurance policy is the best?

Although travel insurance depends on your needs, the best plans typically include COVID-19 coverage, medical evacuation coverage up to $1 million per person, travel delay coverage, baggage coverage, limits and deductible options and add-on coverage options. If you have a pre-existing condition(s) and plan to travel by air, your plan should also cover pre-existing conditions, and you should consider adding the trip cancellation benefit. The simplest way to find out which annual plan will be the best for you is to get a personalized quote and compare policies online with us.


DISCLAIMER: This guidance in this article is provided for informational and educational purposes only. It is intended to offer guidance regarding travel insurance and the benefits which may be available. It does not guarantee coverage for any traveller. The information in this article reflects the most up-to-date information available at the time of publication. If you have questions regarding specific coverage details or available travel insurance plans, please contact our licensed customer care team.