10 Reasons to Have Annual Travel Insurance

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Annual travel insurance is a particular type of insurance policy that insures the holder for multiple trips during a year-long period. To put it simply, we don’t go anywhere without travel insurance and have been using annual insurance policies for more than 6 years now. 

Levels of coverage and specific details, inclusions, and exclusions, can vary depending on the insurance provider and the exact policy is taken out, but in general, annual travel insurance provides a way to be covered when making more than one trip within twelve months.

Usually, an annual policy will insure a traveler for as many trips as they make in the year, provided they depart from and return to their country of origin, where they took the policy out originally, within the allotted time.

While the number of trips that can be made is usually unlimited, or at the least very extensive, the number of days that can be spent abroad per trip, is usually limited.

This means that an annual travel insurance policy may not be the best option for a long term traveler or backpacker, however, it is perfect for those who make frequent, short trips or goes on vacation more than once a year.

If you are this type of traveler, then there are many reasons to take out annual travel insurance over single trip insurance. It can save you time and money, while of course, ensuring that you and your belongings are extensively insured when visiting other countries, as you never know what can go wrong.

Our Top 10 Reasons to Have an Annual Travel Insurance Policy

10 Reasons to Have Annual Travel Insurance

Save Time and Save Money

If you are planning on making more than one trip through the year and you know that you will want insurance to cover all of them, then taking out an annual travel insurance policy will inevitably save you countless hours of time, as well as more than a few dollars.

It’s more expensive to take out a single insurance policy for every trip, and in some cases, it can even be cheaper and always better value to take out an annual trip policy even if you might only take one vacation. This gives you more money to actually spend on the trip, and to put towards the next one later in the year.

With so many different insurance providers out there, it can be a real minefield researching all the different deals and figuring out what you need to be included in your policy. With annual insurance, once it’s booked, you’re covered for every trip.

You don’t have to spend more of your time browsing comparison sites and reading policy documents. 

We use Allianz Travel Insurance, simply use this link to get their travel insurance.

10 Reasons to Have Annual Travel Insurance

You Are Always Ready To Travel

As well as saving time and money though, an annual travel insurance policy will also provide you with peace of mind. Once it’s purchased, that’s it for the year, and you can literally make as many trips as you like, as long as you stick to the requisite number of days per trip.

That means that you can book last-minute deals, or fly off for the weekend, without the added hassle of remembering to buy insurance. Because you never know when something that requires insurance will actually happen, with an annual policy, you are always ready to go.

10 Reasons to Have Annual Travel Insurance

If you cancel your trip, you’re covered

All travel insurance policies come with trip cancellation as standard. Different levels of cover can be purchased from various different providers, so always check that the cost of your potential trips, flights, hotels, etc. – is covered if you have to cancel due to unforeseen circumstances.

Many travelers will leave purchasing their insurance until the last moment before they actually travel. However, taking out an annual travel insurance policy means that you are automatically covering yourself from the moment you book a flight or hotel.

If anything does, unfortunately, go wrong before your trip even begins, then you will be covered. As long as your reasons for cancellation are valid, you won’t lose out.

We use Allianz Travel Insurance, simply use this link to get their travel insurance.

10 Reasons to Have Annual Travel Insurance

If the company goes bust, you’re covered

The world of travel, and in particular flight and hotel bookings, can be confusing and at times a volatile place. Airlines can be grounded, hotels can shut down and tour companies can close.

Unfortunately for the traveler, these things can rarely be predicted and have historically proven to occur in an unpredictable manner.

While some governments and financial organizations – eg. ATOL – can offer some level of fiscal cover in these circumstances, it’s best to make certain that you are completely covered in case events outside of your control force the supplier you’ve already paid your money to, to shut down without warning.

Without insurance in this situation, you may lose out on all the payments you’ve made, you may not be able to book a new vacation and will be left out of pocket. An annual travel insurance policy though, would at the very least allow you to get that hard-earned money back, even if you have to wait to take your vacation again in the future.

10 Reasons to Have Annual Travel Insurance

Get Medical Treatment Abroad

Unfortunately, accidents and illness are a part of life. Even more, unfortunately, accidents and illness can still happen when you are on vacation, and in many cases, can be more likely to occur given an unfamiliar country or food.

Annual travel insurance policies will mean that you are covered medically for every trip you make abroad, so if you are unlucky enough to fall ill, then you can seek the best treatment wherever you are.

With medical cover though, it’s very important to read the small print, as it may be worth paying more to get a higher level of cover. Not all types of accidents will be covered in basic policies.

If you are taking a ski vacation in the winter and then a SCUBA diving trip in the summer, make sure you are covered for both before you buy. Many providers will have different sports packages or activities that you can add on, as well as emergency evacuation back to your home country in a serious case.

When we were traveling overland through Africa in 2015, David became seriously ill while we were in Uganda and needed to seek medical attention. We were in a small village and able to find a small hospital to treat him (see above).

It was sketchy, but everything was clean. Our travel insurance provider walked us through everything on the phone and was on standby for an emergency evacuation had his condition escalated. Luckily, the hospital was able to provide treatment that helped and we were able to continue our travels in Africa.

You will need to declare any previous medical conditions too, or you may invalidate the insurance from the start if you fail to do this.

10 Reasons to Have Annual Travel Insurance

You are covered for Dental Treatment too

Although you will be covered for medical assistance, double-check this covers dental treatment too. It may not seem important, but most annual travel insurance policies will include some level of coverage.

When you are on vacation you never know what might happen to your teeth and obtaining treatment abroad can be just as painful on the wallet as it is on the teeth.

Like medical coverage, the more you pay in terms of your premium, the more you are going to be covered financially if something unfortunate does happen.

10 Reasons to Have Annual Travel Insurance

Lost or Stolen Passport

One of the worst nightmares for any traveler is losing their passport or having it stolen. No matter how much you look after this incredibly valuable and important document, if the worst does happen, you want to know that you have a get-out option.

An annual travel insurance policy will keep you covered through the year, on any of the trips you make, if this worst-case scenario does happen to you. When you lose your passport, you will not only need to report it to the local police, but you will need to secure a new passport or emergency travel document that allows you to fly home or leave the country.

This all costs money, and you should check that your insurance policy covers not only the cost of a replacement passport but also any emergency documents and charges you might incur too.

10 Reasons to Have Annual Travel Insurance

Your Personal Belongings are Insured

Having a solid annual travel insurance plan will mean that you are covered not only in the case of a lost or stolen passport but in case your bags or belongings are stolen too.

The level of financial compensation will vary greatly depending on your premium, and if you have very expensive items, it may be worth taking out additional levels of insurance to be sure that you are adequately covered. Likewise, if you travel light and leave your expensive items at home, you may be okay with a lower level of cover.

Our annual policy covers a small number of electronics that would work for most travelers. However, as professional photographers, we carry a lot of expensive gear so we do have additional gear coverage through another provider to protect our investment and business if it were to be stolen while traveling.

10 Reasons to Have Annual Travel Insurance

Lost Luggage and Flight Delays

Airlines can be extremely unpredictable in a world of quick connections and extensive flight schedules. It’s not uncommon for luggage to, unfortunately, go missing or for flights to be heavily delayed.

Annual travel insurance will help you out immeasurably in the event that your luggage is lost by the airline or even delayed, allowing you more freedom to still enjoy your vacation at the other end, by providing finances to purchase replacements. 

An annual policy will also provide compensation for lost luggage, allowing you to purchase new items while you’re on your trip waiting for your bags to catch up. 

During long flight delays, you may find it easier to deal with your insurance provider rather than the airline, as they may be able to get you a hotel for the night or even compensation for lost time spent at the airport waiting.

It is getting more and more common for airlines to delay or cancel flights due to ‘weather’, which means they are not obligated to put you up or cover your food expenses while you scramble to rebook on another flight. If you have travel insurance you can make a hotel booking and grab a meal knowing you will be reimbursed for it.

In 2018 we experienced 9 flight delays and cancellations that required us to overnight unexpectedly and rebook. Only one of them resulted in the airline put us up and we were so grateful that we renew our annual travel insurance plan every year. Every single out of pocket expense was covered and reimbursed.

10 Reasons to Have Annual Travel Insurance

Death and Repatriation

You may not want to think about this before a vacation, but taking out annual travel insurance will actually mean that you won’t need to think about this unlikely scenario before each trip, as you’ll already be covered if the worst should happen.

Or, perhaps more appropriately, your family will be covered, as a good plan, you should allow for compensation and repatriation on the event of your death while abroad.

hiking on Vancouver Island - Annual Travel Insurance

Emergency Evacuation

While often overlooked, this is one of the first things we look at on a policy. If you like to travel to offbeat places or go on real adventures that involve hiking, camping, etc, having a good emergency evacuation limit is invaluable.

Our current policy covers us for any type of extraction from literally anywhere in the world with Global Assist. This gives us insane peace of mind because we like to go off-grid when we travel.

Knowing we have this coverage and then making sure to cover and emergency satellite phone and GPS device mean we don’t have to worry if something goes wrong.

We use Allianz Travel Insurance, simply use this link to get their travel insurance.

Easter Island Divergent Travelers

Travel and Insurance

I know that travel insurance is a boring topic and one that most people avoid when it comes to planning vacations but it is probably the most important decision you will make in your travel plans.

Don’t put off purchasing insurance once you book your trip. You want to be covered in case of cancellation, unexpected natural disasters or family issues. Once you’re airborne, you want to have the peace of mind in your destination that is things go wrong, you’re covered. It’s worth it.

We don’t travel without travel insurance and you shouldn’t either.

This post is sponsored by our partner Allianz Travel (AGA Service Company) and we have received financial compensation as ambassadors, but all opinions expressed are our own.

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About Lina Stock

Lina is an award-winning photographer and writer that has been exploring the world since 2001. She has traveled to 100 countries on all 7 continents. Member: SATW, NATJA, ATTA, ITWA

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