What Is Annual Travel Insurance?
Annual travel insurance — also known as multi-trip travel insurance — can protect multiple trips over a year. For frequent travelers planning several vacations in a year, an annual travel insurance plan can offer a more economical option than purchasing multiple single-trip policies. With annual travel insurance, you should only pay one premium for a year’s worth of coverage.
While each annual travel insurance plan varies by provider, you may find that per-trip or yearly coverage limits apply rather than item-specific limits. In addition, some coverages found with single-trip policies are not typically included in an annual travel insurance plan, such as trip cancellation insurance, baggage loss and rental car coverage. Providers may also not offer the option to add cancel for any reason (CFAR) coverage with an annual plan. Annual travel insurance usually focuses more on medical protection versus a broader range of coverages, based on our assessment.
The 5 Best Annual Travel Insurance Plans
Based on our team’s extensive research on annual, multi-trip travel insurance plans, we’ve named the following as our top picks.
- Seven Corners: Trip Protection Annual Multi-Trip
- Trawick International: Safe Travels Annual Basic
- International Medical Group (IMG): Patriot Multi-Trip Travel Medical
- Allianz Travel Insurance: AllTrips Premier
- AIG Travel Guard: Annual Plan
Seven Corners Travel Insurance
Our pick for COVID-19 coverage
4.5
Our Review
Recommended policyTrip Protection Annual Multi-TripAverage annual cost$376Medical coverage maximum$250,000 annually
Pros and Cons
Pros Includes trip interruption coverage up to 150% of your outlined limit Customizable trip cancellation coverage limits of up to $10,000 Offers pre-existing condition coverage Cons Limits travel medical coverage to $50,000 for New Hampshire residents Only covers pre-existing conditions for 60 days into your plan term
Why We Picked Seven Corners
Seven Corners provides annual coverage through its Trip Protection Annual Multi-Trip plan. The plan includes COVID-19 protection, trip cancellation insurance and pre-existing condition coverage as standard, and allows for unlimited trips lasting 40 days or less throughout your policy term. You can also customize your annual trip cancellation limit, with up to $10,000 in total benefits.
Trawick International
Our pick for COVID-19 coverage
4.5
Our Review
Recommended policySafe Travels Annual BasicAverage annual cost$155Medical coverage maximum$10,000 per trip
Pros and Cons
Pros Trip cancellation coverage is included as standard Charges a flat-rate cost of $155 per person Baggage delay includes sports equipment rentals Cons Low medical evacuation coverage limits compared to other companies we reviewed Non-refundable plans for New York and Washington residents
Why We Picked Trawick
If you’re looking for basic coverage at a low cost, Trawick International offers its Safe Travels Annual Basic plan for a flat rate of $155 per person. Coverage extends up to 30 days for each trip taken more than 100 miles from home during your coverage period and can apply to both U.S.-based and international trips. While Trawick features lower coverage limits than other providers on our list, it offers 100% trip cancellation coverage at no additional cost.
International Medical Group
Our pick for budget coverage
4.4
Our Review
Recommended policyPatriot Multi-Trip Travel MedicalAverage annual cost$245Medical coverage maximum$1,000,000
Pros and Cons
Pros Offers emergency dental coverage up to the maximum limit of $1 million Covers pre-existing conditions Provides coverage for evacuation due to political reasons Cons Maximum coverage for travelers aged 70 to 75 years old is $50,000 Only covers 80% of expenses up to $5,000 outside of the company’s preferred provider network
Why We Picked IMG
International Medical Group (IMG) provides the highest medical coverage maximum of all the providers on our list through its Patriot Multi-Trip Travel Medical plan. The policy offers protection of up to $1 million after paying a $250 deductible for medical benefits, dental, emergency medical evacuation and more. IMG also provides medical and emergency medical evacuation coverage if you have a sudden and unexpected recurrence of a pre-existing condition. Note that you can upgrade your plan to allow for 45 days of coverage per trip versus 30 days.
Allianz Global Assistance
Our pick for budget coverage
4.1
Our Review
Recommended policyAllTrips PremierAverage annual cost$485Medical coverage maximum$50,000 per trip
Pros and Cons
Pros Covers trips lasting up to 90 days Provides epidemic coverage, including COVID-19 Offers trip cancellation and interruption coverage up to $15,000 per year Cons Most expensive provider in our review Rental car coverage is not offered to Kansas, Texas and New York residents
Why We Picked Allianz
The Allianz AllTrips Premier plan provides annual travel insurance coverage for your entire household through one plan — regardless of whether you travel separately or together. The plan includes trip cancellation and interruption benefits as standard coverage, but you can customize the coverage limits at an additional cost. The AllTrips Premier plan also provides rental car coverage, which most providers in this review lack.
AIG Travel Guard
Our pick for budget coverage
4.6
Our Review
Recommended policyAnnual PlanAverage annual cost$259Medical coverage maximum$50,000
Pros and Cons
Pros Offers missed connection coverage up to $500 per year No age limit to purchase a policy Money-back guarantee within 15 days of the effective policy date Cons No trip cancellation coverage Per item restrictions for personal effects apply to baggage coverage
Why We Picked AIG
AIG Travel Guard (AIG) offers one annual travel protection policy, called the Annual Plan. It provides non-flight accidental death and dismemberment coverage up to $50,000, which is not typically included in other yearly policy offerings based on our review. AIG also offers up to $100,000 specifically for security evacuations. Note that there is no age limit to purchasing a policy — the only requirements include holding U.S. residency and buying the policy no later than 24 hours before departure.
Compare Annual Travel Insurance Plans
You can refer to the table below for a side-by-side comparison of our team’s picks for the best annual travel insurance policies.
| Provider | Recommended Plan | Cost* | Medical Coverage Maximum | Evacuation Coverage Limits | Visit Site |
|---|---|---|---|---|---|
| Trip Protection Annual Multi-Trip | $376 | $250,000 annually | $500,000 annually | Get Quote |
| Safe Travels Annual Basic | $155 | $10,000 per trip | $50,000 per trip | Get Quote |
| Patriot Multi-Trip Travel Medical | $245 | $1 million annually | $1 million annually | Get Quote |
| AllTrips Premier | $485 | $50,000 per trip | $500,000 per trip | Get Quote |
| Annual Plan | $259 | $50,000 annually | $500,000 annually | Get Quote |
| Provider | Recommended Plan | Cost* | Medical Coverage Maximum | Evacuation Coverage Limits | Visit Site |
|---|---|---|---|---|---|
| Trip Protection Annual Multi-Trip | $376 | $250,000 annually | $500,000 annually | Get Quote |
| Safe Travels Annual Basic | $155 | $10,000 per trip | $50,000 per trip | Get Quote |
| Patriot Multi-Trip Travel Medical | $245 | $1 million annually | $1 million annually | Get Quote |
| AllTrips Premier | $485 | $50,000 per trip | $500,000 per trip | Get Quote |
| Annual Plan | $259 | $50,000 annually | $500,000 annually | Get Quote |
*Our team gathered quotes from each provider’s website for the above-listed plans based on a 30-year-old sample traveler.
How To Choose an Annual Travel Insurance Plan
There are several steps you can take to help make the process of choosing an annual travel insurance plan easier while ensuring you pick the right plan for your needs as a traveler.
First, it is best practice to research providers before choosing an annual travel insurance plan. Not all travel insurance providers offer this type of policy, and for the ones that do, we recommend you consider industry and customer reputation when making a decision. Note the coverage limits, medical benefits and any additional add-ons each company offers. While the providers listed in this article are our top picks for annual coverage, every traveler’s needs and best-suited plan will vary.
If you have your travel itinerary for the year mapped out and know what you’re looking for in terms of coverage, consider an annual plan that aligns with your needs and concerns. For example, if you have a pre-existing medical condition, you may consider a provider that provides a pre-existing condition waiver and high medical coverage limits. If you’re more concerned about cancellation coverage, you may choose a plan that offers this type of protection, which not all companies include in their annual plans.
How Does Annual Travel Insurance Work?
Annual travel insurance works by covering a traveler during multiple trips over the course of a year. There’s usually no limit to the number of trips you can take during this time. However, companies do include limits on how long each trip can last under coverage. This limit varies by provider, but a standard threshold is a maximum of 90 days based on our review.
Some annual travel insurance benefits work on a per-trip or per-year basis. For example, a yearly plan may have a baggage loss limit that resets every trip, while it sets separate limits for trip interruption benefits for an entire year of travel. Plans are typically non-renewable, so once your coverage is up, you would have to buy a new plan to cover another year of travel.
After purchasing a plan, coverage begins on the effective date, which your provider should list within your policy documents. Coverage ends on your policy’s expiration date, which your provider should also detail within your policy. How long coverage extends per trip, and the associated coverage levels, will depend on your provider.
MARKETWATCH GUIDES TIP
We recommend you read your policy carefully to ensure you fully understand the applicable limits of your annual travel insurance plan.
Benefits of Annual Travel Insurance
The benefits of an annual travel insurance plan include low costs compared to purchasing individual plans, convenience and consistent coverage across all of your trips. Learn more in the sections below.
Cost-Efficiency
Annual travel insurance plans are often more cost-efficient than several single-trip policies, according to our quote collection process. If you’re taking more than one or two trips within a year and looking for coverage on a budget, you may consider an annual travel insurance policy.
Convenience
Purchasing one travel insurance policy to cover a year’s worth of multiple trips is easier than buying several single-trip policies. You only need to worry about one set of terms, conditions, policy limits and more instead of juggling multiple plans.
Consistent Coverage
An annual travel insurance policy can ensure that coverage stays consistent throughout your travels. You can take trips of varying lengths to different destinations, but your coverage and benefits should remain the same within your term limits.
Drawbacks of Annual Travel Insurance
As with most types of insurance, there are both pros and cons to annual travel plans. These drawbacks include limited benefits and a variety of exclusions, which we’ll detail below.
Variety of Exclusions
Many providers do not include trip cancellation coverage if you purchase a basic annual policy. While some providers allow you to add these benefits to annual policies for an extra cost, coverage is not typically included as standard as with a single-trip policy.
Offers Lower Limits
Annual travel insurance limits are often lower than with a single-trip policy. If you’re looking to insure a costly trip or need a plan with high medical coverage limits, you may want to consider a single-trip plan instead.
Annual Travel Insurance vs. Single Trip Travel Insurance
You will likely notice differences and similarities when comparing annual travel insurance versus single-trip travel insurance policies. For one, both yearly and single-trip policies usually bundle travel medical, emergency medical evacuation, baggage loss, baggage delay and travel delay coverage within a standard policy. Single-trip policies, however, often include trip cancellation benefits, which many annual policies only offer as an add-on.
Both annual travel insurance and single-trip policies limit the length of trips covered. For yearly plans, limits can range from 30 to 90 days for a single trip, and you’ll need to head back to your home base in between trips. For a single-trip policy, plans often limit trip length to no longer than 180 days.
Cost Differences Between Annual and Single-Trip Travel Insurance
Annual multi-trip policies can be more cost-effective than single-trip coverage for frequent travelers, based on our review. Typically, single-trip policies may benefit travelers taking one or two trips in a year. Annual travel insurance is usually more suited for those who travel often, taking upwards of three trips or more within a year’s time.
There are times when a single-trip plan may better suit your needs compared to an annual policy. For example, if you are taking high-end, luxury trips with a high overall cost, you may benefit more from single-trip policies for each trip with high cancellation and interruption limits.
Who Needs Annual Travel Insurance?
Various types of travelers could benefit from an annual coverage plan. A multi-trip travel insurance plan is worth considering if you travel frequently for business or pleasure and do not need coverages such as trip cancellation insurance. Annual insurance may also suit travelers who like to take last-minute trips or longer vacations, as having an annual travel insurance plan in place can offer more convenience.
Annual plans are also worth considering for lower-cost trips where the primary concern is covering a potential medical emergency. As mentioned, annual plans do not usually offer trip cancellation coverage as a standard inclusion. However, they typically include medical expenses and emergency medical evacuation coverages — ideal for those looking to protect their health versus trip expenses during their travels.
If you’re taking expensive or high-value international trips throughout the year, you may prefer a single-trip policy for the trip cancellation benefits that come with each plan. Or, if you’ve booked a variety of non-refundable expenses, such as hotel or tour reservations, a single-trip plan with cancellation coverage may also better suit your needs.
What Does Annual Travel Insurance Cover?
Annual travel insurance policies offer a variety of coverages to offer financial protection if unexpected events occur. From medical emergencies to travel inconveniences, yearly plans can provide comprehensive coverage for peace of mind.
| Coverage Type | What’s Typically Covered |
|---|---|
| Medical Care Abroad | If you need emergency care during your travels abroad, travel medical insurance through an annual travel insurance policy can cover emergency medical expenses up to a set limit. Most domestic U.S. health insurance policies will not offer coverage overseas. However, travel medical coverage can help cover medical bills related to illnesses or injuries that occur during your international travels. |
| Trip Cancellation or Interruption | Trip cancellation insurance is not typically included as a standard coverage with an annual travel insurance plan. However, you can often purchase it as an add-on for an additional cost. Trip cancellation coverage can reimburse your pre-paid and non-refundable travel expenses, such as hotel reservations, airline tickets, attraction or excursion bookings, and more. Trip interruption coverage can reimburse you for unused and non-refundable travel expenses if your trip gets cut short for a reason covered under policy terms. Unlike trip cancellation insurance, trip interruption coverage usually comes standard with an annual travel insurance policy at no additional cost. |
| Baggage and Personal Items | Most yearly travel insurance plans offer baggage coverage limits for delays and losses. If you’re without your luggage due to a delay, this coverage can provide reasonable reimbursem*nt for any items you need during that time. If an airline loses your baggage, for example, you could receive reimbursem*nt up to a set amount based on the items you’ve lost. |
| Trip Delays | If you experience a trip delay due to a covered reason, such as severe weather, travel delay coverage can help cover meals, hotel accommodations and more while you wait for your travels to resume. This coverage can also protect any other travel plans or reservations affected by the delay. |
Exclusions and Limitations of Annual Travel Policies
Annual travel insurance policies usually have the same exclusions as single-trip policies. Typically, pre-existing medical conditions are not covered. Still, some providers offer a waiver to extend coverage for medical bills or claims related to your recent medical history. Standard annual policies don’t cover adventure sports, but this coverage is often available as an add-on. Moreover, “foreseeable” events, such as natural disasters or named storms that began before you purchased your policy, are also excluded from annual travel coverage.
The coverage provided through an annual travel insurance policy also has limitations. For example, travel medical expenses and emergency medical evacuations have capped monetary limits. If the medical bills incurred during your travels cost more than the coverage you’ve purchased through your policy, you will have to cover the excess out-of-pocket. In addition, trip interruption benefits will cover a percentage of your non-refundable travel expenses, with the amount depending on your plan and provider.
According to Angela Borden, Product Marketing Specialist at Seven Corners, “One of the most common reasons for a denied claim is because a traveler misunderstood the details of their plan. If you have any questions about what’s covered, contact your provider. They’ll be able to address any concerns so that you can travel more confidently.”
We recommend you read through your annual travel policy documents thoroughly to understand the exclusions and limitations associated with your coverage.
How To Buy Annual Travel Insurance
Purchasing an annual travel insurance policy is usually a straightforward process, as most providers allow you to get a quote and buy a policy entirely online. However, there are some specifics to pay attention to when purchasing a policy.
Coverage Start and End Dates Vary
It is best practice to pay attention to when your coverage starts and ends with your chosen policy. Most providers specify the start date as when you begin your travels. Plans will likely end a year after your start date or when your benefits are exhausted, whichever comes first. Coverage for each trip cannot exceed the specified maximum length outlined in your policy, so take note of the stipulations around coverage start and end dates.
Understand the Claims Process
It can help to understand how to file a claim with your provider before an emergency occurs during your travels. Many companies allow you to file a claim online, but you can often speak with a claims representative during specified hours if you’d prefer to talk to someone over the phone. You’ll likely have to provide documentation for your claims, so we recommend you keep all receipts and other necessary documents during your travels.
Look for Add-On Options
Some annual travel insurance providers offer optional add-on coverages for an additional cost. You may find that you can customize your coverage limits as well. For example, Allianz and Seven Corners allow you to choose your trip cancellation coverage limits, but increasing the amount can result in an additional cost. Other companies, such as IMG, provide adventure sports riders for those looking to participate in activities such as paragliding, skydiving, windsurfing and more.
Is Annual Travel Insurance Worth It?
Annual travel insurance plans can be worth it for certain travelers. If you travel frequently for business or pleasure and prefer consistent, cost-effective insurance protection, an annual multi-trip policy may be the right choice for you over a single-trip policy. However, examining your unique coverage needs can help you better gauge whether you need a yearly policy.
“When you’ve made a financial investment in your trip or need to protect your health when you travel, travel insurance is 100% worth it. Travel insurance can reimburse you for prepaid, nonrefundable trip expenses if you need to cancel or interrupt your trip for a covered reason. This means you get money back in your pocket if the unexpected happens. Travel insurance can also reimburse you if your belongings are lost, stolen, or damaged and you need to replace them during your trip.”
Angela Borden, Product Marketing Specialist at Seven Corners
We encourage you to gather multiple annual travel insurance quotes from various providers, comparing the costs and coverage limits on each policy. This can help you choose the coverage that best fits your needs.
Frequently Asked Questions About Annual Travel Insurance
Annual multi-trip travel insurance covers multiple short-term trips — usually lasting 90 days or less — over the course of a year. Comparatively, long-stay trip insurance protects extended trips to one location and can be ideal for those working or studying abroad, taking a gap year and more.
Annual travel insurance plans can be worth it for people who travel frequently and want affordable, consistent protection throughout the year. It may not be worth it for travelers looking for protections such as CFAR coverage or general trip cancellation benefits.
The average cost of annual trip insurance can range from $155 to $485, based on quotes we gathered for multiple companies. The cost of an annual trip insurance policy will depend on factors such as your chosen plan, provider, coverage limits, add-on coverages and more. The best way to learn how much an annual multi-trip plan will cost you is to obtain free quotes from multiple providers.
Methodology: Our System for Rating Travel Insurance Companies
Our team surveyed dozens of travel insurance providers and created a scoring system to judge each company based on coverage, quality and service. We also collected sample quotes from each company, both over the phone and on the internet, to simulate an authentic customer experience. Here are the factors we take into consideration when rating providers:
- Cost (10%): To determine a baseline average travel insurance cost, we gathered quotes from each travel insurance company based on different traveler profiles. Travel insurance companies at or below our calculated average cost of $221 earn full points in this category. Specifically, we obtained quotes for the following trips
- A 30-year-old couple taking a $5,000 vacation to Mexico.
- A family of four taking an $8,000 vacation to Mexico.
- A 65-year-old couple taking a $7,000 vacation to the United Kingdom.
- A 30-year-old couple taking a $7,000 trip to the United Kingdom.
- A 19-year-old taking a $2,000 trip to France.
- A 27-year-old couple taking a $1,200 trip to Greece.
- A 51-year-old couple taking a $2,000 trip to Spain.
- Plan availability (10%): We look for insurers with a variety of travel insurance plans and the ability to customize a policy with coverage upgrades.
- Coverage details (29%): We review the baseline coverage each company offers in its cheapest comprehensive plan. A provider with robust coverage earns full points, including baggage delay and loss, COVID-19 coverage, emergency evacuation and medical coverage, trip delay and cancellation coverage, and more. Companies also receive points for offering a variety of policy add-ons like accidental death and dismemberment, extreme sports, valuable items, cancel for any reason coverage and more.
- Coverage times and amounts (34%): We compare each company’s waiting periods and maximum reimbursem*nt amounts for baggage, travel and weather delays. Companies that offer customers reimbursem*nt after fewer than 12 hours of delays earn full points in this category. We also reward travel insurance providers that cover more than 100% of trip costs in the event of cancellations or interruptions.
- Company service and reviews (17%): We look for indicators that a company is well-prepared to respond to customer needs. Companies with an established global resource network, 24/7 emergency hotline, mobile app, multiple ways to file a claim and concierge services score higher in this category. We assess reputation by evaluating consumer reviews, third-party financial strength and customer experience ratings, specifically from AM Best and the Better Business Bureau (BBB).
For more information, read our full travel insurance methodology.
A.M. Best Disclaimer
