Frequently Asked Questions About Annual Travel Insurance
- What is trip insurance?
- What is annual travel insurance?
- How often would I have to travel to save money with an annual policy vs. per-trip insurance?
- What does it cover?
- I already have health insurance. Why would I want a policy that includes medical coverage?
- What's not included?
What is trip insurance?
Travel insurance provides you with financial protection if something unexpected causes delay, cancellation, or interruption of your trip. The specific type and levels of coverage vary from policy to policy, but most include one or more of the following categories:
- Trip cancellation, interruption and delay coverage and assistance
- Health and medical coverage and 24-hour assistance
- Property protection (such as baggage loss)
- 24-hour concierge services
For a more information on specific coverages, view our detailed descriptions.
What is annual travel insurance?
Annual travel insurance is designed to meet the needs of frequent travelers and covers multiple trips for the whole year. Unlike per-trip insurance, which is based on a percentage of the overall trip cost, annual travel insurance generally is based on a flat annual rate. Not only is it more cost effective, it also ensures that you are covered whenever you travel throughout the year—even if the trip is unplanned or last-minute.
How often would I have to travel to save money with an annual policy vs. per-trip insurance?
If you plan to travel more than once within a calendar year, it may make more financial sense to purchase an annual policy than per-trip insurance. Of course, the more you travel, the more you with save with annual travel insurance.
What does it cover?
Individual annual travel insurance policies vary and come in three different varieties:
- Multi-benefit plans with emergency medical coverage
- Multi-benefit plans without trip cancellation coverage
- Full benefit plans including trip cancellation coverage and concierge services.
Browse a range of annual travel insurance products.
I already have health insurance. Why would I want a policy that includes medical coverage?
While your existing health insurance may cover some medical expenses you incur while traveling, there are many cases when it will not. Many U.S. healthcare plans do not provide coverage for members when they are more than 100 miles from home or traveling overseas. This includes travel on international waters or air space.
Some premium credit cards provide medical travel benefits, but they typically lack coverage for medical evacuation and emergency medical transportation, which are associated with some of the highest healthcare expenses for travelers. In fact, it can cost $100,000 or more for these services depending where you are, where you need to go, and what kind of professional staff and equipment need to accompany you. Plus, emergency medical evacuation providers usually require up-front payment, which can take critical time and effort to secure if you don’t have the proper insurance.
What's not included?
Like all insurance policies, annual travel insurance has its share of fine print. In most cases, the coverage you purchase applies only for specific, designated reasons or circumstances. For example, trip cancellation insurance usually covers many issues, like illness or death of the insured, a family member or traveling companion; destruction the insured’s home or destination hotel by natural disaster; terrorism in the destination city, etc. But if you have to cancel for a reason that isn’t specifically mentioned in your policy, then you may not be eligible for reimbursement. Be sure to read your policy carefully and ask your provider if you have any questions.
