Annual Travel Insurance

If you’re a frequent flyer for business, or you just can’t seem to cure that travel bug, taking out annual travel insurance could be your ticket to seeing the world, backed by peace-of-mind.

Annual travel insurance, aka ‘multi-trip’ travel insurance, could be a great option for those who are always on the move, potentially saving you both time and money. This type of insurance is available for those who take multiple trips throughout the year, and differs from year-long single-trip policies, which covers you for one long trip away from home.

Who could benefit from annual travel insurance?

A 2016 survey found that while 12% of Australians surveyed took out a multi-trip travel policy before their trip, only around 6% took out annual travel insurance on their last overseas trip¹. While travel insurance is a consideration for every person that takes an overseas holiday, annual travel insurance is an option for those who travel frequently, whether for business or leisure, domestically, or internationally.

Even if you don’t yet know exactly which countries you’ll be visiting, you can choose worldwide coverage. That way, you can fly to any destination at a moment’s notice with peace of mind.

Why should you get travel insurance?

Hopefully you won’t need to claim on your travel insurance, but it’s always best to be prepared, especially when you consider that ¼ of Australians experienced an insurable event on their last holiday abroad¹. Put simply, it’s important to purchase insurance everytime you go overseas, and there are good reasons why:

Your medical bills won’t be covered otherwise:

The Australian government doesn’t pay medical bills for accidents or injuries that happen in a different country. Without travel insurance, you could end up paying thousands in medical expenses and flights back home.

You never know what could go wrong:

Assuming bad things won’t happen on your holiday is the wrong attitude – and travel insurance covers more than just injuries and illnesses. Things like stolen or lost baggage, and cancelled flights can cost you if you don’t have insurance.

It’s often mandatory:

You won’t be able to get past the border of certain countries without the appropriate visas and travel insurance. You should view insurance as being as necessary as your passport in Thailand, Cuba and many other countries. Conduct some research around your destination to find out more.

How does it work?

Annual travel insurance policies come in two types:

• Domestic policies: This only covers travel throughout Australia – however, you may have to be a certain minimum distance from home for it to apply. Generally, a domestic policy includes a level of cover for luggage, belongings and trip cancellation but excludes medical.
• International policies: This is for worldwide travel or travel to countries in specific regions. Most international policies will provide you with a level of cover for emergency medical expenses, evacuation, loss of luggage and personal belongings, trip cancellation, and third party personal liability.*

What are the benefits of annual travel insurance?

If you know you’ll be taking multiple trips over the next 12 months, there can be benefits to taking out an annual travel insurance policy that protects against any nasty surprises:

• Convenience: For starters, buying an annual policy is faster and more convenient than organising separate policies for each trip. All it takes is one single transaction and you’re set for 12 months.
• Peace of mind: You’ll have peace of mind knowing you’re covered for the entire year, for your policy inclusions. Simply pay once and don’t worry about it again.
• Price: Taking out multi-trip insurance may work out to be much cheaper than arranging separate cover for each individual holiday.
• No need to pre-plan: When taking out annual insurance, you don’t need to provide details of all trips you’re taking that year. Just take out your policy, jet off, and enjoy yourself! There’s also no need to let your insurer know everytime you go away.

Are there any limits I should be aware of?

Remember that some multi-trip policies impose restrictions on the length you’re able to be on each trip, which could vary from 15-365 days². This duration is generally allocated when you sign up. The good news is there are usually no limits on the number of trips you can take throughout the year, however this can change per policy.

From time-to-time, insurers may only cover you for just business or just leisure trips, though there’s often no difference. Do some research around each plan to guarantee you’ll be covered for everything you may need.

Additionally, not all activities you undertake on holiday are covered by insurance. Speak to your provider to find out about the guidelines and restrictions of your plan. Be sure you understand whether you’re covered for any of the following common activities and events:

• Water sports
• Sporting activities
• Riding motorcycles, mopeds or scooters
• Adventurous tours or sports
• Riding or interacting with animals
• Bungee jumping
• Skydiving

If you have certain pre-existing medical conditions, you may need to pay an additional fee. Most insurers will be able to provide a list of the illnesses that do and do not require this fee. If you develop an illness after taking out the insurance, be sure to let your insurer know.

Before deciding on a policy ensure you consider the Product Disclosure Statement which provides information about policy inclusions and limitations.

Compare annual travel insurance with iSelect

Every policy offers different types of coverage and excess levels, so carefully review the terms and conditions of every policy you are considering. Compare travel policies online today with iSelect.

We do not compare all travel insurance providers or policies in the market. Not all policies are available at all times, through all channels. Click here to view our range of providers.

iSelect General Pty Limited ABN 90 131 798 126, AFS Licence Number: 334115. Any advice provided by iSelect is of a general nature and does not take into account your objectives, financial situation or needs. You need to consider the appropriateness of any information or general advice we give you, having regard to your personal situation, before acting on our advice or purchasing any product. You should consider iSelect’s Financial Services Guide which provides information about our services and your rights as a client of iSelect. We receive commission for each product sold.

Sources:
1. https://smartraveller.gov.au/guide/all-travellers/insurance/Documents/survey-travel-insurance-behaviour-web.pdf
2. https://smartraveller.gov.au/guide/all-travellers/insurance/Pages/choice-travel-insurance-buying-guide.aspx