Annual Travel Insurance

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?

While travel insurance is a consideration for every person that takes an overseas holiday, annual travel insurance may be 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 may be able to 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. You never know when an insurable event may occur such as missing luggage or cancelled flights.. Put simply, you may want to consider taking out 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 can cover more than just injuries and illnesses. Things like stolen or lost baggage, and cancelled flights could 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, here are some of the 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. 

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 days¹. 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 vacation are covered by insurance. Speak to your provider to find out about the guidelines and restrictions of your policy. 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, your policy may exclude cover for the pre-existing condition or may require you 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 options 

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 from a range of policies online today with iSelect.

^{Source:
1 smartraveller.gov.au - CHOICE travel insurance buying guide}