What is Annual Travel Insurance?

Annual travel insurance is a type of insurance policy that covers unexpected traveling fees in one year increments. This can be a good option for people that travel frequently for work, or for those planning to take multiple vacations in a one year period. Annual travel insurance is available from many different vendors; comparison shopping can help determine the best coverage at the best price.

The traveler abroad can run into all sorts of problems regularly covered by insurance at home. Medical emergencies, trip cancellations, natural disasters, and lost or stolen possessions can quickly turn into major hassles without some kind of insurance. Annual travel insurance may cover a variety of expenses, depending on the plan purchased; in general, more services will equal a higher premium.

Several factors can influence the cost of annual travel insurance. Older travelers may find rates a bit higher, since insurance companies tend to assume that the risk of medical issues may be higher. People traveling to developing nations or during monsoon or hurricane season may also run into rate hikes. Visiting nations or regions that are under adverse travel advisories for any reason may also bring a higher premium.

The services offered by an annual travel insurance policy can be quite extensive. Cancellations of many types, including due to job loss, death in the family, terrorist attacks or natural disasters at the point of travel, are often included. Some plans may cover fees generated by missing connecting flights between destinations. Theft coverage is sometimes provided in the form of emergency funds or replacement traveler's checks and credit cards. Collision coverage and roadside service for car travel are common features.

Like most forms of insurance, annual travel insurance policies may include a set deductible. This amount determines how much the traveler must cover before the benefits of the plan kick in. Deductibles usually decrease with higher premiums; on a basic emergency travel policy, the deductible may be as high as $50,000 US Dollars (USD). Comprehensive plans, which may carry monthly premiums of several hundred USD, may not have a deductible at all.

A travel insurance plan can cover more than one traveler. This option can help families that travel together by allowing the entire group coverage under one plan. Adding young children or teenagers to a plan usually costs far less than adding additional adults; if a family is traveling with adult children, it may be more economical to buy individual plans.