Is an annual travel insurance policy right for you?
If you’ve got two or more trips planned this year, consider purchasing an annual travel insurance policy. One policy gets you 12 months of coverage on an unlimited number of trips, giving you one less thing to worry about before takeoff.
Depending on the package selected and the trip duration, consumers typically see savings after two or three trips. To decide whether an annual policy suits your needs, consider the following questions:
How Many Trips Will You Be Taking in the Next Twelve Months?
Annual policies start the first day of your first trip and last twelve whole months, so if you’ve got two or more trips planned, chances are an annual policy will be a good fit. If you’re unsure, shop the rates trip-by-trip to determine whether an annual premium is cost effective.
Remember that it’s important to have travel insurance for trips within Canada as well as international travel. Most provincial medical plans cover less than 10% of medical expenses incurred outside their home province. An all-encompassing annual plan means expenses not covered by provincial plans (i.e., emergency room fees, air evacuations, ambulance fees, and prescriptions) will be looked after.
What Are Your Needs?
Insurance providers offer a range of annual policies, from basic emergency medical to all-inclusive. The packages differ greatly in cost, so read the fine print to determine which policy best suits your needs.
Emergency medical packages cover a wide range of medical expenses, from paramedic services and ambulance transportation to emergency dental treatment, evacuations and hospitalization fees. Depending on the policy, meals and accommodations for travel companions may also be covered in cases of emergency. Those aged over 55, or patients with pre-existing conditions can expect higher premiums.
Travelers looking for more than just medical can opt for hybrid plans with emergency medical, trip cancellation, and baggage loss insurance. If you plan to travel with precious cargo or anticipate frequent itinerary changes, you may prefer these all-inclusive policies.
How Many Days Do You Plan to Be Away?
Rates for annual travel policies also depend on how long you plan to be away. Although these annual policies boast an unlimited number of trips per year, policyholders set a limit of days per trip.
If your travel calendar features frequent short trips, a 4-day maximum may be enough. Multiple longer trips, spanning weeks at a time, may warrant a 23- or 30-day maximum. As a rule of thumb, the higher the maximum, the higher the premium.
To determine your maximum, choose the option that best suits most of your trips. Planning a two-week vacation on a 4-day policy? Most insurers offer top-ups to extend your coverage for longer trips. Paying for these top-ups once or twice a year is far more cost-effective than paying for a higher yearly maximum.
If you’re planning a longer trip involving consecutive months away, a backpacker travel insurance policy may be a better fit. Although not offered by all insurance providers, these policies are meant for extended stays and also often include coverage for extreme sports and activities excluded from other insurance policies.
Whether you’re traveling for work or for pleasure, an annual travel insurance policy will give you peace of mind while you’re away. Last minute vacations and business trips are a breeze, with one less thing to worry about on your pre-departure to-do list.
Make sure to compare travel insurance quotes online, or speak to a broker at 1-855-467-4868.