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What is annual travel insurance?
Annual travel insurance is a type of travel insurance that covers you for multiple trips within a year, rather than needing to buy a policy for each individual trip. It’s ideal if you travel frequently, whether for business or leisure.
The policy covers a range of potential issues, like trip cancellations, medical emergencies, lost luggage, or missed flights. Unlike single-trip insurance, an annual policy covers several trips, but each trip typically has a maximum journey length, like 15, 30, 45, or 60 days. This means it doesn’t cover you for 12 consecutive months or 365 days of continuous travel.
If one of your trips is longer than the allowed time, it won’t be covered. Annual travel insurance is meant for shorter trips throughout the year, making it convenient and cost-effective for frequent travellers.
What does multi-trip travel insurance cover?
Here are some of the key benefits of multi-trip travel insurance:
Overseas medical and dental expenses
Covers you for medical treatment if you get sick or injured abroad. This can include hospital stays, doctor visits, surgeries, or emergency dental care. It ensures you’re protected from high out-of-pocket medical costs when travelling outside Australia.
Amendment or cancellation costs
Reimburses you for expenses if you need to change or cancel your trip. This can include non-refundable flights, hotel bookings, or cruise fares (as an optional extra). So, if you become seriously ill or face a family emergency, you won’t have to worry about losing all of the money you have already spent.
Lost or delayed luggage
Covers you for essential items if your luggage is lost, damaged, stolen or delayed during your trip. This can include personal items like phones, laptops, smartwatches, cameras, tablets, drones, hearing aids, jewellery, and travel documents. If your baggage is delayed for an extended period, the insurance may also cover the cost of replacing essential items until your luggage is returned.
Additional expenses
Helps protect you from unexpected costs that can arise due to a mishap, illness, or issues back home. According to travel insurer, Cover-More, it can reimburse you for extra accommodation or transport costs if your trip is delayed or interrupted. This ensures you're financially protected if things don't go as planned, covering expenses like extra hotel stays, meals, and alternative transport.
Like single trip travel insurance, multi-trip policies may have an excess depending on the benefit and your level of coverage. For example, if you claim for lost luggage and the excess is $100, you’ll pay the first $100, and the insurer will cover the rest, up to the policy limit. Generally, a higher excess means a lower premium, but it also means you’ll pay more if you make a claim.
Annual travel insurance optional extras
When you purchase a multi-trip policy, most insurers offer the option to add the following extras:
Ski/winter sports cover
If you're planning to ski or take part in other winter sports, standard policies may not cover you due to the higher risk of injury. However, you can often add this coverage for an extra cost. Insurers typically offer coverage for either on-piste or off-piste snow sports, so be sure to read the fine print to know exactly what's included.
Cruise cover
This add-on protects you against issues specific to cruising, such as trip cancellations, missed ports, or medical emergencies onboard. Cruise travel insurance can also cover things like lost luggage, sea sickness, shore excursion cancellations, or delays due to bad weather.
Adventure activities
Activities considered risky by insurers, such as bungee jumping or diving, are often excluded from standard policies. However, for an additional cost, you may be able to add coverage for certain activities to suit your multi-trip policy.
Motorcycle/moped riding cover
Due to the increased risk, many annual travel insurance policies don't cover motorcycle or moped riding overseas. However, if you plan to ride during any of your trips and want coverage, you can often add it to your policy for an additional premium. This optional extra may be ideal for travellers heading to destinations like Bali, for instance.
Increased cover for individual items
Most multi-trip policies set limits on what you can claim per item if it’s lost, stolen, or damaged. If you’re traveling with valuable items like jewellery, you can choose to insure them for a higher amount to cover the full cost of replacement.
Rental vehicle insurance excess
This coverage is included in some policies by default, but you may need to opt in for it with others. It’s designed to cover the excess amount (which can often be thousands of dollars) that typically applies to the basic coverage provided by your car rental company when you hire a vehicle.
How much does annual travel insurance cost?
The cost of annual travel insurance varies depending on factors such as the level of coverage, your age, destination, the duration of each trip, and the number of travellers. Basic policies will be the most affordable option, while comprehensive coverage tends to be more expensive.
To reduce costs, it’s essential to compare policies from different providers and assess your specific needs. Opting for a basic or mid-range policy can lower premiums, especially if you don't need extensive coverage. Additionally, any optional extras or pre-existing medical conditions can also influence the price.
Annual travel insurance cost example
The table below compares the cost of international comprehensive annual travel insurance policies from a selection of leading providers in Australia. While we have done our best to compare the same levels of cover, some price variations may reflect varying levels of cover.
Insurer | 1Cover |
|---|---|
Comprehensive international multi-trip cover | $525.24 |
Notable benefits |
|
Insurer | Budget Direct |
Comprehensive international multi-trip cover | $607.91 |
Notable benefits |
|
Insurer | Cover-More (International Comprehensive +) |
Comprehensive international multi-trip cover | $676.00 |
Notable benefits |
|
Insurer | FastCover |
Comprehensive international multi-trip cover | $818.90 |
Notable benefits |
|
Insurer | Worldcare |
Comprehensive international multi-trip cover | $1,302.65 |
Notable benefits |
|
| Insurer | Comprehensive international multi-trip cover | Notable benefits |
|---|---|---|
1Cover | $525.24 |
|
Budget Direct | $607.91 |
|
Cover-More (International Comprehensive +) | $676.00 |
|
FastCover | $818.90 |
|
Worldcare | $1,302.65 |
|
Annual travel insurance pros and cons
Pros
- Coverage for multiple trips over a year means you don’t need to buy insurance every time you travel, saving time and effort
- If you travel frequently, an annual policy can be cheaper than purchasing separate insurance for each trip
- Can cover both leisure and business trips, so you don’t have to worry about taking out different policies for each type of travel
Cons
- Policies limit each trip duration (e.g. 30 or 45 days), so longer travels might require additional coverage
- While it can save you money in the long run, annual travel insurance requires a larger upfront payment, which may not suit your budget
- Requires careful planning and a commitment to taking multiple trips within 12 months, which may not be ideal if your travel plans are uncertain
How to get the best yearly travel insurance
Below is a step-by-step breakdown of how to get a good deal on annual travel insurance:
1
Research insurance providers
Search for insurers who offer yearly travel insurance. Most insurance providers in Australia offer comprehensive and basic coverage on multi-trip policies for frequent travellers. Then compare policies from different providers. Look at the benefit limits, exclusions, excess, and other details to find the best option for your needs.
2
Read the Product Disclosure Statement (PDS)
Carefully review each policy’s PDS as it’ll outline the details of coverage and any limitations. This is a crucial step as this document usually contains all the important information about the policy and what’s included. You’re better off reading it before purchasing a policy.
3
Provide details about you and your trip
You’ll need to tell the insurer where you’re going, when you depart, the length of your trip, and the age of each traveller.
4
Review the quotes
Based on your personal details and trip information, request quotes from different insurers. This will give you an estimate of the premiums and help you find the best value for the coverage you need.
5
Choose a policy
After reviewing the quotes, coverage options, and PDS documents, select the policy that best suits your travel plans and budget. This is usually where you’ll be asked about any optional extras you may like to add, such as cover for cruises or snow sports.
6
Purchase the policy
Once you’ve made your choice, you can purchase the policy online. Many insurers allow you to buy the policy instantly, and you’ll typically receive your policy documents by email. Double check all the information is correct before you travel.
Are annual travel insurance policies worth it?
Annual travel insurance policies can be worth it if you plan on taking multiple trips throughout the year, as they provide convenience and often work out cheaper than buying separate insurance for each trip.
These policies offer coverage for all your travels within a 12-month period (subject to maximum trip length), which is especially beneficial if you’re frequently travelling for work, leisure, or family commitments.
For example, a business professional who travels regularly for work may find it easier and more cost-effective to have an annual policy that covers all their trips, rather than purchasing a new policy each time they fly. Similarly, someone who enjoys taking several holidays a year — such as a retiree who goes on multiple overseas trips or a family that travels for both summer and winter breaks — may well save money, in addition to avoiding the hassle of buying new coverage for each trip.
If you're unsure about your travel plans for the year, single-trip travel insurance may be a better option. This is because annual travel insurance tends to be more expensive, and if your plans are uncertain, committing to a yearly policy may not be the most practical choice.
