Helpful Guide to Annual Travel Insurance (Is it really worth it?)

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Yes. Epic year ahead. You know it as you already have atleast three opportunities to travel.

School reunion #ThisCouldBeFun. Beachside cabanas in the Bahamas #Chillax. And a very important business presentation in Tokyo #TackOnAFewExtraDays

Three very different travel destinations and experiences, yet equally worth pursuing.

You’re going to do it. Because why not? Life is meant to be lived glamorously. Who knows you could even fit in a couple more vacations throughout the year. Anything is possible right?

Exploring San Francisco with piece of mind with our annual travel insurance policy
We loved our 7 day trip to San Francisco

The last thing you want to do is race to the airport for your trip and forget something (hopefully not your passport).

So much to prepare, so little time to execute.

Or worse: Be so unprepared that you waste a lot of money on expenses that could be streamlined – like annual travel insurance or single-trip travel insurance.

You definitely don’t want to forget to buy travel insurance and without proper research you won’t realize that three separate insurance policies can add up to be way more than just an annual travel insurance policy!

Some of these little things we don’t think about becuase we’re too busy taking care of the bigger things – like what dress to where to your reunion – you really want your old classmates to see how much you’re kicking it!

Plus, you want to just travel more right?

So, an annual travel insurance policy will give you room to add on an extra vacation or two completley covered.

If this sounds like you – a travel addict always planning multiple trips – then this guide to annual travel insurance is for you!

Snorkeling in Hawaii
Is hawaii on your bucket list?

We’ll walk you through what it is, how it benefits you (a few possible downsides) and a handy checklist to help you make the right decision.

Note:

We are paid ambassadors for Allianz Travel Insurance and so we get to learn more about their policies and services so we can share it with you.

What is Annual Travel Insurance (or multi-trip travel insurance?)

Annual travel insurance plans, also known as multi-trip insurance, is a gift for frequent travelers throughout the year.

It’s pretty much a set and forget travel accessory, or necessity. You purchase one insurance policy, which covers you for all trips you make during the yearly term of the policy.

Multi trip policies can be taken out at any time of the year. The 12-month period begins when you pay for the policy.

Benefits to Annual Travel Insurance

You Can Save Money with An Annual Insurance Plan

As mentioned, if you have travel plans for three or more separate trips in a year, you can cover them all for less with an annual travel insurance plan.

Most annual plans offer a year’s worth of protection for health, property and trip costs.

Look for a travel insurance policy that offers emergency medical coverage, coverage in case of illness or death of a family member and travel delay coverage, among other things.

Don’t forget that all of these can be counted as a trip and covered under one price: Big vacations, weekend getaways, road trips, business travel trips.

Get a quote for single-trip insurance for each planned trip, then compare the total to the cost of an annual insurance plan.

Allianz Travel offers different levels of multi-trip insurance, from the affordable AllTrips Basic to the AllTrips Premier Plan, which can cover your whole household.

I’ll share more about them below.

KISS – Save Yourself the Hassle

Keep It Simple Smart Traveler.

It makes life much easier if you buy a single, multi-trip policy that covers you all year, instead of buying a new plan for every vacation you take.

This is by far my favorite thing about my Allianz annual travel insurance policy and would even put this above saving money.

I have messed up with travel insurance before by not being organized enough and heading out for a vacation without it. Big mistake! $800 hospital visit later! #NeverAgain

My multi-trip policy keeps me safe from the crazy chaos of my life.

I can pack my suitcase tonight, fly somewhere exotic tomorrow and know that I am covered.

One less thing to research and manage is a lifesaver, especially if you travel with kids. (Yes. These policies work with families too! See below).

Life Saver for Business Travelers

You know it. You need to to be on time for your business meetings and have your luggage arrive.

But often that is out of your control. Business travelers do not want to travel for business and then lose money on their business trip.

Protect yourself with a multi-trip insurance policy that’s designed for business travel and understands your specific travel needs.

Look for a plan that offers coverage for special situations, such as:

  • business equipment coverage
  • rental car collision coverage
  • and business concierge assistance.

Families are Covered

Guide to annual travel insurance plans
Loved our visit to Monument Valley in Utah

One of the biggest reasons an Allianz annual travel insurance plan can work for you is that it covers you entire family!

No separate policies or registrations required.

The AllTrips Premier plan can cover you and your household for all the trips you take in 365 days, whether you travel together or separately.

So if I head to a conference to speak on my own, our AllTrips policy covers me, even if the kids don’t come with me.

Long Coverage Advantage Window

Here’s a benefit to annual travel insurance I had not even thought of (and one travel planners will love)!

As an ambassador for Allianz Travel Insurance I get to learn about these hidden benefits of travel insurance I’ve never bothered to find out otherwise. That means I can help you make more informed and empowered choices.

Most people purchase travel insurance as a last minute thing the night before you fly out.

Did you know it’s better to actually purchase insurance at the very beginning of your booking cycle – as soon as you book your flights or accommodation!

Because if anything happens to you between purchasing the plan, booking your trip and departure and you need trip cancellations or delays, you will be covered.

Trip cancellation benefits begin on your plan’s effective date, as long as they receive your premium before you cancel your trip or make a claim.

Not if you get it the evening before. You are only covered from the purchase date!

As an annual insurance policy covers you all year, you get that longer coverage window by default.

Rental Car Coverage

Again, one less thing to worry about.

A rental car company’s collision loss/damage insurance can often double the price of your daily rental.

No need to worry about that with an annual policy. Grab the keys and rev the engines.

AllTrips plans has Rental Car Damage Protector. This benefit can cover costs if a car you’re renting is stolen or is damaged in an accident or while it’s left unattended (not available to residents of all states. Be sure to read plans and policies carefully).

Downsides to Annual Travel Insurance

Keep in mind that most annual trip insurance plans have a coverage limit for trip cancellations and trip interruptions.

Limited Trip Cancellations and Interruptions

“Oh, check the Allianz app.” I said to Craig on the phone.

“If your flight is delayed for a few hours, they’ll automatically send you $100 and you can go buy lunch while you wait for the flight.”

He and the girls were on the way to Orlando, and their flight was delayed by two hours.

“Oh hang on. I don’t think that works for us as we have an annual policy.”

We checked. Travel delays are covered with Allianz Travel, but for six hours or more. Not the three hours that you get on a single trip policy (check policy as that time can vary).

And so therein lies a downside to annual travel insurance. No beer or wine to appease your distress over flights delayed for less than six hours.

Some travel insurance providers won’t cover these at all on a multi-trip policy.

Why is that so?

Each trip you take will cost a different amount. You mostly likely won’t know all the costs when you purchase your annual plans, and won’t even be asked the trip value like you do with a single policy.

This unknown is why there is limited coverage for trip cancellation and coverage.

It may only be available for a flat trip cost amount, and/or, it may only apply to a single trip during the annual period.

Consider how much you tend to spend on trips and whether you can carry the costs of trip cancellations.

For us in our travel blogging business, we road trip a lot, or use points, or work on campaigns, so our potential loss from a trip cancellation, or delay is not as much.

Plus, we book last minute so pretty much know we’re going and can foresee most potential trip cancellation issues. (except that one time Hurricane Irma arrived while we were on our cruise. Thankfully, our insurance covered our costs for trip interupption and getting us home safely.)

With Allianz AllTrips policies, there is coverage for trip cancellation and interruptions of various amounts depending on your policy.

The only exception is the AllTrips Basic, which as the name suggests, does not cover for trip cancellation or interruptions (but does for delays).

As each policy varies, it’s essential you carefully read your documents so you have no surprises – only good ones allowed when you travel.

Limitations for Long-Term Travel

With a multitrip policy, there are limitations for how long each of your trips can be (average is 70-90 days).

Ensure you read your policy so you can plan accordingly and don’t get caught out.

You will have to return to your home base after this period for the policy to remain in effect. So it’s not really the option for someone who wants to travel for a year or more.

Who Should Buy Annual Travel Insurance?

Annual travel insurance tips
Ice skating in New York City at Christmas

This travel insurance policy is all about frequent travelers. Let’s list a couple of scenarios:

  • Travel Addicts – All your resources go into planning and enjoying multiple trips each year. You can’t breathe properly unless you travel. This policy is for those who commit and follow through.
  • Business Travelers – You do not have the time to research and purchase a new travel insurance policy for each trip you make. Especially, when you’re called to NYC for that surprise meeting with your potential dream client. Keeping your equipment and having your business needs catered to is a priority.
  • Journalists, Bloggers and Writers: Don’t get caught out by that golden last minute travel opportunity. Free space up in your brain for your creative output, ensuring that you are protected each time you head off on an exciting adventure.
  • Retirees Living the Dream. If you are retired, active and healthy, an annual insurance policy will give you more freedom to enjoy that lifestyle you’ve worked hard for all your life. Relax and go travel.
  • Families Like Us: We travel a lot with our kids. It’s a mixed bag of work and pleasure. Plus, we take individual trips,business trips, couples trips, family trips, and single parent with kids trips. I love how the annual travel insurance policy covers all of us no matter who is traveling where and with who. Parents, you know one less thing to worry about is the DREAM.

What Does Annual Travel Insurance Cost?

I want to give you some annual travel insurance comparison costs, but quick CAVEAT: they vary so much depending on your life circumstances and policy chosen.

Of course, I have done these quote comparisons with the Allianz Annual Travel insurance policies.

I did a quick quote comparison for you:

For a one person plan aged 40

  • AllTrips Basic: $135
  • AllTrips Prime: $275
  • AllTrips Premier: $475
  • AllTrips Executive: $500

For a couple, aged 40 & 42

  • AllTrips Basic: $270
  • AllTrips Premier: $475
  • AllTrips Prime: $550
  • AllTrips Executive: $1,000

For a family of four (2 kids under 12)

  • AllTrips Basic: $540
  • AllTrips Premier: $475
  • AllTrips Prime: $1,100
  • AllTrips Executive: $2,000

Remembering the AllTrips Premier policies is specifically for families and households hence the same price for each scenario.

Below are comparisons to a single trip policy. Again, you must search a quote that suits your travel scenario. There are a lot of factors involved.

This is my search using specific parameters. For each one I changed the variables of number of travelers and trip costs to give you the best overview and accurate cost comparison.

See all policies here. 

Single, visiting the United Kingdom, 2 weeks, $5,000 trip cost

  • OneTrip Basic: $190
  • OneTrip Prime: $237
  • OneTrip Premier: $285

Couples, visiting the UK, 2 weeks, $5,000/ $8,000 trip cost

  • OneTrip Basic: $192/ $305
  • OneTrip Prime: $247 / $386
  • OneTrip Premier: $329 / $473

Family (2+2), visiting the UK, 2 weeks, $5,000/ $8,000/ $12,000 trip cost

  • OneTrip Basic: $190
  • OneTrip Prime: $163/$205/ $290
  • OneTrip Premier: $241/ $283 / $376

Hopefully, that can give you a quick glance over the cost effectiveness of an annual travel insurance policy and as to whether it is best suited to your particular travel scenario over the length of a year.

At first we were a little confused when researching our annual policy and wanted to ensure it was adequate for our needs.

Then we called the Allianz customer service who were excellent in walking us through it. They went over the policies and gave a suggestion as to what best suited our family and why.

We were very happy with the customer service given. As mentioned we are ambassadors, but their customer service team does not know that when we call.

What Does Annual Travel Insurance Cover?

What Does Annual Travel Insurance Cover?

No matter what travel insurance provider you choose, be sure to understand what is included in your annual plan.

I will share with you what is covered in the various Allianz annual insurance plans.

AllTrips Basic

AllTrips Basic is designed for the traveler who does not need annual travel insurance with trip cancellation!

For an entire year, it can give you emergency medical care and emergency medical transportation protection while traveling—which is critical overseas where your personal health insurance may not work.

Other benefits include:

  • trip delay protection
  • baggage coverage
  • rental car insurance
  • and a 24/7 assistance hotline to help with travel-related emergencies

Learn more here.

AllTrips Prime

AllTrips Prime plan gives you affordable protection for a full year worth of trips, including coverage for trip cancellation ($2,000 annual maximum) and trip interruption. Plus:

  • emergency medical
  • lost, stolen or delayed baggage
  • and even rental car collision/loss damage insurance

Learn more here.

AllTrips Premier

The AllTrips Premier plan provides the amenities of an entire year of worldwide travel protection and concierge service.

It covers you and your household, whether you’re traveling separately or together. Three levels of annual trip cancellation are offered up to a maximum of $15,000. This is the policy we have.

Learn more here.

AllTrips Executive

The AllTrips Executive plan is suitable for the frequent business traveler who is interested in higher trip cancellation and interruption limits (tiered levels up to $10,000 annual maximum). Plus:

  • lost, stolen or delayed baggage
  • and business equipment rental coverage

Learn more here.

Please see each plan for full details. Benefits/Coverage may vary by state, and sublimits may apply.

Checklist to Help You Decide If Annual Travel Insurance Is For You

  1. Do you plan on going on three or more trips in a year?
  2. Are you busy and somtimes forgetful and want peace of mind automated and taken care of?
  3. Are you a business traveler, or digital nomad?
  4. Do you like to be protected for those longer periods of coverage?
  5. Have you reviewed the policies for different available travel insurance plans?
  6. Have you gotten a quote for various policies and companies to compare savings?
  7. Have you read your plan documents?

Allianz TravelSmart App

If you take an AllTrips policy out with Allianz Travel insurance, they have a handy TravelSmart app to help you monitor and track your travels.

You can read more about it in our other post we wrote about Allianz SmartBenefits and Allianz Global Assistance.

About to take that trip and worried whether you are still covered or not? (we get it, hard to remember things).

Open the app and you’ll see straight away. Basically your policy details will be in the app, which you can check at any time. Which is what Craig did when he was delayed at the airport.

You can also use it for important travel assistance scenarios like track flights, find important emergency details for your country of travel, and file claims straight from the app.

This post is sponsored by our partner Allianz Travel (AGA Service Company) and we have received financial compensation as ambassadors.

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Have you used an annual travel insurance policy before? What was the biggest benefit to you? I hope you find our Allianz annual travel insurance reviews helpful.