Annual Travel Insurance: Is a Yearly Plan Worth It?

Annual travel insurance is a single policy that covers every trip you take in a 12 month period, as long as each trip stays within a set number of days. It is usually worth it when the annual premium is lower than the total of the single trip policies you would otherwise buy, which for many travelers happens at around two or three international trips a year. It is a poor fit for one long trip or for trips with large prepaid costs.

Key facts at a glance

• WorldTrips describes its Atlas MultiTrip plan as 12 months of cover for unlimited international trips, with each trip covered for up to 30 or 45 days depending on the option chosen at purchase.
• According to WorldTrips, Atlas MultiTrip has an overall medical maximum of up to $1,000,000 and a $250 deductible per covered trip.
• WorldTrips states that trip cancellation is not included in Atlas MultiTrip. Annual travel medical plans cover health emergencies, not the cost of the trip.
• WorldTrips suggests an annual plan for travelers who take two or more international trips a year.
• Under Article 15 of the EU Visa Code, applicants for a multiple entry Schengen visa must prove insurance for their first intended visit and sign a statement that they know they need insurance for later stays.
• Ombrela's quote pages compare single period travel medical plans. Annual multi trip policies are not among the plans it compares.

What is annual travel insurance and how does it work?

You pay one premium and choose a start date. For the next 12 months, each trip outside your home country is covered automatically, without a new application. You do not have to tell the insurer your dates in advance.

There are two broad types, and they are easy to confuse:

• Annual travel medical plans. These cover emergency treatment, medical evacuation and a few travel benefits such as lost luggage. Atlas MultiTrip from WorldTrips and Patriot Multi-Trip from IMG are examples. They do not reimburse canceled trips.
• Annual trip insurance plans. Sold mainly to US residents, these add trip cancellation and interruption benefits. The cancellation limit is often a fixed amount for the policy, which may be shared across the year instead of renewing for each trip.

Annual travel medical plans also tend to assume you have health insurance at home. Sellers of both the WorldTrips and IMG annual plans describe a requirement to hold primary medical coverage, and upper age limits apply. Confirm the current eligibility rules in the carrier's own document before you rely on one.

How do you calculate the break even point?

The calculation takes five minutes and uses your own numbers.

• Step 1: list every international trip you expect in the next 12 months, with approximate dates and length in days.
• Step 2: get a single trip quote for each one, using the same medical maximum and deductible each time.
• Step 3: add those quotes together. This is your single trip total.
• Step 4: get an annual quote with a comparable medical maximum and a per trip day limit that fits your longest trip.
• Step 5: divide the annual premium by your average single trip premium. The result is the number of trips at which the annual plan starts to cost less.

Here is an illustration with invented numbers, not real prices. Suppose your single trip quotes average 60 dollars and an annual plan is quoted at 200 dollars. Dividing 200 by 60 gives 3.3, so the annual plan costs less from the fourth trip onward. With three trips you would pay 180 dollars buying separately, so single trip policies win. With five trips you would pay 300 dollars, so the annual plan wins by 100 dollars.

Premiums depend on age, trip length, destination, policy maximum and deductible, so your own break even point may be lower or higher. Ombrela's cost calculator gives you a quick estimate for a single trip, which you can use for step 2.

What is the per trip day limit and why does it matter?

Every annual plan caps the length of each individual trip. This is the single most important term to check, because cover simply stops when a trip runs past it.

On Atlas MultiTrip you choose a 30 day or 45 day limit when you buy, according to WorldTrips. Sellers of IMG's Patriot Multi-Trip describe the same two options, which you should confirm with IMG before buying. Annual trip insurance plans set their own limits, which vary by insurer and plan tier.

Three points follow from this:

• The year is not one long policy. A 45 day limit does not cover a three month stay, even though the policy lasts 12 months.
• Day counts usually start when you leave your home country and reset when you return.
• If one trip on your list is longer than the limit, insure that trip separately with a single trip policy and check whether an annual plan still pays off for the rest.

Who is annual travel insurance worth it for?

It suits a recognizable group of travelers:

• Frequent business travelers who take short trips at short notice and do not want to buy a policy each time. If your employer already insures work travel, check whether that cover extends to personal trips. Our guide to business travel insurance explains what company policies usually include.
• Frequent leisure travelers who take several short international trips a year, such as long weekends abroad or regular visits to family overseas.
• Travelers with mostly refundable bookings, or bookings paid with points, who mainly want medical and evacuation cover.

A convenience benefit is easy to overlook. With an annual plan, a trip booked on Monday for Thursday is already insured.

When is a single trip policy the better choice?

Single trip cover is usually better in four situations.

• You take one or two trips a year. The math rarely favors an annual plan.
• One trip is long. Study abroad, extended family visits and sabbaticals exceed per trip limits.
• A trip has large prepaid costs. A cruise or guided tour may exceed an annual plan's cancellation limit, or the plan may have no cancellation benefit at all. See our guide to trip cancellation insurance.
• You are visiting the United States from abroad. Medical costs there are high, and a visitor medical plan with a policy maximum chosen for that trip is a closer fit than a general annual plan.

Can annual travel insurance be used for a multiple entry Schengen visa?

It can, if the policy meets the Schengen rules: at least EUR 30,000 of medical cover, valid in all 29 Schengen countries, including repatriation, and with a certificate the consulate accepts. The per trip day limit must also be at least as long as each stay you plan, and Schengen stays can run up to 90 days in any 180 day period.

The Visa Code does not require one policy for the whole visa. Article 15 asks multiple entry applicants to prove insurance for the first intended visit and to sign a statement acknowledging that they need insurance for later stays. Buying a compliant policy for each visit is therefore acceptable, and it is what many travelers do.

One caution: a single period travel medical policy generally ends when you return home, so buying 365 days of cover is not the same as holding an annual multi trip plan. Our guide to Schengen insurance for multiple entry visas goes through the options, and you can compare compliant plans for your first visit on the Schengen insurance quote page.

To run the numbers yourself, download our free Annual vs Single Trip Calculator worksheet below. It walks you through your trips, the single trip total, the day limit check and the break even result.

How to get covered

If the worksheet favors an annual plan, buy it directly from a carrier that offers one, and confirm the per trip limit, the eligibility rules and whether the United States is included. Ombrela does not compare annual multi trip policies.

If it favors single trip cover, or if one trip on your list is too long or too costly for an annual plan, compare single trip travel medical plans on Ombrela. The plan finder matches plans to your age, destination and country of residence, and shows which ones are not available to residents of your country.

Frequently Asked Questions

How many trips make annual travel insurance worth it?

There is no fixed number. Divide the annual premium by the average premium of your single trip quotes, using the same medical maximum and deductible. If you expect more trips than the result, the annual plan costs less. WorldTrips suggests its annual plan for travelers taking two or more international trips a year, but your own quotes are the only reliable test.

Does annual travel insurance cover trips inside my home country?

Annual travel medical plans are written for travel outside your home country, so domestic trips are normally not covered and home country cover is limited to brief incidental returns, if it exists at all. Some annual trip insurance plans for US residents do cover domestic trips that are a minimum distance from home. The definition of a covered trip is in the policy wording.

Does an annual plan include trip cancellation?

Not always. WorldTrips states that Atlas MultiTrip does not include trip cancellation, and that is typical of annual travel medical plans. Annual trip insurance plans do include it, usually with a fixed limit that can be modest and may be shared across all trips in the year. Compare that limit with the prepaid cost of your most expensive trip before relying on it.

What happens if a trip runs longer than the per trip limit?

Cover normally ends on the last day of the limit, even though the annual policy is still in force, so a medical emergency after that date would not be insured. Some carriers do not allow a trip to be extended once you have left. If you know a trip will run long, buy a single trip policy for its full length before you depart.

List your trips, total the single trip quotes and check the day limit. If single trip cover comes out ahead, or you need Schengen cover for a first visit, compare plans on Ombrela with the plan finder.