How does annual travel insurance work?

Annual travel insurance policies tend to work well for people who travel multiple times in a year. You’re normally covered for an unlimited number of trips within a 12 month period. 

A multi trip insurance policy normally starts as soon as it’s taken out – but you’ll need to activate it for each new trip. 

There is usually a cap on the number of days that each individual trip can be. Most policies will say a single trip can’t be more than 31 days, so you won’t be covered if your holiday lasts longer.

You’re normally able to choose when you want your multi trip policy to start. 

It’s sensible to get a policy that starts on the first day of your first trip. Your coverage will usually last one year, so starting it on the first day of travel means you’ll get the most out of your insurance. 

It’s a good idea to buy insurance at the same time you book your holiday but set the day the policy starts to the day you travel. This is because if your trip is cancelled between booking and departure, you’ll still be covered. 

Annual travel insurance normally covers everything you’d expect in a standard travel insurance policy, including: 

• medical emergencies 
  
• if your trip gets cancelled 
  
• lost luggage 
  
• any travel delays. 
  

What your policy covers will be different depending on who you’ve purchased it with – so it’s really important to read your policy details carefully. 

There might be optional extras you want to add to your policy. This can include things like insurance for gadgets, winter sports or cruise trips. Think about whether you’ll need these as part of your policy. 

You’re usually covered up to a certain amount for each part of the insurance. For example, you might be insured up to £1,500 for any cancellations. Think about whether this is enough for your needs. 

You’ll be able to choose who is covered by your multi trip policy. Normally it will only cover you as the policy holder, but you can choose family policies that will insure all of your family members. 

You’ll choose which areas are covered by your policy. Normally you have a choice between: 

• Europe 
  
• worldwide - except for USA, Canada and the Caribbean 
  
• worldwide.
  

The cost may be higher for wider coverage, so choose the option that best suits your travel plans.

Single trip travel insurance will cover just one specific trip, while annual insurance covers multiple trips within a whole year. 

Whether or not it’s better to get an annual policy depends on your travel plans. If you’re just planning to travel once during the year, a single trip policy can be cheaper. 

If you’re going to travel a few times within a year, annual insurance is often more cost-effective. It’s worth comparing prices to see what makes the most sense financially. 

It can also be more convenient to buy annual insurance, as you won’t need to buy a new policy for every trip. 

Although the amount you’ll pay for annual insurance is higher than a single trip policy, you’re spreading this cost over multiple trips. This can mean the price-per-trip is lower than a few single trip policies. 

It really depends on the number of trips you’re taking in a year, and the cost of those single trip policies, so be sure to compare and pick the one that works best for you. 

Some situations can make it difficult to get travel insurance, and you might need additional cover.  

If you have a pre-existing medical condition, you might find that you’re refused insurance or that quotes are a lot higher than you’d expect. Get help from our travel insurance directory to find specialist providers if this is the case. 

If you are travelling to an area with a high risk of natural disasters or violence, this can mean you’ll need additional cover. Weigh up the costs, risks and your personal needs before travelling. 

You might also find that certain types of trips aren’t covered by your standard policy. This can include ski trips, cruises, or other activities that come with added risk. 

You’re normally able to cancel an annual travel insurance policy within 14 days of purchasing it. This is known as the ‘cooling-off period’, and most providers will allow you to cancel during this time. 

That’s not always the case though. Different providers have different terms, so make sure you check the cancellation policies before buying. Some providers may charge a cancellation fee. 

It might be, but it depends on your plans.  

If you’re travelling to different countries many times in a year, you’ll probably find an annual policy is cheaper and more convenient.  

If you have two or three trips planned, it’s a good idea to compare the two options. Use a price comparison site to see what the best deals are. 

If you have one trip planned, it’s normally going to be cheaper to get a single trip policy.

Whether an annual policy is right for you depends on a wide range of factors, so using a price comparison website is a smart move. 

Our guide to finding the best deal using price comparison sites can help you make sure you’re getting the best price and coverage possible.