# Friday, October 10, 2014
                 
Annual Travel Insurance
As travel insurance brokers we often get asked by Canadians about annual travel insurance plans and whether or not they make more sense when compared to single-trip plans.

In this blog article we address these questions and also offer tips and advice for anyone who is considering multi-trip travel insurance.

What is Annual Travel Insurance?

Annual travel insurance plans are also called multi-trip plans. As the name implies this type of insurance is good for an unlimited number of trips within one calendar year of the effective policy date.

Annual travel plans have a "trip length" (also referred to as "trip duration") for which the insured is covered. If a person with an annual travel insurance plan stays longer than expected and they exceed their allowed trip length than they are no longer covered by the annual travel policy (note that it is possible to buy "top-up" insurance designed to fill this gap in coverage).

The longer the trip length the higher the premiums. Common trips lengths offered by most insurance companies are: 4 days; 8 days; 15 days; and 30 days (this does vary slightly between insurance companies).

What about Trip Cancellation/Interruption and Baggage Loss?

Some annual travel plans do not offer add-ons such as trip cancellation, trip interruption or baggage loss. This is due to the unknown nature of the trips you can go on (e.g. the destination, etc.).

However, it is possible to get "all inclusive" multi-trip plans that offer these types of coverage. All of the carriers we represent offer inclusive multi-trip travel insurance plans (Manulife, TIC*, RSA and GMS).

When Does an Annual Travel Plan Make Sense?

An annual travel insurance plan usually makes good economic sense if the insured travels 3 or more times within a year. The more often you travel, the more money you save compared to single-trip coverage.

Multi-trip travel insurance plans are also ideal for those situations where a person needs to travel abroad whenever the job situation calls for it.

Important: if you are not sure if a multi-trip plan will save you money please get all the free, instant travel insurance quotes that you need from our web site at your leisure.

Who Might Use Annual Travel Plans?

Annual travel insurance plans are ideal for:
  • Canadian students studying in the US. Students can come home every few months and are then covered when they go back to the US for their studies (note that TIC is a good choice since they offer an annual plan with a 125-day trip length).
     
  • Business people that travel often as part of their job (this includes inter-provincial travel).
     
  • Canadian snowbirds that travel to warmer southern climates for the winter (sometimes annual coverage for a 30 day trip length plus top up insurance is cheaper than single trip coverage, please contact us for more details).
     
  • People that live in border communities that like the cross border shopping deals (such as Sarnia Ontario or British Columbia border towns near Seattle, Washington).
     
  • Anyone who knows they will be traveling at least 3 times within the year.

Conclusion

We hope you found this blog article about annual travel insurance helpful.

Please feel free to contact us if you have any questions or would like clarification about something we’ve discussed.


* The TIC all-inclusive plan does not offer baggage loss coverage.

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