Annual travel insurance
Expert tips for searching for annual multi-trip travel insurance
Our travel insurance expert, Adrian Taylor, has some insider tips to help you choose an annual policy for your travel itinerary and budget.
Adrian Taylor
Chief Executive – General Insurance
Be aware of your maximum trip length
Annual cover will always have maximum trip length restrictions (e.g. 30 to 90 days) for each trip you take. If you continue travelling on a single trip past the end of the trip length mentioned in your policy, you will not be covered.
Check if you’re covered for domestic trips
Some annual multi-trip policies cover international travel and trips in Australia. However, the maximum trip lengths listed in your policy may differ between domestic and international trips.
Declare any pre-existing medical conditions
Always declare any pre-existing medical conditions as part of your travel insurance application to help ensure you have the cover that matches your needs. Taking out a policy that covers your pre-existing medical conditions may cost more but can help prevent any unpleasant surprises if you become ill while travelling and need to claim.
What is annual multi-trip travel insurance?
Annual travel insurance allows frequent travellers to take an unlimited number of trips within a year under a single insurance policy. It is also known as annual cover, annual multi-trip travel insurance, annual multi-trip plan or frequent travel insurance.
How does annual travel insurance work?
Annual travel insurance policies cover an unlimited number of trips overseas up to the maximum number of days per trip and may also include cover for domestic trips. Most annual policies provide comprehensive cover, including cover for overseas medical expenses, lost luggage and personal effects, and cancellation fees.
Cover for domestic trips will not include cover for medical or hospital expenses due to Medicare coverage and will usually only cover losses once you have travelled a specified distance from your home. All annual multi-trip travel insurance policies will also stipulate a maximum trip duration for each time you travel, which can range from 30 to 90 days.
In general, you can’t purchase annual travel insurance if you’re already overseas. You must be in Australia when your travel documents, such as your Certificate of Insurance, are issued.
What does annual travel insurance cover?
Annual travel insurance will normally provide cover for medical expenses, trip cancellations and lost or stolen luggage, which are often the same inclusions as single-trip comprehensive policies.
An annual travel insurance plan may include cover for:
- overseas medical and hospital expenses
- emergency medical evacuation and repatriation costs
- trip cancellation and travel delays
- lost, damaged or stolen luggage, personal effects and personal belongings
- theft of cash
- rental vehicle excess
- legal liability (in certain circumstances)
- permanent disability and loss of income
- accidental death
- 24/7 emergency assistance.
Travel insurance policies vary between insurers, so read your policy’s Product Disclosure Statement (PDS) to know exactly what you’re covered for, including the policy’s limits, sub-limits and exclusions. Read the Target Market Determination (TMD) to check whether a policy is suitable for your needs.
What does annual travel insurance exclude?
Just like single-trip policies, annual cover comes with general exclusions, including:
- Pre-existing medical conditions. Typically, undisclosed pre-existing conditions, or conditions that haven’t been approved by your insurer, will be excluded from your cover.
- Travelling against government advice, such as warnings against travel issued by Smartraveller.
- Negligence leading to loss of personal property and valuables, such as leaving your luggage unattended in a public place.
- Extreme or high-risk activities, although certain approved activities may be covered under an adventure activities, winter sports or cruise cover optional extra that you can purchase for an additional premium.
- Drug or alcohol-related claims. If you are injured or suffered a loss while under the influence of an intoxicating substance, you won’t be covered.
- Loss or injuries from unlawful activities.
- Claims relating to acts of war, terrorism or civil unrest.
Furthermore, some exclusions apply to senior travellers. That doesn’t mean you can’t get a multi-trip plan, but there may be higher premiums, caps to some benefits or additional exclusions.
Why is annual travel insurance beneficial?
Annual travel insurance benefits frequent travellers by allowing them to take out a single policy covers any trips within a 365-day period. For travellers who generally take several trips a year, an annual policy can often work out cheaper than taking out separate policies for each trip.
For insurers, annual polices allow them to average out their risk exposure across the year, and also reduces their admin burden with just one underwriting process and one set of documents to manage and issue. These savings can be passed on to customers in through lower premiums.
Not only can an annual policy often end up saving you money, but one application for multiple trips means less hassle too. Plus, an annual travel policy frees you up to take spontaneous trips knowing you already have appropriate cover in place.
What’s the difference between annual multi-trip travel insurance and a single-trip policy?
An annual travel insurance policy covers you for multiple trips in a year, whereas a single-trip policy only covers one trip. This means that while you can still visit various destinations on a single trip policy, your cover will end when you return to Australia.
Annual travel insurance typically covers multiple trips in one year, but the duration of each trip will be capped at a maximum duration (typically 30-90 days). On the other hand, single-trip policies cover just one trip that could be as short as one day or as long as 12 months or more.
A significant advantage of an annual multi-trip travel insurance policy is that it provides consistent cover for your travels during a 12-month period. This gives you the same financial protection and peace of mind for every trip you take, as long as you return home within your chosen maximum trip duration and meet the other requirements of your policy, such as not exceeding your claim limits.
Is annual multi-trip travel insurance cheaper than single policies?
Yes, annual multi-trip travel insurance is often cheaper than multiple single policies in the long run. However, the value of your policy will depend on how many trips you take under your annual cover. If you and your dependants are frequent travellers or travel more than three times a year, an annual travel insurance policy could be a more cost-effective option compared to buying multiple single-trip policies – even though the initial cost may be higher.
Meet our travel insurance expert, Adrian Taylor
As a General Insurance expert with over 13 years’ experience in financial services, Adrian Taylor believes in educating customers about the importance of travel insurance so that anyone can kick back and make the most of their time away from home. While no one wants a disrupted holiday, a suitable travel insurance policy can provide a financial safety net for yourself, your belongings and your trip in case things go wrong.