Travel insurance for backpackers
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Annual travel insurance (also known as multi-trip travel insurance, annual multi-trip travel insurance, or frequent traveller insurance) can help you save time and money, as it can cover you for unlimited trips within a 12-month period. If you’re a self-confessed jet-setter, frequent leisure traveller, or someone who loves to travel on a whim, annual travel insurance can provide peace of mind for multiple trips each year.
Annual travel insurance offers coverage for those regularly travelling domestically or internationally. In these circumstances, such policies are typically more convenient than single trip travel insurance, as you don’t need to spend money on, and organise, a new policy each time you hop on a plane. This means you can fast-forward to the exciting parts of your trip.
There are two types of annual travel insurance policies that cover an unlimited number of trips. These include:
Most annual travel policies stipulate a maximum duration for each trip; these can range from 20 to 90 days. This means that between trips, you need to return home to keep coverage. For example, if your policy has a maximum trip duration of 90 days and you had organised a four-month trip, you would need to return home before those 90 days elapsed for the policy to cover any losses incurred during your four-month trip.
It’s also important to note that you cannot purchase annual travel insurance while overseas; you must be in Australia when your Certificate of Insurance is issued.
Annual travel insurance generally offers the same levels of cover as single policies. Typical scenarios covered include (some with individual limits):
As with any insurance policy, it’s important you carefully check the Product Disclosure Statement (PDS) for any inclusions or exclusions, and carefully compare annual travel insurance policies to understand which is best for you.
Depending on your level of insurance, annual travel policies won’t cover certain activities like winter sports including skiing, snowmobiling, and snowboarding. These activities are considered high-risk and can be covered by paying an extra premium. Even so, you can still be subject to certain conditions. Interestingly, some providers automatically cover bungy jumping, skydiving, and white water rafting subject to terms of cover. For more information, please read adventure travel insurance.
Similarly, cruises require cover specific to certain scenarios, including being confined to a cabin, or requiring emergency medical attention (like an airlift to the nearest hospital).
Claims arising from the following are typically not covered:
While annual travel insurance and single trip policies are very similar in coverage, there are some differences worth noting. As mentioned, annual travel insurance covers you for multiple trips in one year, whereas a single trip policy, as its name suggests, only covers one trip. You can visit multiple destinations when covered by a single trip policy, however the cover ends when you first return to your home in Australia. Moreover, while annual travel insurance typically covers multiple trips in one year of up to 90-days duration per trip, single trip policies cover just one trip that could be as short as two days, or could cover travellers for one long trip of up to 12 months or longer.
If you’re an employer or an employee who regularly hops on a plane for interstate or international business trips, you might like to consider business travel insurance. You can find an annual policy to cover either one or multiple employees within the same organisation throughout a 12-month period. Be sure to check your travel policy’s PDS, however, as some won’t cover injury, loss, or damage resulting from your profession.
Here are some extra considerations if you’re planning on taking out annual travel insurance:
For further information on how your age might affect your policy, be sure to take a look at seniors travel insurance.
We do not compare all travel insurers or products in the market. Any advice given above is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your personal circumstances, and before you make any decision about whether to purchase a product, you should read the PDS for that product.
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