Annual Travel Insurance: One Policy for a Year of Trips (2025)

Things can happen when you travel — lost luggage, last-minute cancellations, or unexpected illness or injury. When unpleasant surprises interfere with your trip, travel insurance can protect you from losing money on canceled plans.

Travel insurance works like other insurance products. It helps pay for losses once you file a claim and have it approved. If you travel multiple times per year, an annual or multi-trip travel insurance policy may be a good idea.

Multi-trip travel insurance is a single policy that covers all the trips you take throughout a 12-month period.^[1] Buying one multi-trip policy may be cheaper than purchasing a new one every time you travel.

Keep reading to learn how multi-trip travel insurance works, what a policy costs, which travel insurance companies are best, and how to buy a policy.

What is annual travel insurance?

Annual travel insurance is insurance that covers multiple trips during a 12-month period. Also known as multi-trip insurance, it allows frequent travelers to have coverage without buying a policy every time they book a trip.

The 12 months your annual trip insurance covers is a policy year. It begins when you buy the policy and ends exactly one year later. So if you bought an annual travel insurance policy on June 1, 2025, it would last until June 1, 2026, not just the remainder of 2025.

If you travel at least three times per year, you may find that multi-trip travel insurance is less expensive than buying individual policies. Securing an annual travel insurance policy can also be more convenient than going through the process of getting coverage for separate trips.

How annual travel insurance works

Once you’ve purchased an annual travel insurance policy, it protects all your trips for the next 12 months. You don’t have to notify your insurer before leaving on a trip — your coverage applies automatically. Most annual travel insurance caps the number of days it’ll cover per trip — usually 30–90 days.

If a covered event happens while you’re traveling — lost luggage, for example — you’ll need to file a claim right away for that particular instance. Your policy won’t cover claims for incidents you didn’t report at the time they happened.

When your policy is set to expire, you’ll have the option to renew it for another year. Some companies can automatically renew it if that’s more convenient for you. If you aren’t going to travel near your policy’s expiration date, you can always hold off on renewing and buy a new policy before your next trip to maximize the 12-month coverage period.

When annual travel insurance makes sense

Multi-trip travel insurance may not be right for everyone. But it can be a time-saver and a good investment if:

• You take three or more business or leisure trips per year.

• You could save money by buying one annual travel insurance policy instead of multiple single-trip policies.

• You frequently travel with children and would benefit from the free coverage some insurers provide for minors.

• You’re a digital nomad who can work in different areas.

• You like to book multiple last-minute getaways.

Meanwhile, single-trip travel insurance policies can be beneficial if you take just one or two trips per year, are going on a long cruise, or are taking a high-value trip. These policies are typically very comprehensive and can shield you from financial loss in the event your trip is canceled or interrupted or if you have a medical emergency.

What annual travel insurance covers

Annual travel insurance policies work a bit differently from single-trip coverage. A multi-trip policy may exclude some basics that single-trip policies cover. Or it may place limits on what it covers, how much you can get reimbursed, and what counts as a reimbursable event.

Here’s a look at how annual travel insurance handles some common coverages:

• Emergency medical: Like single-trip policies, annual travel insurance typically covers emergency medical costs. But your policy may act as secondary insurance, taking effect only after your primary health insurance has paid for a covered expense.

• Trip cancellation and interruption: This coverage can reimburse you for expenses such as prepaid deposits or cancellation charges if your trip gets canceled due to weather, illness, or another covered situation. But not all annual policies automatically include this coverage, so be sure to read the fine print before buying a policy. And if you want to be able to cancel for any reason at all, you’ll need to buy a policy that includes cancel-for-any-reason (CFAR) coverage.

• Trip delay and missed connection: Not all annual policies automatically include this coverage, which would pay for unexpected costs associated with your trip being delayed for a covered reason. Potential expenses include food, transportation, and hotel rooms.

• Baggage loss/delay: Multi-trip policies may not cover lost, stolen, or damaged checked luggage (or personal items that were inside). And if your policy does cover baggage, you’ll typically have per-item and maximum limits for baggage losses.

• Accidental death and dismemberment: Your annual travel insurance policy may provide coverage if you or a family member dies or is severely injured during a trip.

What annual travel insurance doesn’t cover

Annual travel insurance can do a great job shielding you from financial loss while you’re away, but it doesn’t cover every unforeseen circumstance. Here are some situations your multi-trip insurance policy might not pay for:

• Pre-existing conditions: Most travel insurance companies won’t cover a medical emergency stemming from a condition you or a travel companion had before you bought the policy.

• Extreme sports or high-risk activities: Generally, travel insurance won’t cover injuries resulting from participating in high-risk activities and sports, such as hang gliding, bungee jumping, and skydiving.

• Acts of war: Trip cancellations or interruptions due to war usually aren’t covered, especially in areas where existing government warnings or “do not travel” advisories were in place when you made reservations.

• Long-term stays beyond maximum trip length: Remember, annual travel insurance policies often cap how long they’ll cover your trip (usually up to 90 days). If you expect a particular trip to last longer than the max, you may want to look into a single-trip policy to ensure coverage.

• Routine medical care: Your annual travel insurance policy will cover medical expenses for emergencies while you travel, but not a routine medical situation like a checkup or something related to a pre-existing condition.

How much does annual travel insurance cost?

Pricing for annual travel insurance plans is different from single-trip costs. Most single-trip policies cost 4%–8% of the total trip cost. But multi-trip policies typically cost a flat rate that covers every trip you take during the policy term. As with single-trip coverage, your age and state of residence can affect the cost of your annual travel insurance plan.

Here’s a comparison of travel insurance costs for multiple single-trip policies versus one annual policy. Rates are based on a 25-year-old single traveler from North Carolina taking four trips. Single-trip premiums are based on 4% of each trip’s total cost. The annual premium represents a basic policy.

Trip	Trip Cost	Single-Trip Premium (4% of Trip Cost)	Annual Policy Premium
Trip one	$6,500	$260	—
Trip two	$4,375	$175	—
Trip three	$10,000	$400	—
Trip four	$8,750	$350	—
Total premium	—	$1,185	$202

You can see that the total cost of four individual policies adds up to more than the flat rate for an annual travel insurance policy. But keep in mind, annual policies may exclude or charge extra for coverages that single-trip policies usually include.

That’s why it’s important to carefully review and compare coverages and costs before deciding on what type of policy to buy and which company to buy it from.

How to buy an annual travel insurance policy

You have several options for buying annual travel insurance online, including comparison sites and directly from insurer websites. You may also be able to buy a policy through a travel agent or credit card company.

Here are the basic steps to buy a multi-trip travel insurance policy:

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  1. Calculate your likely trip costs for the year

  If you know you’ll take more than three trips in a year, an annual travel insurance policy may be the most cost-effective way to protect your travel plans.

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  2. Get multiple quotes

  It’s a good idea to compare quotes since costs can vary widely among insurers. Just be sure you’re making apples-to-apples comparisons. For example, one insurer may offer a lower quote but exclude a type of coverage that another insurer includes for a slightly higher price.

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  3. Customize your policy

  Most insurers offer ways to customize your travel insurance with add-on coverages. For example, you may be able to add telehealth services or choose a higher limit for baggage reimbursement.

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  4. Verify your policy details

  Before hitting that “purchase” button, review the policy’s details thoroughly. It’s important to ensure the annual travel insurance policy you choose will meet your needs for the next 12 months.

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  5. Pay for coverage

  Once you’re confident a policy is right for you, it’s time to pay your premium. For most annual policies, the premium will be low enough to pay the whole amount at the time of purchase. But some insurers may offer different payment arrangements, especially for higher costs.

Annual travel insurance FAQs