How Does an Annual Travel Insurance Policy Work?
An annual travel insurance policy includes all of the same coverages as a per-trip policy. For example, Allianz’s basic annual product, AllTrips Basic, offers:
Emergency medical coverage for medical and dental emergencies that happen during your trip, and that are covered by the policy, with no deductible (up to $20,000).
Emergency medical transportation for medically necessary transportation after illness or injury that’s covered by the policy (up to $100,000).
Baggage loss or damage for damage or theft of baggage and personal effects (up to $1,000).
Baggage delay for reimbursement of essential items during your trip if your baggage is delayed or misdirected by a carrier for 24 hours or more (up to $200).
Travel delay for reimbursement of eligible, additional expenses because of a covered delay of six hours or more (up to $600).
Rental car damage and if a car you’re renting is stolen or is damaged in an accident or while it’s left unattended (up to $45,000).
Travel accident coverage, which covers a cash payment for expenses due to death, loss of limbs or sight as a result of a travel accident (up to $25,000).
The basic annual policies from Allianz Travel start at $135, but they can get much more expensive. My family plan, which has more coverage, costs $2,000 per year.
And, while you can save a lot of money, there’s also a downside. A quick glance at the coverages shows why. If you travel enough, you can easily bump up against the coverage limits.
“Annual policies also come with additional restrictions, such as the maximum trip length or the total number of trips allowed within the coverage period. Most annual policies allow a maximum trip length of 90 days,” says Kasara Barto, a spokesperson for Squaremouth, a travel insurance site.
Read the full Forbes article online at https://www.forbes.com/advisor/travel-insurance/who-needs-annual-travel-insurance/.