Annual Travel Insurance: Is It Right for You?

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About travel insurance, is it needed? I’ve had a few clients who are glad they had purchased the travel insurance and one that wished she would have purchased it. 

This young woman with her two teenage daughters were going to make a trip to the Caribbean with their extended family of about 15 people. Her family begged her to come in a day early and spend the night so they could board the cruise ship in the morning. She said she couldn’t because “they had tickets to a concert the night before.”  My wife and I were driving to see our new addition to our family, when the phone call rang on that the Sunday morning. I answered and the voice on the phone was literally shaking, “I overslept and missed the airplane. Can I get on the ship?”  We worked for about an hour on the phone trying to find a way for her and her two daughters to make the ship in another port. No dice. Not only did she miss her family reunion but also lost out on a vacation cost of well over $4000. She was devastated and her daughters were totally disappointed.

So, what about insurance, what’s the best way to insure your vacation cost without breaking the bank?  If you find yourself packing your suitcase several times a year, an annual travel insurance plan can make life a whole lot easier. Instead of buying a new policy every time you head off on an adventure, one plan has your back all year round. It’s a real time-saver, letting you skip the paperwork and focus on the fun stuff.

On top of that, annual plans are usually better for your wallet if you’re a frequent traveler. Paying for a bunch of single-trip policies can really add up, so sticking with one yearly plan is often the smarter move for regular travelers.

Most annual plans come packed with useful coverage—think medical emergencies, trip cancellations, lost bags, and those annoying travel delays. Knowing you’re covered can give you a lot of peace of mind, meaning you can relax and enjoy the journey.

But annual travel insurance isn’t perfect. The coverage for things like lost baggage, delays, medical emergencies are usually covered per trip. But insurance for cancellation, is only an annual limit, meaning if you have a plan for $15,000 of travel per person per year, and you use $5000 of it on one trip, then your coverage drops to $10,000 for the remaining part of the year. What I like about annual trip insurance is that it usually covers almost the same amount as a per trip coverage at a lower cost to you.

Here's what insurance can cover:

 - Trip cancellation or interruption due to illness, injury, severe weather, or unforeseen events.
- Emergency medical expenses and hospital stays while traveling abroad.
- Emergency evacuation and repatriation.
- Lost, stolen, or delayed baggage and personal belongings.
- Travel delays and missed connections.
- Accidental death or dismemberment benefits.
- Rental car damage (if included in the policy).

Do I recommend the insurance? After seeing several clients needing to use their insurance polices over the last several years, I highly commend it.

Let's go traveling!

Jon & Kitty

#travelinsurance #familyvacation #murphyslaw