Annual travel insurance: Is it the right choice for you?

What is annual travel insurance and how does it differ from single-trip travel insurance?

Annual travel insurance covers all your trips for an entire year (12 months). Depending on the insurer, it may be called multi-trip travel insurance—it’s the same type of coverage.

It differs from single-trip travel insurance, which covers one specific trip. Annual coverage often becomes the better deal if you plan to travel several times throughout the year. Single-trip coverage is better suited to occasional travellers.

What does annual travel insurance cover?

Annual travel insurance generally offers the same coverage as standard travel insurance. The most common coverage includes emergency medical care:

• Hospitalization
• Ambulance transport
• Physician fees
• Prescription drugs and medications
• Repatriation

You can also add baggage coverage, as well as trip cancellation and interruption coverage.

What is the maximum duration per trip?

With annual travel insurance, you choose a maximum duration per trip. This limit applies to all your trips throughout the year and varies by insurer.

For example, the CAA-Quebec Multi-Trip Travel Insurance offers durations of 4, 8, 15, 30, 60, and 90 days, with unlimited coverage for travel within Canada.* If you’re planning a weekend in New York, a week at an all-inclusive resort down south, and two weeks in Portugal, a 15-day plan could be the right fit.

What happens if a trip exceeds the planned duration?

If one of your trips lasts longer than the limit set out in your policy, you will need to purchase a trip extension.

How many trips per year does it take for annual coverage to be worthwhile?

Generally, annual travel insurance pays off starting with your second trip. It often costs less than purchasing separate policies for each trip. If you travel frequently, it can also save you time, since you don’t need to apply for coverage again before each departure.

What are the benefits of annual travel insurance?

Annual travel insurance allows you to:

• enjoy continuous coverage throughout the year for as many trips as you’d like;
• avoid taking out new insurance before every departure;
• simplify the management of your travel insurance (one single policy);
• save time when you’re getting ready to leave;
• make last-minute travel easier; and
• adjust your coverage as needed (e.g., trip extension).

Some plans also include additional benefits. For example, the Annual Plan offered by CAA-Quebec covers certain medical expenses within Quebec, such as ambulance transport. It also removes the maximum trip duration limit for travel within Canada, providing unlimited coverage.

Are all annual travel insurance plans equal?

No. Even if the plans look similar, the conditions can vary:

• Number of days covered per trip
• Exclusions
• Eligible age
• Pre-existing conditions
• Reimbursement limits
• Cancellation options

Always compare coverage and limitations before choosing. Terms and conditions vary from one policy to another and from one insurance company to another.

Are pre-existing conditions covered under annual plans?

Yes, pre-existing conditions may be covered under an annual plan, provided they have been stable for the required period before each departure.

This period is generally:

• 3 months for travellers under 60
• 6 months for travellers aged 60 and over

Your condition is considered stable if there have been no new health issues, emergency room visits, or changes (medication, symptoms, treatments, hospitalization). Certain exclusions may also apply in situations involving an immediate family member.

For more details, see our article on travel insurance and health conditions.

Is my credit card travel insurance enough for the whole year?

Not always. Travel insurance included with a credit card can offer useful coverage, but it is often not sufficient to cover all your trips throughout the year.

Many cards come with certain limitations:

• Maximum trip duration, often between 10 and 30 days
• Age restrictions
• Lower medical coverage limits
• Strict conditions for pre-existing conditions
• A requirement to have paid for the trip with the card in order to be covered

Also see our article on credit cards with travel insurance.

Who should consider annual travel insurance?

Contrary to what you might think, this coverage isn’t just for frequent flyers.

This coverage could be a good choice if you:

• travel at least twice a year;
• mix short stays with longer trips;
• travel to the United States, the South, or Europe;
• enjoy shopping trips to the United States;
• frequently visit family in Ontario or elsewhere in Canada;
• travel for work, shows, or sporting events; or
• tend to travel on short notice.

This travel insurance can be useful even for trips within Canada. Certain expenses are not covered outside Quebec by government health insurance plans like RAMQ, such as prescription medications, ambulance transport, and certain emergency care.

If you travel at least twice a year—even for short trips—annual travel insurance may be worth it. It can simplify your life, reduce the steps involved in getting coverage, and sometimes cost you less.

FAQ – Annual travel insurance

1. Can I travel for 6 consecutive months with annual travel insurance?

Generally, no. Annual travel insurance typically sets a maximum duration per trip, depending on the plan selected: 15, 30, 60, or 90 consecutive days. For a 6-month stay, you will usually need to purchase an extension, ideally before your departure. If a claim is already in progress, your extension request could be denied.

Good to know: The CAA-Quebec Annual Plan includes unlimited coverage for travel within Canada. For example, a 6-month stay in British Columbia could be covered under a 4-day annual plan.

2. Can you extend travel insurance while you’re already on your trip?

Yes, in many cases. However, it is recommended that you purchase the extension before your initial coverage expires, as certain conditions apply. If a claim is already in progress, your extension request could be denied.

3. Do you need to be in good health to take out annual travel insurance?

No, but your health condition may affect your coverage. Certain medical conditions may be accepted if they meet the stability requirements before each departure.

4. Does annual travel insurance cover all types of trips?

Yes, in the vast majority of cases. Certain situations may be excluded or limited depending on the policy—for example, a destination under a Government of Canada travel advisory, or a trip taken to participate in a competitive sporting event.

5. Does annual travel insurance cover the United States?

Yes, annual travel insurance can cover travel to the United States.

* In Quebec, an overnight stay at a commercial establishment is required for a trip to be considered travel.