As summer travel chaos nears, a financial planner has a tip for even the most experienced travelers
Hanna Horvath
Personal Finance, Insurance, Travel Insurance
Air travel summer is forecasted to be even more hectic than usual.

Frequent travelers especially may benefit from annual travel insurance instead of insuring each trip.

Your credit card may come with some travel protections, but it may not be enough.

If you're planning a summer vacation this year, the last thing you want is an unexpected event to derail your plans (and cost you).

Flights get delayed or canceled constantly. Luggage disappears into the ether. Medical emergencies occur in remote destinations. And that's before the especially chaotic summer of air travel the industry is forecasting. Yet many jetsetters simply cross their fingers and hope for the best rather than prepare for the worst.

That's why, as a financial planner, I believe it's crucial to consider protecting your trips with the right insurance coverage. One option often overlooked, particularly by frequent travelers, is annual travel insurance.

Annual travel insurance covers all your trips within 365 days. Unlike stand-alone travel insurance, which only covers you for a specific trip, an annual policy covers any trips you take within the year.

That's why I tell clients who travel frequently that an annual policy is a good choice for their needs. By opting for an annual plan, you don't have to go through the hassle of booking multiple policies and potentially save money compared to purchasing individual trip coverage. Here's how it works.

What to look for in a policy

While specifics may vary depending on the insurer and plan tier, most include the following key benefits:

It's important to note that annual travel insurance plans have limitations. Certain high-risk activities, pre-existing medical conditions, and travel to specific regions may be restricted or require additional coverage.

Some travelers may assume that their credit card's built-in travel protections are enough. While many travel rewards credit cards offer perks like rental car insurance, trip cancellation, and baggage reimbursement, the coverage limits are often much lower than a dedicated annual travel insurance plan.

Credit card coverage for emergency medical care is also particularly limited — capped at a few thousand dollars — which may not be enough in the face of a major international medical emergency.

How much travel justifies an annual plan?

For the occasional traveler who takes one or two trips a year, single-trip policies will probably work for you. But if you fall into any of these buckets, you may want to consider an annual policy:

Annual plans cover all of your trips within a 365-day period after purchasing. They're basically a bundle of multiple policies into one package deal. This means you only have to buy one policy to manage, locking in your coverage for the year.

How to decide if an annual policy makes sense for you

Start by reviewing your travel plans this year — and your risk tolerance. Calculate how much buying individual travel insurance policies would cost you over the next year and compare it to the price of an annual plan.

Don't just focus on the premium — carefully evaluate coverage limits, exclusions, and deductibles to ensure you have enough protection for your needs.

An annual policy gives you the flexibility to take spontaneous trips without the hassle of obtaining last-minute insurance. More importantly, it provides peace of mind, knowing that you're covered for a wide range of travel disruptions and emergencies.

As the busy summer travel season ramps up, definitely explore protecting your trips with insurance, especially if you're jetting off internationally. Spending hours on the phone trying to rebook canceled flights or worrying about affording an overseas medical emergency is no way to vacation.
Air travel summer is forecasted to be even more hectic than usual.
Frequent travelers especially may benefit from annual travel insurance instead of insuring each trip.
Your credit card may come with some travel protections, but it may not be enough.
If you're planning a summer vacation this year, the last thing you want is an unexpected event to derail your plans (and cost you). Flights get delayed or canceled constantly. Luggage disappears into the ether. Medical emergencies occur in remote destinations. And that's before the especially chaotic summer of air travel the industry is forecasting. Yet many jetsetters simply cross their fingers and hope for the best rather than prepare for the worst. That's why, as a financial planner, I believe it's crucial to consider protecting your trips with the right insurance coverage. One option often overlooked, particularly by frequent travelers, is annual travel insurance. Annual travel insurance covers all your trips within 365 days. Unlike stand-alone travel insurance, which only covers you for a specific trip, an annual policy covers any trips you take within the year. That's why I tell clients who travel frequently that an annual policy is a good choice for their needs. By opting for an annual plan, you don't have to go through the hassle of booking multiple policies and potentially save money compared to purchasing individual trip coverage. Here's how it works. While specifics may vary depending on the insurer and plan tier, most include the following key benefits: It's important to note that annual travel insurance plans have limitations. Certain high-risk activities, pre-existing medical conditions, and travel to specific regions may be restricted or require additional coverage. Some travelers may assume that their credit card's built-in travel protections are enough. While many travel rewards credit cards offer perks like rental car insurance, trip cancellation, and baggage reimbursement, the coverage limits are often much lower than a dedicated annual travel insurance plan. Credit card coverage for emergency medical care is also particularly limited — capped at a few thousand dollars — which may not be enough in the face of a major international medical emergency. For the occasional traveler who takes one or two trips a year, single-trip policies will probably work for you. But if you fall into any of these buckets, you may want to consider an annual policy: Annual plans cover all of your trips within a 365-day period after purchasing. They're basically a bundle of multiple policies into one package deal. This means you only have to buy one policy to manage, locking in your coverage for the year. Start by reviewing your travel plans this year — and your risk tolerance. Calculate how much buying individual travel insurance policies would cost you over the next year and compare it to the price of an annual plan. Don't just focus on the premium — carefully evaluate coverage limits, exclusions, and deductibles to ensure you have enough protection for your needs. An annual policy gives you the flexibility to take spontaneous trips without the hassle of obtaining last-minute insurance. More importantly, it provides peace of mind, knowing that you're covered for a wide range of travel disruptions and emergencies. As the busy summer travel season ramps up, definitely explore protecting your trips with insurance, especially if you're jetting off internationally. Spending hours on the phone trying to rebook canceled flights or worrying about affording an overseas medical emergency is no way to vacation.
 What to look for in a policy How much travel justifies an annual plan? How to decide if an annual policy makes sense for you