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Travel Insurance: Annual or Single Trip?


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What is your thinking about buying Annual Travel Insurance versus insurance for each trip? Our plans are to take at least two trips to Europe, one September, 2024 and another one already booked in April, 2025. There may be at least one more trip within that year.

 

At what point does Annual Insurance become the better option?

 

Neal

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This is an answer that speaks to Canadian insurance, because we have had annual policies and we have had trip specific policies.

 

It becomes a cost thing for us and hedging our risk of a need to cancel.

 

We started cruising in 2017 and have done 11 cruises now since that start.

 

When we look at the cost for us to cover one trip, the total insurance for both of us comes to about $1,000.00.  BUT, this covers to the full paid price of the trip.

 

If we are taking 2 trips in the year, then that is a cost of $2,000.00.  Simple math.  Again, coverage for the full paid price of the trip.

 

When we buy an annual package that covers us for any number of trips in the 12 months from purchase (up to 17 or 31 days which is selected when purchasing) then we pay about $1,200.00 and have coverage for both or all trips we take that year.

 

BUT, and it can be a BIG but...  This annual coverage only gives us a return of up to $5,000.00 per person per trip.  In some cases, with air, the cost per person can be $7K to $9K.  

 

Note as well that this is not CFAR insurance, but must have a valid cancellation reason as per the policy.

 

I do a cost spreadsheet to look at this.

 

With Viking which is our preferred cruise line, we pay in full 6 months before sailing.  The first penalty with Viking is at 120 days from sailing.  So, we can cancel with Viking up to 120 days or 2 months after we have paid in full and receive everything back but the deposit.

 

During that 120 days there is a sliding scale of what Viking will refund and what we have to depend on the insurance for.  We start to lose money usually between 60 and 90 days out.  

 

If we are cancelling in the final 30 days there is no refund from Viking so we can be losing 4-5K per person.

 

You have to hedge your bets on this one.  What will you feel more comfortable with.

 

 

 

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When I priced the policies out we saved money buying individual plans when we had 2 trips in a year. If we were to add a third trip then it would save money to buy the annual plan. Essentially that is what you have to do for your own situation- price out the individual plans for the two trips and compare that total with an annual plan and then decide if the cost difference is worth the gamble if you do add a third trip.

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Thanks for the ideas. Upon reading here and in the recommended Cruise/Travel Insurance forum, it looks like just two planned trips my not make it a good value for several reasons.

 

I did get referred to Trip Insurance Store as a good and knowledge broker for Travel Insurance.

 

Neal

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Posted (edited)
4 hours ago, George C said:

What companies offer annual insurance? I believe this will save us .

We have an annual GeoBlue (Trekker) policy. 

Edited by Ashland
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I would contact Steve Daisos at the tripinsurancestore. He and his staff are very knowledgeable about all things travel insurance related. He has also been featured several times on the Q&A section of this forum!

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1 hour ago, wwcruisers said:

I would contact Steve Daisos at the tripinsurancestore. He and his staff are very knowledgeable about all things travel insurance related. He has also been featured several times on the Q&A section of this forum!

Agree...Steve and his associates are wonderful. We've been using them for years.

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As with anything, it's about the math and assessing your true needs. There is no "better" in every scenario. 

 

Personally, I do neither. My credit card includes travel insurances and my employer health insurance has international coverage. It would be silly for me to buy insurance for CFAR, (which I have never needed) to be insuring 50-75% of my trip.

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22 hours ago, Joebucks said:

As with anything, it's about the math and assessing your true needs. There is no "better" in every scenario. 

 

Personally, I do neither. My credit card includes travel insurances and my employer health insurance has international coverage. It would be silly for me to buy insurance for CFAR, (which I have never needed) to be insuring 50-75% of my trip.

 

With all due respect to your comment "which I have never needed", you just don't know when you will need it.

 

I once said to my financial advisor when he was suggesting different types of disability insurance, that I did not plan to be disabled.  His response was that no one does plan that.  It happens.

 

I hear what you are saying, but our credit cards only offer $2,500 per person for a covered reason for cancelling and most of our cruises are over $6K per person.  Huge loss possible there if cancelling was more or less last minute for an unforeseen event.

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23 hours ago, d9704011 said:

Does that include leisure travel, in addition to business travel?

 

I am not the person that posted this, so lets see their reply, BUT, I have travel medical through my company that covers both me and my husband for emergency medical and medical evacuation up to 5 million.  This package includes both business and leisure travel and unlimited number of trips annually.

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1 minute ago, CDNPolar said:

 

I am not the person that posted this, so lets see their reply, BUT, I have travel medical through my company that covers both me and my husband for emergency medical and medical evacuation up to 5 million.  This package includes both business and leisure travel and unlimited number of trips annually.

Pretty handy.  When I was working, our insurance good only on business travel.

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On 3/30/2024 at 6:05 AM, CDNPolar said:

 

With all due respect to your comment "which I have never needed", you just don't know when you will need it.

 

I once said to my financial advisor when he was suggesting different types of disability insurance, that I did not plan to be disabled.  His response was that no one does plan that.  It happens.

 

I hear what you are saying, but our credit cards only offer $2,500 per person for a covered reason for cancelling and most of our cruises are over $6K per person.  Huge loss possible there if cancelling was more or less last minute for an unforeseen event.

 

While your statement is right in theory, there's a reason I said it the way I did. CFAR insurance is really the only thing I'm foregoing. In I don't even know how many trips I've ever taken, never had to use it. It is not something that would bankrupt me. So why would I spend more throughout a lifetime, to insure one of them? 

 

My card covers up to $10k per person and $20k per trip of cancellation for sickness, severe weather, and other covered events. I will not pay extra "in case I can't go." CFAR doesn't even cover the entire trip either. It covers about 50-75% of expenses that wouldn't be refunded otherwise. So I'd get back port expenses, taxes, and other fees without insurance (and who knows, maybe even something a future credit or something else if I pursue it). With something I have never had to claim, why would I pay hundreds of dollars to get back 40-60% of my cruise? Those numbers do not add up.

 

Insurance is a lifelong waste to 95%+ of people. There's a reason it is one of the few remaining things we buy that someone is getting recurring commission on. It is extremely profitable. I maintain the minimal amounts to protect myself from catastrophic loss. That is what insurance is supposed to be. Not to solve your every inconvenience. I can't even count how many times I have facepalmed about the amount of people who swear by travel insurance because after years of policies, they saved $500 or so on one event. 

 

On 3/30/2024 at 6:13 AM, d9704011 said:

Does that include leisure travel, in addition to business travel?

 

Yes. Plus, I have money saved in an HSA should I even incur a medical expense. I've grown tired over the years of paying for fear insurance that got me little in return. Instead, I self-insure and pay myself in an account that is always mine. It is never denied because of how or where I get sick, or how I claimed it. 

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47 minutes ago, Joebucks said:

 

While your statement is right in theory, there's a reason I said it the way I did. CFAR insurance is really the only thing I'm foregoing. In I don't even know how many trips I've ever taken, never had to use it. It is not something that would bankrupt me. So why would I spend more throughout a lifetime, to insure one of them? 

 

My card covers up to $10k per person and $20k per trip of cancellation for sickness, severe weather, and other covered events. I will not pay extra "in case I can't go." CFAR doesn't even cover the entire trip either. It covers about 50-75% of expenses that wouldn't be refunded otherwise. So I'd get back port expenses, taxes, and other fees without insurance (and who knows, maybe even something a future credit or something else if I pursue it). With something I have never had to claim, why would I pay hundreds of dollars to get back 40-60% of my cruise? Those numbers do not add up.

 

Insurance is a lifelong waste to 95%+ of people. There's a reason it is one of the few remaining things we buy that someone is getting recurring commission on. It is extremely profitable. I maintain the minimal amounts to protect myself from catastrophic loss. That is what insurance is supposed to be. Not to solve your every inconvenience. I can't even count how many times I have facepalmed about the amount of people who swear by travel insurance because after years of policies, they saved $500 or so on one event. 

 

 

Yes. Plus, I have money saved in an HSA should I even incur a medical expense. I've grown tired over the years of paying for fear insurance that got me little in return. Instead, I self-insure and pay myself in an account that is always mine. It is never denied because of how or where I get sick, or how I claimed it. 

I don't consider CFAR coverage only because if I have to cancel a trip it will be for a reason that is covered under the normal coverage. 

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