Why I Buy Annual Travel Insurance, Even With Great Credit Card Perks

It may sound silly to purchase a travel insurance policy since I have a handful of travel credit cards in my wallet that provide trip delay and cancellation coverage. However, I think frequent travelers like myself should still consider purchasing an annual policy, especially if they juggle multiple credit cards.

However, I started buying per-trip policies during the pandemic to protect nonrefundable expenses, as I didn’t want to deal with multiple credit card claims if things went wrong.

Earlier this year, I purchased an Allianz AllTrips annual travel insurance policy. This way, I don’t need to buy a new policy before every trip. I’m glad I did this, because my annual policy has already paid for itself after I got food poisoning before a now-cancelled trip to Europe in June.

Here’s why I decided to purchase an annual travel insurance policy — and why frequent travelers might want to.

No Need To Juggle Credit Card Travel Protections

I have more than 20 travel credit cards at any given time, and I book different types of travel with different cards.

For example, I use The Platinum Card^® from American Express to book flights and the Chase Sapphire Reserve^® to book hotels. However, depending on where I’m staying or the airline I’m flying, I may use a cobranded credit card instead for extra perks and rewards.

This complicates things when using credit card travel protections if things go wrong. I need to remember which card I used to book each type of travel and which protections are offered by said card. And if I need to cancel an entire trip for a covered reason, I would need to open multiple claims across the cards I used to book my travel.

Having an annual travel insurance policy means I don’t need to think about any of this when it’s time to file a claim. Instead, I can file a single claim with my travel insurance policy.

You Can Customize Your Coverage

Another benefit of buying an annual travel insurance policy is the ability to customize your policy and its coverage limits.

For example, if you know you’ll book an expensive luxury trip this year, you might add more trip cancellation and interruption coverage. Meanwhile, those concerned about falling ill on the road may opt for a plan with high medical and medical evacuation limits.

You can add other coverage to your plan, like rental car damage protection and coverage for business equipment like laptops. You may even be able to add “Cancel for Any Reason” (CFAR) coverage to your policy, which entitles travelers to a portion of their nonrefundable expenses regardless of why they cancel their trip.

No matter which travel insurance coverage you purchase, make sure you know what’s covered. Some plans may include preexisting coverage, while others may not. Likewise, covered reasons for canceling a trip may vary based on your plan.

Annual Travel Insurance Policies Aren’t Overly Expensive

I was surprised at how cheap buying an annual travel insurance was. When I purchased my Allianz AllTrips Basic policy, the company’s entry-level policy, the annual premium was $249 as a New York State resident.

My plan includes $2,000 in trip cancellation coverage, $25,000 in emergency medical coverage, up to $600 in trip delay coverage ($200 per day), and various other protections. These aren’t high limits by any means, but with such a low annual premium, it covers just enough to save me money if something comes up.

As mentioned, I had to cancel a trip when I got sick before a trip to Europe earlier this summer. I had roughly $800 in nonrefundable expenses, including a prepaid hotel stay, a one-way economy flight, and airport parking. I submitted a claim to Allianz and was paid out via bank transfer days later.

Final Thoughts

If you’re a frequent traveler, credit card travel insurance may not be enough, and it’s worth considering an annual travel insurance policy. These policies cover you when things go wrong — whether that’s an emergency room visit on the road, or having to cancel a trip before you depart if you get sick.

That said, make sure you know the ins-and-outs of your policy before you buy it. What’s covered and coverage amounts vary between travel insurance policies. Shop around to find the plan that best fits you and your travel habits.