Compare Annual (Multi-Trip) Travel Insurance in New Zealand

Updated 4 June 2023

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Summary

Annual travel insurance, also known as multi-trip travel insurance, offers coverage for multiple trips within a year. This policy is advantageous for regular travellers, providing the convenience of a single policy for all travels within 12 months.
Many insurers offer such policies; however, the prices and benefits can vary.
Annual policies are useful in that you only pay once for 12 months' cover, which covers an unlimited amount of trips, although each trip length will have a limit. Policies offer economies of scale in that the more you travel, the more you save, as you'll pay the same amount for one year whether or not you make two trips or 20+ etc.

To help you understand annual policies and whether or not they're right for you, our guide covers:
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Know This First: What Does an Annual Travel Insurance Policy Usually Cover?

A typical multi-trip travel insurance policy protects you against the following:

Medical expenses – Covering medical emergencies, the cost of any treatment, overnight stays and repatriation. Always disclose any pre-existing medical conditions to your insurer.
Cancellation – Cover if you need to cancel or cut short your holiday. For example, if you fall ill or test positive for COVID-19.
Missed departure or delays – Offering cover if your flights are delayed because of an insured event, for instance, adverse weather.
Stolen, lost or damaged luggage – There will be some item limits, but most policies will cover the cost of replacing your luggage.
Theft or loss of personal possessions – There will be some per-item limits, but this cover protects your valuables, money, travel documents, and other belongings.
Personal liability – This may cover the cost of any damage or injury you inadvertently cause while you're away.

Exclusions
Exclusions can vary depending on the policy. Typical exclusions (as is the case with any travel insurance policy) may include:

Medical treatment for pre-existing conditions – Extra payment is usually needed for coverage. Our guide to pre-existing conditions (LINK) has more details.
High-risk sports and activities like bungee jumping and rock climbing – A specialist policy may be required.
Claims arising from travel to a place flagged as a 'do not travel' by SafeTravel https://www.safetravel.govt.nz/ (published by the New Zealand Ministry of Foreign Affairs and Trade - MFAT).
Claims resulting from being under the influence of drugs or alcohol.
Events such as terrorism, natural disasters, and civil unrest.

Pros and Cons of a Multi-Trip Policy

Pros:

Convenience - You can travel without needing to organise insurance each time.
Cost-effectiveness – If you travel frequently, it could be cheaper than paying for individual single-trip policies.
Suitability – Different policies target different regions, so you can tailor your coverage to your travel plans.
Flexibility – Insurance providers offer a range of cover options, so you can choose a policy that suits your needs.

Peace of Mind: With an annual policy, you are covered for all trips you make during a year, providing reassurance that you're protected, no matter how spontaneously you decide to travel.
Family Inclusion: Some policies may offer the inclusion of children at no extra cost, making it economical for family trips.
Business Travel Coverage: If you often travel for work, a multi-trip policy ensures you're always covered without needing new coverage for each trip.
Broad Geographical Coverage: Most annual policies cover a wide range of geographical regions, allowing you to travel globally under a single plan.
Coverage Continuity: With an annual multi-trip policy, there's no risk of gaps in coverage, as might happen if you purchase single-trip policies multiple times a year.
Emergency Medical Coverage: This can be especially valuable if you travel to countries with high healthcare costs.
Cancellation Coverage: If you need to cancel or modify any trips within the policy period, you can get reimbursed under the policy terms.

Cons:

Limited Trip Duration: Annual policies often limit the duration of a single trip, typically to 30-90 days. If you plan a longer holiday, you might need additional coverage.
Age Restrictions: Some insurers impose age limits on annual policies, which may not be suitable for older travellers.
Medical Condition Coverage: Annual policies may not provide coverage for certain pre-existing medical conditions, or the coverage may come at an additional cost.
Limited Adventure Sports Coverage: Risky activities or adventure sports may not be covered under standard annual policies.
Upfront Cost: Although cost-effective in the long run, an annual policy requires a higher upfront payment than single-trip policies.
Limited Coverage for High-Risk Activities: Some annual policies may not cover high-risk activities like skiing, diving, or mountaineering unless you purchase an additional rider.
No Coverage for Trips Booked Last Minute: Some policies require that the trip be booked a certain number of days in advance to be covered.
Limits on Valuables: There might be lower limits on the payout for lost or stolen valuables compared to single-trip policies.

Comparing the Costs and Cover of Annual Travel Insurance Policies

One size doesn't fit all when considering an annual travel insurance policy. To help you understand how much an annual policy might cost, we have crafted a few scenarios based on common types of policyholders. We aim to demonstrate how different factors can influence the pricing of annual travel insurance policies.

Please note that these examples are hypothetical and actual premiums can vary greatly depending on several factors such as the specific insurer, the coverage chosen, personal health history, and other risk factors.

Our sample pricing aims to provide a baseline understanding; getting personalised quotes from multiple insurers is always recommended.

Our example travellers:

Frequent Business Traveller: Consider John, a 45-year-old executive taking six international business trips annually. We've assumed that John is in good health, travels to relatively safe destinations, and prefers a policy with high coverage limits for medical, cancellation, and baggage loss.
Travel-Loving Family: We have the Smith family, a family of four (two adults in their 30s and two children under 10). They typically go on two domestic trips and two international trips each year. We've assumed that they are in good health, seek comprehensive coverage, and prefer family-friendly features like childcare benefits and family emergency coverage.
Gap Year Student: Consider Lucy, a 22-year-old university student planning to travel through Asia and Europe for a gap year. We've assumed that Lucy is in good health, prefers a policy with a low excess, and seeks added coverage for adventure activities.
Retiree Adventurers: Now we have the Browns, a couple in their early 60s who plan to spend their first year of retirement visiting Europe, America, and Australia. We've assumed that they are in fairly good health for their age, prefer a comprehensive policy, and want high medical coverage given their age.
Digital Nomad: Consider Jimmy, a 33-year-old digital nomad who spends his time between countries in Southeast Asia. We've assumed that Jimmy is in good health, prefers a policy that covers remote work equipment, and seeks additional coverage for potential evacuation.
Backpacker: Finally, we have Emily, a 25-year-old planning to spend the next year backpacking through South America. We've assumed that Emily is in good health, is travelling on a budget, and prefers a policy that includes coverage for adventure activities and possible travel disruptions.

Remember, these are just examples. It's always best to contact insurance providers directly or use online tools to get personalised quotes based on your specific circumstances and travel plans. Always read the policy documentation carefully to understand what is covered and what is not before deciding.

Our comparison looks at the following:

Policy Name/Provider: The name of the insurance policy and the company providing it.
Maximum Age Limit: Some policies have an age limit for coverage.
Trip Duration Limit: The maximum length of any one trip covered under the annual policy.
Destinations Covered: Whether the policy covers domestic, international, or specific regions.
Medical Cover: The maximum amount the policy will pay for medical expenses.
Cancellation Cover: The maximum amount you can claim if you have to cancel or curtail your trip.
Personal Belongings & Baggage Cover: The maximum amount you can claim for lost, stolen, or damaged personal belongings and baggage.
Personal Liability: The maximum amount you can claim for legal liability if you injure someone or damage their property.
Travel Delay Cover: Whether the policy offers compensation if your travel is delayed and the maximum amount you can claim.
Excess: The amount you must pay out-of-pocket before the insurance pays out.
Price: The annual premium for the policy.

Frequently Asked Questions

What should I consider when choosing a travel insurance provider?

You should consider the insurance provider's reputation, the coverage's cost and comprehensiveness, customer service, and their claims process. Our sample pricing uses trusted insurers - we advise you to be cautious of online adverts or websites where the insurers are unknown or unproven.

Is my destination covered?

If you're purchasing worldwide coverage, almost all countries should be covered unless explicitly excluded. Ensure that the countries you plan to visit are included in your coverage. There's no point in having an annual policy for "Worldwide, excluding USA and Japan" if, for example, your plans may include a visit to either country within the year.

Does an annual policy include coverage for adventure sports?

New Zealanders love adventure, and many travel for skiing, snowboarding, or water sports. If you plan on doing any adventure sports during your travels, ensure your policy covers it. Some policies exclude high-risk activities unless you pay extra.

What about pre-existing conditions?

If you have pre-existing medical conditions, disclosing them to your insurer is important. Otherwise, you might not be covered if you need to make a claim related to your condition. Our guide to getting travel insurance for pre-existing medical conditions (LINK) has more details.

How do travel alerts or warnings affect my coverage?

Some policies may not cover trips to destinations where a travel alert or warning has been issued. Check the policy for any exclusions related to travel alerts or warnings. You can check all of the latest advisories on MFAT's Safe Travel website https://www.safetravel.govt.nz/

How long can each trip be on an annual multi-trip policy?

The maximum length of each trip will depend on your specific policy. For some insurers, each trip could be limited to 30, 45 or 60 days, for example. Always check the maximum duration of your intended travel insurance policy.

Is there an age limit on annual multi-trip travel insurance?

Yes - all insurers have an upper age limit on their travel insurance policies or may charge more for older travellers. Check the age limit and the premiums for your age group.

How does the claims process work?

You need to know how to claim if something goes wrong. Understand the insurer's claims process, what documentation you need, and how long it typically takes to process a claim. For example, you can see the claims process for Southern Cross, AA Travel and Tower. LINK

What isn't covered by my travel insurance?

It's just as important to understand what isn't covered by your insurance as what is. For example, some insurers might not cover certain high-risk activities, claims resulting from intoxication or non-disclosure of pre-existing conditions. It's always recommended to read the fine print carefully.

What if my travel plans change in the middle of the policy period?

Most annual travel insurance policies offer the flexibility to accommodate changes in your travel plans. However, significant changes, like travelling to a country not covered in your original policy, may require updating your coverage.

Can I cancel my annual policy if I no longer need it?

If you stop going overseas within the 12 months you prepaid your insurance, travel insurers do not typically offer refunds for unused portions of annual or multi-trip policies. This is largely due to the nature of insurance itself. When you purchase a policy, you're paying for the insurer to take on the risk associated with potential future claims during the policy period.

However, there may be certain situations where a refund or partial refund may be possible. For example, many insurance providers might offer a cooling-off period, typically around 14 days after the purchase, during which you may cancel your policy for any reason and receive a full refund, provided you haven't started your trip or made a claim.

Be aware:

Some insurers may consider a partial refund in special circumstances, such as significant medical conditions preventing you from travelling for the remainder of the policy period. This is usually assessed on a case-by-case basis.
As always, it's vital to read the terms and conditions of your specific policy to understand what is and isn't covered, including refund policies. If you're unsure, contact your insurer directly for clarification.
Travel insurance is designed to protect you against unforeseen circumstances and risks, and even if you haven't claimed during your policy period, it has provided you with peace of mind and financial protection during your trips.

How many trips can I take with an annual policy?

Typically, you can take an unlimited number of trips within the year. The limitation is usually on the length of each trip, often capped at 30, 60, or 90 days.

Can I extend the maximum trip length on my annual policy?

In most cases, no - you'll need to buy a new policy for either 12 months or the duration you need.

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