Insurance Curator Choosing the right travel insurance is both a money and risk-management decision. For U.S. travelers — whether leaving from New York City, Los Angeles, Chicago or Miami — the core question is: should you buy an annual (multi-trip) policy or a single-trip plan? This guide compares costs, coverage trade-offs, and real-world scenarios to show which option typically saves more money and when it's worth paying extra.
Quick answer
- Annual (multi-trip) policies save money if you plan 2–5 short trips in a year (each under the policy’s maximum trip length), or travel frequently for business.
- Single-trip policies are cheaper when you take one major trip a year or travel for an extended period (longer than the multi-trip policy’s trip-length limit).
- Cost drivers: trip length, destination (domestic vs. international), traveler age, pre-existing conditions, and optional add-ons like Cancel For Any Reason (CFAR) or high MedEvac limits.
Sources used: NerdWallet, Forbes Advisor, InsureMyTrip (links at end).
How pricing works: the basics
- Single-trip insurance: priced as a percentage of the trip’s prepaid, non-refundable cost — typically 4%–8% for standard plans (higher for seniors or adventure sports).
- Annual (multi-trip) insurance: a flat yearly premium — typically $100–$400 per person for comprehensive plans that cover multiple trips up to a specified length (often 30–45 days per trip).
These ranges match industry guidance and price surveys. For example, NerdWallet reports the 4–8% rule for single-trip pricing, while InsureMyTrip and Forbes Advisor note typical annual plan ranges and the break-even frequency for savings. (See sources below.)
Head-to-head: common scenarios and numbers
Below are typical U.S.-market examples using realistic pricing assumptions for 2025-like market levels (ranges reflect age and coverage differences).
| Scenario | Trip type & cost | Single-trip estimate (4–8%) | Annual multi-trip estimate | Which is cheaper |
|---|---|---|---|---|
| Occasional traveler | One 10-day Europe trip, $4,000 | $160–$320 | $200–$350 | Single-trip often cheaper (if only one trip) |
| Frequent traveler | Four domestic trips, each $1,000 | 4 × ($40–$80) = $160–$320 | $150–$300 | Annual usually cheaper |
| Frequent international | Three 14-day international trips, $3,500 each | 3 × ($140–$280) = $420–$840 | $200–$450 | Annual usually cheaper |
| Long single trip | One 90-day world trip, $8,000 | $320–$640 (but may be unavailable) | Annual may not cover trips > trip-length max | Single-trip specialized or long-term plans needed |
Notes:
- Annual plan trip-length caps matter — many policies limit each covered trip to 30–45 days.
- Senior travelers (70+) can see single-trip rates over 10% of trip cost; annual plan premiums also climb substantially.
Real insurers and sample pricing (U.S. market)
These are typical starting points and illustrative examples; exact quotes vary by age, trip, and options.
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Allianz Global Assistance
- Annual multi-trip plan: starting around $175–$250 for a single adult under 50 for basic comprehensive coverage (trip-length cap usually 30–45 days).
- Single-trip plans: price is ~4–8% of trip cost. Allianz is a common option for both single and annual policies.
- Source: Allianz plan pages and market pricing surveys.
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AIG Travel Guard
- AIG’s annual plans often start in the $200–$400 range depending on coverage level.
- Single-trip plans for a typical week-long U.S. domestic trip can be $35–$120 depending on trip cost and options.
- Known for flexible add-ons like CFAR and higher evacuation limits.
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Seven Corners / IMG / World Nomads
- Offer both single-trip and annual options with competitive pricing for international travelers and specialized MedEvac/evacuation coverage.
- World Nomads is popular for adventure travelers; rates are higher when covering high-risk sports.
Why include these names? Pricing and coverage limits differ across providers; shopping multiple carriers (or using brokers like InsureMyTrip) can produce substantially different quotes for identical trips.
Sources used for insurer pricing samples: company rate/plan pages and market comparison guides (links at end).
Key coverage items that affect value (not just price)
When comparing annual vs single-trip, look beyond the premium:
- Trip cancellation/interruption limits — often expressed as a percentage of trip cost or a fixed limit per person.
- Emergency medical — U.S. travelers abroad may need $100,000+ limits; domestic medical coverage is less common because Americans rely on health insurance.
- Medical evacuation (MedEvac) — crucial for remote destinations; limits commonly range $50,000–$500,000. Without insurance, evacuations can cost tens to hundreds of thousands of dollars.
- Pre-existing condition waivers — if you need coverage for a condition, the policy’s look-back period and waiver rules differ.
- Adventure/sports coverage — skiing, diving, and other high-risk activities may be excluded from standard plans.
- Cancel For Any Reason (CFAR) — adds 20–40% to the premium but reimburses up to 50–75% of trip cost if you cancel for non-covered reasons.
For seniors or those requiring evacuation-heavy protection, check our guides on Best Insurance For Travel for Seniors: Medical Coverage, Evacuation and Age-Specific Plans and Best Insurance For Travel With Medical Evacuation: When MedEvac Is Essential and Who Offers It.
Practical decision rules — when to buy which
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Buy an annual multi-trip policy if:
- You plan 2 or more trips in 12 months and most trips are under 30–45 days.
- You travel frequently for business or have multiple short getaways from cities like New York or Los Angeles.
- You value convenience — one policy, one medical/evac limit for the year.
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Buy a single-trip policy if:
- You take one major trip per year (longer than annual plan trip-length caps).
- You’re traveling internationally for an extended period (e.g., 60+ days) or have high-cost nonrefundable prepayments.
- You need specialized coverage (e.g., CFAR, high-value cruise or ski-excursion add-ons).
Example math: when annual pays off
- Annual cost = $250
- If each single-trip costs ~$100 (typical short domestic trip), the annual plan breaks even at 2.5 trips — so at 3 trips you save ~$50.
- For international trips where single-trip is $200, annual breaks even at ~1.25 trips — so even 2 trips can justify annual.
Final checklist before you buy
- Compare exact trip-length limits on annual plans.
- Confirm MedEvac and emergency medical limits match your destination risk.
- Check age-based pricing for seniors; sometimes single-trip is cheaper for older travelers.
- Read exclusions for adventure sports or pandemic-related issues (COVID-era rules vary).
- Get multiple quotes from Allianz, AIG Travel Guard, Seven Corners, IMG, or brokers like InsureMyTrip and compare inclusions.
For deeper reading on cancellation rules and choosing CFAR, see Best Insurance For Travel: Trip Cancellation, Interruption and How to Pick the Right Policy. If you have pre-existing conditions, consult Best Insurance For Travel With Pre-Existing Conditions: Waivers, Look-Back Periods and Best Providers.
Sources and further reading
- NerdWallet — Annual vs. single-trip travel insurance pricing overview: https://www.nerdwallet.com/article/travel/annual-vs-single-trip-travel-insurance
- Forbes Advisor — When an annual travel insurance plan makes sense: https://www.forbes.com/advisor/travel-insurance/annual-vs-single-trip-travel-insurance/
- InsureMyTrip — Annual/Multi-trip vs single-trip analysis and buyer’s guide: https://www.insuremytrip.com/travel-insurance/faq/annual-vs-single-trip/
If you want, I can run a personalized cost comparison using your planned trip dates, trip length, ages, and destinations (e.g., multiple short trips from Boston or a single 3-week Europe trip from Los Angeles) to show exact quotes from Allianz, AIG Travel Guard, and Seven Corners.