Annual plans often fall short on value, new Squaremouth report finds

A new report from US travel insurance comparison site Squaremouth has revealed how annual travel insurance policies stack up against single-trip plans in both cost and coverage – and why annual plans aren’t always the best value for every traveller.

According to The Annual Travel Insurance Cost Report, the average annual policy costs US$298, offering medical-only coverage for as little as $0.82 a day when spread over a year. In comparison, a single-trip medical plan averages $87 per trip, or around $5 per day. For frequent travellers seeking basic medical protection, an annual plan can therefore prove highly cost-effective.

Comprehensive annual plans – which include both medical and cancellation coverage – average $538, Squaremouth said.

However, single-trip policies may provide higher per-trip benefits. Squaremouth noted that while some annual comprehensive plans include $5,000–$10,000 in cancellation cover for the entire year, single-trip plans often offer this amount per trip.

Age remains a key pricing factor. Travellers aged 70 and over pay roughly 48% more for annual cover than those aged 22–34, with average annual costs of $354 compared to $239. For older travellers, comparing standard variable-rate plans with flat-rate annual options, such as those offered by Trawick, may lead to savings.

Annual plans can simplify travel planning by removing the need to purchase multiple single-trip policies. A traveller taking four trips per year could pay around $348 in total for single-trip medical cover, compared with $298 for a year-long plan.

However, Squaremouth’s Senior Director of Operations, Chrissy Valdez, warned that annual plans came with trade-offs. “While annual travel insurance policies can be convenient and cost-effective for frequent travellers, these plans have drawbacks,” she said. “Annual policies are rarely ‘unlimited’. They often have limited trip lengths, capped trip counts, and stricter requirements for pre-existing conditions.”

Valdez added that annual medical policies could work well for frequent travellers who already have credit card cancellation benefits. “An annual plan helps fill that gap by providing year-round medical coverage for multiple trips, without the need to purchase a new policy each time you travel,” she said.

Pearson Ham Group recently published its latest analysis of UK travel insurance premiums, comparing summer 2025 with summer 2024.