When the vacation falls through

No booking without an offer of travel cancellation insurance – but this is not always advisable, and a price comparison saves money.

Vacation is part of the standard: 18 percent of Germans travel four times a year, another 39 percent indulge in the luxury two to three times a year, and almost one in four takes a one-time break each year. Only around 18 percent are foregoing a trip, reports the Federal Statistical Office – usually because the financial resources are lacking.

Because, as the savings banks have determined, Germans spend a certain amount per person The holidays in 2024 will cost an average of 1.544 euros. And to ensure the money is invested safely, many people take out a Travel insurance to avoid throwing money away in case of a cancellation.

Such a policy is not always advisable. It can "only be useful for expensive trips or holidays with children," says the expert. Consumer advice centre and also points out that a Travel baggage insurance is generally unnecessary. The reason: relatively high costs with relatively little insurance coverage. Only trip cancellation insurance is a sensible addition.

What an insurance company can do

A trip cancellation insurance policy combined with a trip interruption insurance policy then steps in financially when the holidaymakers are unable to travel.
- unable to start a trip or only able to start it late,
- have to cut the trip short,
- to return late from a trip,
- unable to use travel services such as rental cars or excursions.

Insurance: Ombudsman resolves disputes free of charge

Insured reasons include, for example, serious illnesses, accidents, deaths in the family, or professional constraints. Then the insurance company pays the contractually agreed sum for all insured persons. If the insured have agreed to a deductible, the sum will of course be reduced by this amount. And: The insured event must have actually occurred unexpectedly and make it unreasonable for the insured to start or continue the journey.

The latter point in particular leads to disputes about whether the insurance company will pay. An ombudsman could help here, mediating the dispute, provided the insurance company participates in such a procedure. The advantage: The procedure is free of charge, and for disputes under €10.000, the insurance company must abide by the ombudsman's decision, according to the consumer advice center. For higher amounts, there is only a recommendation; as a consumer, you are generally not bound by it and can try to enforce higher payments through legal action if necessary.

Anyone taking out a policy should do so early, at least 30 days before departure – and ideally independently of the chosen tour operator. This allows you to achieve better terms and conditions. Those who take several holidays a year should also consider an annual policy: it is usually cheaper and the sum insured should be at least as high as the cost of the most expensive trip. 

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