Good planning protects you from high cancellation costs if you don’t go on a trip – but only if the trip cancellation insurance is really suitable.
What is covered – and where does it quickly get expensive?
Travel cancellation insurance is intended to do one thing above all else: cushion financial losses if a trip cannot be started at short notice. Depending on the tariff, it covers cancellation and, if necessary, rebooking costs if an unexpected, insured reason makes it impossible to start the trip. A clear distinction must be made from travel interruption insurance, which only takes effect after the trip has begun, for example in the event of a serious illness or death in close family circles and the resulting additional or return travel costs, as the ADAC explains.
The typical insured triggers include serious, unexpected illnesses, accidental injuries or death. Depending on the contract, non-medical reasons such as unexpected job loss, significant damage to property or mandatory official obligations may also be included. The decisive factor for entitlement to benefits is not the personal assessment of the situation, but rather whether the specific reason for withdrawal is stated in the general insurance conditions and can be proven. The ADAC explains that this is exactly where unexpected cost traps often arise in practice.
Benefit exclusions: The most common pitfalls in the “small print”
Many disappointments arise not because of a lack of a policy, but because of false expectations of the scope of services. The ADAC points out that pre-existing illnesses are particularly critical: they are often only insured if there is an unexpected, severe deterioration and the respective tariff expressly provides for this. Cancellations due to fear, uncertainty or lack of desire to travel are also not covered. Even foreseeable events such as known strikes or long-announced storms are generally not considered an insured event. The same applies if damage is due to gross negligence or intent.
There is also no insurance cover when traveling to countries with official travel warnings, for example due to war, terrorism or ongoing strikes. The Swiss insurer Zurich, among others, is drawing attention to this. In practice, cases involving chronic illnesses are particularly prone to conflict. According to experience from consumer advice, there is often a dispute about whether the course of the illness can actually be classified as unexpected. The burden of proof lies with the insured, which can make it more difficult to enforce claims, as Pharmacy Umschau reports.
Tariff choice, costs, credit card: This is how you get price-performance under control
The deductible plays a central role when choosing a tariff. Personal contributions of around 20 percent are common in the event of a claim. According to Pharmacy Umschau, such a deductible is often not worth it because the difference in premiums compared to tariffs without a deductible is often small. Especially for expensive trips, the personal contribution can quickly amount to several hundred euros and significantly reduce the actual benefit of the insurance.
The question of a one-time policy or an annual contract also has noticeable financial implications. The ADAC points out that annual contracts are particularly worthwhile for travelers who travel more than once a year. They cover all trips of the insured person within the insurance year, usually with a limit on the maximum travel duration per trip. On the other hand, if you are only planning a single trip, you can take a one-off insurance that is suitable, but often more expensive. Regardless of the model, the following applies: If the agreed insured sum is lower than the actual travel price, there is underinsurance – then the insurer will only reimburse damages proportionately.
Particular caution is advised with credit card insurance and insurance packages sold directly with it. According to the Lower Saxony Consumer Center, these solutions are often narrower than they appear at first glance. The protection is often linked to conditions, such as that the trip has been paid for in full with the card, or high deductibles and restricted groups of people apply. Combination packages that are offered when booking a trip are also difficult to check in peace and quiet and rarely exactly match individual needs. A separate conclusion after comparing the conditions usually offers a better cost-benefit ratio.
Deadlines, damage event, law: So that the claim does not fail due to formalities
When taking out travel cancellation insurance, deadlines play a larger role than many people realize. According to the Lower Saxony consumer advice center, it is often possible to take out a contract up to 30 days before departure. If you book at short notice, you have to act much faster: for last-minute trips, protection is usually only available on the day of booking or a few days later.
If a claim occurs, speed and clear evidence are what count. The ADAC emphasizes that the reason for cancellation must be proven, for example by a medical certificate or a letter of cancellation, and that the insurer must be informed in a timely manner. At the same time, there is an obligation to mitigate damage: the earlier you cancel, the lower the costs will be. According to the experience of Pharmacy Umschau, some insurers require a special certificate of incapacity to travel instead of a simple certificate for medical reasons. The costs are not always borne by the insurer.
If the provider does not pay, a phased approach is recommended. The Pharmacy Umschau describes the usual route via the responsible clerk, a written request for benefits and then the involvement of the insurance ombudsman up to and including a lawsuit. The Lower Saxony Consumer Center also advises making sure that the insurer takes part in the ombudsman procedure when taking out the insurance. Up to an amount in dispute of 10,000 euros, the decision is binding for the company.
Supreme court decisions of the Federal Court of Justice are also legally relevant. The court made it clear that, under certain conditions, the value of bonus miles used must also be replaced if they expire as a result of an insured cancellation. The Federal Court of Justice has also decided that pandemic clauses in travel insurance can generally be effective provided they are formulated transparently. At these points, when publishing later, it must be checked whether the underlying decisions are still current or need to be adjusted.
Editorial team finanzen.net
