As a rule, travel cancellation insurance only reimburses you the costs incurred for cancelling a booked trip if

• the trip is cancelled before it starts,
• the trip is cancelled because of an event (reason for cancellation) that is listed in the insurance conditions,
• the event which has led to the cancellation is so serious that you cannot reasonably be expected to start the trip and
• the event occurred unexpectedly.

The scope of reasons for cancellation covered may vary depending on the insurer and the premium tariff. Before taking out the policy, you should therefore check which benefits are included in the insurance you have chosen and whether it covers all relevant events. You should also make sure that the cover includes all persons on whom the decision to start the trip depends (referred to as “persons at risk”).

Travel portals often offer you the choice to “add” travel cancellation insurance directly after the booking, i.e. to take out the policy directly during the booking process. However, you are not obliged to take out insurance with the company suggested by the portal – other offers may be less expensive or have a greater scope of benefits.

Remember that you may already have such insurance, for example under an annual contract that is automatically renewed every year or via your credit card or an automobile club. Save yourself from paying twice for the same service and check before taking out a new policy.

If you are sure that you need this kind of cover and want to take out travel cancellation insurance, you should look into the insurance policies available on the market – ideally before booking the trip. Some companies also offer insurance within a certain period of time after completion of the booking process.

What is covered by travel cancellation insurance?

The insurer is only obliged to reimburse you the cancellation costs if you cancel your trip for a reason that is listed in the General Insurance Conditions (Allgemeine Versicherungsbedingungen – AVB).

The following events are usually covered:

• Unexpected serious illness
• Death of a family member
• Serious accident
• Pregnancy
• Unexpected loss of job
• Unexpected adverse reaction to a vaccination

Some insurance policies also cover other events, such as filing for divorce or adopting a child.

The specific reasons for trip cancellation that are covered are listed in the respective contract conditions. If they are difficult to understand, ask the insurer to explain exactly what is covered.

The reason for cancellation can also be an event involving a person close to the policyholder. For example, if your child becomes seriously ill shortly before the start of your trip, you will not be able to take a planned family holiday. In this case, the insurer will only reimburse the cancellation costs if your child is listed as a “person at risk” in your insurance policy. Therefore, before taking out the policy, you should check that all relevant persons at risk are included.

If you have already taken out a policy and are unsure about it, ask the insurer or the provider of the policy for details.

What is not covered by travel cancellation insurance?

The General Insurance Conditions for travel cancellation insurance may contain exclusions, for example in relation to the worsening of pre-existing conditions where the illness started before the trip was booked. Travel cancellation insurance also does not cover cases where a trip cannot be taken because of a deliberate act or force majeure (for example, strike or insolvency of a tour operator). Fear of terrorist attacks is usually not included in the cover. However, there are individual providers who also offer insurance for travel cancellation due to terrorist attacks.

You can find out more about possible exclusions from the German Insurance Association (Gesamtverband der Deutschen Versicherungswirtschaft e.V. – GDV). For specific information on the scope of benefits of your (chosen) insurance policy, please ask your insurer.

Travel cancellation insurance provides reimbursement of incurred costs only if you cancel your trip before it starts. From the insurer’s point of view, a trip is considered to have started as soon as the first booked travel service is used.

This includes, for example:

• for air travel – check-in,
• for sea voyages – check-in,
• for bus tours – boarding,
• for train journeys – boarding,
• for car journeys – picking up a rental car or a camper van.

If a transfer, for example train travel to the airport, is an integral part of the overall trip, the trip begins with the start of the transfer.

Cancellation costs incurred after the trip has started (for example if the trip is interrupted because of illness) are not covered by travel cancellation insurance. For such an event, you will need travel interruption insurance. Some insurers offer this cover together with their travel cancellation insurance.

How can I avoid cancellation costs if I do not have insurance cover?

You can avoid the cancellation costs if you find someone who is willing to take the trip in your place. In this case, please contact your tour operator. However, if your replacement fails to pay, you will still be liable for the travel costs. There may be additional fees associated with the transfer of travel documents (tickets, vouchers, etc.) subject to a separate agreement. Please ask your tour operator or the operating companies about this.

If you organise your own trip by combining different elements (for example, you book a flight with an airline and then a room directly with a hotel), you can sometimes choose flexible tickets, or offers that can be cancelled or changed free of charge. However, pay attention to deadlines and the relevant contract conditions.