Anyone who wants to insure against an expensive vacation can take out travel cancellation insurance. But which one? A new study sheds light on this.
The summer holidays are approaching and many families have already booked their vacation. But unexpected events can ruin your vacation. To avoid being stuck with high costs, it is advisable to take out travel cancellation insurance. However, you need to do it quickly.
You should apply for the protection at least 30 days before the start of the trip so that it is valid. This is what the financial advisor “Finanztip” points out. The portal has also examined 16 different travel insurance policies and recommends the most effective tariffs.
The LVM tariffs performed particularly well. For individual trips, the travel cancellation insurance from Signal Iduna is recommended. For annual contracts, the insurers Hanse Merkur and Care Concept were convincing.
According to a survey by the Foundation for Future Issues, families spent an average of more than 6,000 euros on their main vacation in 2023. “Travel cancellation insurance then pays the resulting cancellation fees and additional costs,” explains Henriette Neubert, insurance expert at “Finanztip”.
This applies in the event of serious illness, accidents or the death of a relative, as well as in the event of job loss or the need to retake important exams. You will also receive a refund if public transport is delayed by more than two hours and prevents the planned departure flight, train or boat journey. You can read more about when travel cancellation insurance pays out here.
However, travel cancellation insurance is not worthwhile in all cases. The decisive factors are the type of trip, the cost of the trip and possible cancellation costs. “Travel cancellation insurance can be worthwhile, especially for expensive package trips such as a Caribbean cruise,” says Neubert. She recommends the insurance especially for families with children and senior citizens, as they are more likely to cancel.
However, not all events are covered by every insurance policy: While illness or the death of a close relative is always insured, mental illness or the loss of a passport, for example, are not always considered valid reasons for cancellation.
Interested parties should definitely read the small print before taking out insurance to find out what their insurance covers and what it does not.
In addition, the costs of such insurance can vary. “In our test, insurance for a trip to the Dominican Republic for a family of three and a travel price of 5,000 euros cost a premium of 136 euros,” she explains.
In its evaluation, “Finanztip” only recommends tariffs that also apply in the event of an early termination of vacation at the vacation destination. Travelers should be particularly cautious with offers from airlines, booking portals and credit card providers, as well as with combined offers such as luggage or international health insurance.