Travel insurance: Your comprehensive guide to worry-free travel
16.04.25
7
Minutes
Katrin Straub
Managing Director at nextsure
An unexpected illness or a lost suitcase can quickly make a holiday expensive. The right travel insurance protects you from high costs and ensures peace of mind from the very start. Find out which cover is right for your next trip.
The topic in brief and concise terms
Overseas health insurance is essential for practically every trip abroad, as statutory health insurance often only provides basic cover and does not cover important benefits such as medical repatriation.
Travel cancellation and trip interruption insurance are particularly worthwhile for expensive trips, for families with children and for older travellers, helping to avoid high cancellation charges or additional costs in the event of unforeseen incidents.
Compare offers carefully, paying attention to the scope of cover, sum insured, excesses and cancellation periods, to find the optimal travel insurance cover for your needs.
Understanding travel insurance: defining necessity and benefits
Travel insurance steps in when unforeseen events throw your holiday plans into disarray. Whether it’s necessary depends heavily on your travel costs and personal risk factors. High cancellation fees, which can amount to up to one hundred per cent of the travel price, often make cover worthwhile. Especially for expensive trips or for families with children, the protection can quickly pay for itself. Comprehensive travel insurance offers financial security in many eventualities. Bear in mind that without insurance, costs of several thousand euros can quickly arise. The decision for or against travel insurance should therefore be carefully considered.
Identifying key components: An overview of the most important types of travel insurance
There are various types of travel insurance that cover different risks. The most important include travel cancellation insurance, travel interruption insurance and overseas health insurance. Travel cancellation insurance covers cancellation costs if, for example, you are unable to take your trip due to an unexpected serious illness. Travel cancellation insurance is particularly recommended for early bookings and high travel costs. Travel interruption insurance applies if you have to cut short a trip you have already started and, for example, reimburses costs for unused travel services. The overseas health insurance covers medical costs abroad, which are often only partially covered, or not covered at all, by statutory health insurance. These three components often form the basis of solid travel cover.
Additional cover for specific needs
In addition to the core components, there are other useful travel insurance policies. Baggage insurance can be worthwhile if you are travelling with valuable luggage, as it provides cover in the event of loss or damage. Travel accident insurance offers financial support in the event of accidents during your trip that result in disability or death. For rental cars abroad, a specific policy can be useful to cover excesses in the event of damage. Many insurers offer packages that combine several of these benefits, often at a lower price than taking out individual policies. Assess your individual needs to put together the right cover. Choosing the right components optimises your cover and avoids unnecessary costs.
Conduct a cost-benefit analysis: When does travel insurance pay off?
The cost of travel insurance varies greatly and depends on several factors. These include the price of the trip, the duration of the trip, the destination and the age of the insured persons. Cancellation insurance for a trip worth EUR 1,500 can, for example, cost between EUR 50 and EUR 100. The benefit often only becomes apparent in the event of a claim, but can then save considerable costs. For example, cancellation costs for a last-minute cancellation can quickly reach 80% of the trip price. Early cover is often cheaper and recommended. Consider whether the premium is proportionate to the potential financial risks. For frequent travellers, an annual policy covering all trips within a year may be worthwhile.
Practical examples: When the insurance pays out
Imagine booking a long-haul trip for EUR 3,000 and having to cancel it two weeks before departure because of an unexpected operation. Without cancellation insurance, cancellation costs of up to 90% could apply, i.e. EUR 2,700. With insurance, these costs would be covered, less any excess. Another example: a medical emergency abroad involving hospitalisation and repatriation can quickly cost tens of thousands of euros. Overseas health insurance covers these costs, which are often not covered by the statutory health insurance fund. Even a single claim can exceed the premiums paid over many years. These examples illustrate the financial protection that travel insurance can provide.
Consider specific target groups: travel insurance for families and people with chronic illnesses
Families with children often benefit particularly from travel insurance. The risk that a family member falls ill shortly before or during the trip is statistically higher. Many providers offer special family rates, which are cheaper than several individual policies and often cover up to seven children. A annual travel insurance policy for families can pay for itself after just two trips a year. Make sure that cover also applies if family members travel separately. The definition of “family” can vary, so check the conditions carefully, especially with blended families. Another advantage is that carers for children are often covered too, if the parents fall ill.
Travelling with pre-existing conditions: what you need to bear in mind
For people with chronic conditions, travel insurance is particularly important, but taking out cover can be more complex. It is advisable to have your fitness to travel confirmed by a doctor before you set off and to inform the insurer of this. Many insurers exclude cover for treatment of pre-existing conditions if these were foreseeable. However, a sudden worsening of a chronic condition is often covered. Be sure to clarify in advance with the insurer which benefits are covered in the event of a worsening of your chronic condition. Some insurers offer special tariffs or optional add-ons for people with chronic conditions. Open communication with the insurer and the treating doctor is crucial here for comprehensive cover.
The following points are particularly relevant for travellers with chronic conditions:
Obtaining a medical certificate confirming fitness to travel before the trip.
Checking the policy terms regarding pre-existing conditions.
Clarifying whether a sudden worsening of the chronic condition is covered.
Information about medical care options at the holiday destination.
Taking sufficient medication and relevant medical documents.
These preparations help ensure you are well covered in an emergency.
Use expert knowledge: Important aspects to consider when signing a contract
When taking out travel insurance, there are several important points to bear in mind to ensure optimum cover. Read the policy terms and conditions (AVB) carefully, especially the exclusions and benefit requirements. Pay attention to the amount of the sum insured; it should at least correspond to the price of the trip to avoid underinsurance. Policies without an excess are often more expensive, but they save you additional costs in the event of a claim. Check whether the insurer participates in an ombudsman’s conciliation procedure, which can be helpful in the event of disputes. Good travel health insurance for overseas trips, for example, should also cover medically sensible repatriation, not just medically necessary repatriation. Compare offers from different providers, as benefits and premiums can vary considerably.
Keep an eye on deadlines and cancellation terms
The time at which you take out trip cancellation insurance is often crucial. Many insurers require cover to be arranged within fourteen to thirty days of booking the trip. For last-minute bookings, the insurance often has to be taken out on the same day. Annual policies often renew automatically if they are not cancelled within the required period; make a note of the cancellation deadlines. Find out exactly about the reporting obligations in the event of a claim; a late notification can lead to reduced benefits. Keep all relevant documents such as booking confirmations and the insurance policy safe. Careful checking of these aspects will ensure you receive the full benefit in the event of a claim.
Statutory vs Private: Understanding health insurance cover abroad
Statutory health insurance (GKV) offers basic cover within the EU and in countries with social security agreements. However, this cover often only corresponds to the level of benefits in the respective destination country and does not cover all costs. Private medical treatment or medical repatriation to Germany is generally not covered by the GKV. Costs of several tens of thousands of euros can quickly arise here. Private travel health insurance closes these gaps and is therefore strongly recommended even for travel within Europe. Outside Europe, private travel health insurance is essential anyway, as the GKV usually provides no benefits there at all. The cost of annual travel health insurance is often low, starting at around ten euros per person.
Know the differences in benefits and important clauses
Private travel health insurance policies often offer significantly more extensive benefits than the GKV abroad. These include free choice of doctor and hospital, cover for dental treatment and the aforementioned medical repatriation. Pay attention to the clause on “medically sensible” repatriation, as “medically necessary” is interpreted very restrictively. Also check whether the insurer pays upfront or only covers the difference compared with the GKV. The duration of cover per trip is usually limited to six to eight weeks for annual policies. There are special long-term policies for longer stays abroad. A detailed comparison of the terms is crucial for optimal protection.
Important differences and aspects include:
Cover for private clinics and doctors.
Scope of dental treatment benefits.
Conditions for medical repatriation (sensible vs necessary).
Maximum trip duration for annual policies.
Exclusion of benefits in the event of pandemics or travel warnings.
Rules for pre-existing conditions.
These details can make a big difference in an emergency.
The question of whether you need travel insurance cannot be answered in general terms, but for most travellers the answer is clearly “yes”. The cost of good cover is often low compared with the potential financial risks. A careful assessment of your own needs and a comparison of different offers are essential. In particular, overseas medical insurance is a must for every trip abroad. Cancellation and trip curtailment insurance are especially recommended for expensive or long-term planned trips, as well as for families and older people. Remember that good preparation and the right insurance cover make a significant contribution to a relaxing holiday. With the right partner at your side, you can plan your trip with confidence.
Request your individual risk analysis now: Have your insurance situation reviewed free of charge and receive concrete suggestions for improvement.
More useful links
The Foreign Office provides comprehensive travel and safety advice, including important health information for travellers.
Specific health information for individual destinations can also be found on the pages of the Foreign Office.
The Federal Statistical Office (Destatis) provides detailed data and statistics on Germany’s hospitality and tourism industry.
Current press releases and further information on tourism development in Germany are available on the website of Destatis.
The Federal Ministry of Health provides information on health insurance cover for trips abroad and important aspects of healthcare abroad.
The Centre for Travel Medicine (CRM) offers comprehensive travel medicine advice, vaccination information and up-to-date health advice for travellers worldwide.
FAQ
What does travel cancellation insurance cover?
It covers the cancellation costs if you are unable to take a booked trip for insured reasons. These reasons often include unexpected serious illness, an accident, the death of a close relative or loss of employment.
Is travel interruption insurance worthwhile?
Yes, it makes sense, as it reimburses costs incurred if you have to cut short a trip you have already started for insured reasons, e.g. for unused travel services or additional return travel costs.
Does my credit card cover travel insurance?
Some credit cards include travel insurance. However, check the scope and conditions carefully, as the cover is often tied to using the card, has lower cover limits or includes high excesses.
What should be considered when choosing family travel insurance?
Look out for family rates, which are often cheaper. Clarify how many children are covered, up to what age, and whether the cover also applies to family members travelling separately.
Do I need travel health insurance for trips within the EU?
Yes, travel health insurance is also highly recommended within the EU. Statutory health insurance often only covers basic costs and no medical repatriation.
What happens if I have to cancel a trip because of coronavirus?
Many standard travel insurance policies exclude pandemics. However, some providers offer special Covid-19 add-ons or have adjusted their terms and conditions. Check this carefully before taking out a policy.
