The trip is planned thoroughly and carefully, and yet unforeseen circumstances turn it into a fiasco. It's a good thing you got travel insurance. But now kick Murphys Law in action: a tiny paragraph in the fine print destroys hope for financial compensation. Of course, this article cannot prevent a trip from failing, but one or two tips may help you choose a suitable insurance policy. Such insurances are usually offered when booking a package tour; for individual trips, it is advisable to at least consider travel health insurance.
Types of travel insurance
The types of insurance relate to the events to be insured
Luggage insurance
Actually, the luggage should go on the journey with its owner. But all of a sudden they part ways: essential parts are suddenly nowhere to be found or end up at the wrong airport. Sometimes the suitcase changes hands spontaneously. Or a suitcase is damaged on the way.
In such cases, luggage insurance should help. They are usually offered together with other insurance companies. The sum insured is often € 1,000 per person. Laptops and cameras are only insured up to 50% of the sum insured. Some companies only reimburse the current value in the event of damage. Cash is not included in the insurance, and the same often applies to cell phones. Often the policyholder also has to pay a deductible. In the case of theft, it is also often difficult to prove that you have taken care of your belongings. Therefore, such insurance is not always useful. In addition, damage is sometimes covered by private household insurance, and you can also contact the responsible airline in the event of misdirected or lost suitcases. In the majority of cases, luggage insurance is not worthwhile.
This is often due to the insurance conditions that do not cover enough, as already described deductibles or the household contents insurance must pay first. It is therefore important to check carefully whether it really secures what it is supposed to do.
Travel cancellation insurance
When booking a trip, a deposit of 25% of the travel price is usually due. Of course, you can withdraw from a trip at any time, but mostly not for free. If this trip is canceled, fees will be due that depend on the time interval between the planned departure. While 25 days before the start of the trip the 25% of the travel price is usually due, 14 days before the planned departure it is 50%, and in the case of cancellation on the day of departure it is 75% or even the full amount. In this case, cancellation insurance is worthwhile, but only if the reason for the cancellation is considered an insured event. These include e.g.
- unexpected serious illnesses, but only if there was no previous illness
- Intolerance to a necessary vaccination
- damage to one's own home caused by natural forces
- the surprising job loss
Travel cancellation insurance should be taken out promptly with the booking, at least 30 days before the planned departure. This insurance is usually offered together with travel interruption insurance. The insurance premiums are also based on the age of the persons to be insured; some tariffs have a deductible of 25% for reimbursement.
Trip cancellation insurance
During a tour of an Asian country, you suddenly get the message that a close relative is seriously ill at home. Or a storm has devastated the apartment at home. With that the holiday fun is over, an urgent return is announced. Too bad there is only one expensive connection from where you are to the nearest international airport. In this case, it's good if the insurance company pays for the return flight. But the journey had only just begun. The planned round trip is gone, and the subsequent beach holiday will probably also fall flat. Typical insured event for a travel interruption. Such insurances are often offered together with travel cancellation insurance and / or travel health insurance. The deductible in the event of damage varies depending on the insurance from 0 to 25 € up to 25%.
Travel accident insurance
It is said that some people are a little more careless at their holiday destination than at home. You can join a Segway tour, try kite surfing or play volleyball on the beach. Or you have discovered a wonderful black slope on your ski holiday. It's actually great if you weren't totally untrained. Especially those who don't like sports are caught. Statutory health insurance then does not cover the financial consequences, nor does it pay for the return transport from the holiday destination. But there is international health insurance for this. But what is often not paid are the renovation costs of the house as a result of an accident. However, the vast majority of accidents happen at home. As a former insurance salesman, I therefore recommend that you first take care of an occupational disability insurance, which is clearly important. If the financial risk of remodeling the house is still too great, general private accident insurance is better off. However, the risk of a major disability is low and it is therefore only advisable to insure this high disability and the costs are then relatively low. It makes no sense to take out travel accident insurance for a trip.
The insurance coverage of a travel accident insurance is based on the amount of the agreed benefits for disability and rescue costs, for transport to the hospital and possibly for benefits in the event of death. Such an insurance is usually offered together with a foreign health insurance. With some companies, high-risk sports such as paragliding and mountaineering are not insured or only insured after written confirmation; sometimes the maximum travel duration to be insured is 46 days. The amount of the premium also depends on the age of the insured person. In the event of accidents you are responsible for, however, the insurance does not take over. This is the case, for example, if alcohol was involved or if you did not have a valid driver's license for the rental vehicle.
If you already have private accident insurance, you should ask there whether the risks are also insured during a holiday. This is the case in 99% of the cases because current insurance conditions for private accident insurance apply worldwide and do not exclude vacation trips.
Travel health insurance / international health insurance
When traveling by those resident in the EU with health insurance, the respective health insurance fund covers the costs in the event of illness throughout the EU. Eligibility is determined by the uniform European Health Insurance Card proven. This cost recovery is, however, often insufficiently only paid up to the respective national borders, which are often significantly lower than in Germany. It is therefore advisable to take out health insurance abroad.
Regulate between some European and non-European countries Social security agreement the claim against the health insurance company in the host country. A foreign health insurance is strongly recommended for all countries. It is offered in different versions. On the one hand for vacation and business trips up to 8 weeks, furthermore as long-term insurance up to 1 year or up to 5 years. In 2015, Russia made it mandatory to have foreign health insurance with a certain minimum amount upon entry. When applying for a visa, you had to provide proof of this by means of a letter from the insurer. I cannot say whether this is still the case.
As a former insurance salesman, I personally took out one at Allianz. At that time the test winner was the foundation goods test. This cost around 10 euros per year including tax in 2015. Today these are unlikely to be more expensive. For the study abroad or internship abroad, it is advisable to take out health insurance for the entire stay of several months (long-term insurance for up to 1 year). HanseMerkur offers one of the best tariffs in terms of performance.
For expats, we recommend international health insurance for a period of up to 5 years. Emigrants or long-term travelers longer than 5 years should definitely take out international health insurance. This also makes sense for expats who already know that they have been abroad for more than 5 years. As always with insurance, it is important to compare price and performance.
Important: if you have chronic pre-existing conditions (diabetes, asthma), travel health insurance does not pay for the necessary medication. Therefore, if necessary, fill in the health questions correctly and truthfully. Check beforehand what the statutory health insurance has saved. The background to this is that if the doctor does not find anything, the doctor likes to enter psychosomatic information. This incorrect diagnosis can have massive repercussions on an application for health insurance as well as disability insurance. It can also lead to a situation in which benefits are not paid because the health questions have been answered incorrectly. Therefore request the list from the health insurance company (the health insurance company must issue it) and have it checked for incorrect entries and corrected. Often times, insurance brokers fill out the health issues for the customer. However, this does not protect against having to answer the health questions truthfully. Therefore, your own health insurance should be contacted before starting the trip. The premium also depends on the age of the insured person. Often there is also a maximum age up to which one can be insured. In the case of cruise ships, billing is based on the law of the home port. Example: the ships of AIDA Cruises have as home port Genoa, the billing of medical fees is based on Italian law. Travel health insurance is usually offered together with accident insurance.
Insurance offers
The range of travel insurance is extremely diverse. The products of the following companies should suffice for a brief overview:
- ADAC travel protection
- ELVIA travel insurance packages (Allianz insurance)
- ERV travel insurance (ERGO insurance)
- HanseMerkur insurance
At Allianz you have to be careful, as there are 2 different Allianz companies that offer international health insurance. The insurance coverage differs.
The general rule is: Insurance companies have to work economically; in the case of extremely cheap offers, a careful examination of the scope of insurance is advisable. As always, it is not only important to pay attention to the price but also to the price / performance and the personal situation.
Individual insurance
Of course, when insuring a single trip, you can choose individual products from different providers and combine them individually. Often, however, complete packages are offered for a trip, the prices are 3% - 5% of the travel price depending on the insured risk.
Annual insurance
If you go abroad regularly, annual insurance may be your first choice. These insurances usually automatically extend their contracts for a further year if they are not terminated in good time. You should also pay attention to the level of the insured risk. For longer stays in a country, a foreign health insurance is sometimes useful, with an annual foreign health insurance several trips within a year are insured, whereby the duration of a single trip is limited to a certain number of days, which is listed in the respective insurance conditions. There are big differences here!
Credit card insurance
According to advertisements, most credit cards come with travel insurance. However, the devil is in the details and read the fine print carefully. With some credit cards, half of the travel price must be paid with the card. Other companies do not value this, but the insurance limit of 5,000 euros applies. The amount of liability for luggage insurance also varies, and a 20% deductible is common for the associated cancellation insurance. In general, depending on the company, there is an age limit for insurance, with one company only from 75 years of age, with another already from 65. Applying for a credit card only for travel insurance is often too short-sighted. You should not rely on this credit card insurance and instead take out your own foreign health insurance.
Practical advice
- The policy of a travel insurance should be kept together with the travel documents so that it is immediately accessible in the event of a claim. Most insurance companies have a 24-hour hotline. Their number should also be included.
- The documents also include the address of a person you trust (living in your home country). That person should at least know the name of the travel insurance company.
- In many countries, medical bills and hospital costs must be paid immediately. The costs incurred will only be reimbursed by the travel insurance when you return home. A credit card with sufficient cover is recommended.
- If you have international health insurance, take the vaccination book with you and a list of any allergies that may be helpful in an emergency, preferably in the local language.
Web links
- Travel insurance at Stiftung Warentest.
- Travel law and travel Focus
