Trip cancellation insurance: when it pays – and when it doesn't

Trip cancellation insurance refunds your cancellation costs if you cannot start a booked trip — but only for reasons set out in the policy, and only if you took out the insurance before the reason arose. It is not an "I changed my mind" policy.

Cancellation or interruption

With a cancellation you never start the trip; the cancellation costs are refunded. With an interruption you break off a trip already underway; unused services are refunded, plus any extra costs for the return journey and accommodation. Depending on the tariff, late departure and late return are also covered. Many policies combine both — check whether the interruption element is included.

The statutory right for package holidays

This applies independently of any insurance and is often overlooked. With a package holiday you can cancel at any time before the trip begins; the tour operator may then charge a reasonable compensation (§ 651h(1) BGB).

No compensation may be charged if unavoidable, extraordinary circumstances occur at the destination or in its immediate vicinity that significantly impair the trip or getting there (§ 651h(3) BGB). In that case cancellation is free of charge and the travel price must be refunded within 14 days. A travel warning from the German Federal Foreign Office is an important indication, but not automatically decisive — what matters is the individual case, such as war, terrorism, serious illness or a natural disaster at the destination. Events like these are usually not covered by trip cancellation insurance; you do not need it for them either, because the statutory right applies. Consumer advice centres provide sample letters.

What is typically covered

Covered are unexpected events that occur after you took out the policy — depending on the tariff:

serious, unexpected illness or accident of the insured person or a close relative
death of a close relative
pregnancy and complications
vaccine intolerance or officially ordered quarantine
significant damage to your own property, such as a house fire or burglary
involuntary, unexpected loss of your job
a court summons or resit exam that cannot be postponed
a traffic accident on the way to the trip

What is not covered

Simply "not feeling like it", vague unease and anxiety without a medical basis. Unavoidable extraordinary circumstances such as natural disaster, war or pandemic — section 651h BGB applies there. Circumstances already known or foreseeable when you took out the policy, and taking out the policy only after the reason arose. Depending on the tariff, chronic or pre-existing conditions are also excluded.

Refund and choosing a tariff

What is usually refunded are the cancellation costs you owe under the contract, up to the agreed sum insured. A deductible is common, often 20 % of the loss with a minimum of around €25; tariffs without a deductible refund 100 % but cost more. For inpatient hospital stays the deductible often falls away. Annual policies have a maximum per year and per insured event.

From about the second trip a year, an annual policy is usually worth it. Look at the deductible, the sum insured, whether interruption is included, whether pre-existing conditions are covered (rare) and which documents are required. Anyone who has already dealt with a rental car excess knows the pattern: less risk for a surcharge — more on that under Rental car: the excess explained.

When to take it out

Ideally right when you book. Many providers accept policies up to 30 days before departure, some up to 14 days. Last-minute bookings can usually only be insured within three days of booking. After the trip has started, no policy can be taken out, and anyone who only takes one out after a known reason arises gets nothing — the insurance only covers future, unforeseeable reasons.

When you need it

Inform the insurer without delay and cancel the trip, because you have to keep the loss as small as possible. You need a medical certificate with the diagnosis and expected duration, sometimes a specialist's certificate for mental illness. Depending on the reason, further evidence is required, such as a termination letter, death certificate or fire report. And keep every document: booking, cancellation, payments.

An example

The trip costs €1,500; cancelling four weeks before departure is 40 %, i.e. €600. If the policy covers the cancellation costs, the insurer pays up to €600 — possibly less the 20 % deductible, i.e. €120.

What often goes wrong

Taking out the policy too late, or only after the reason is known. Overlooking deadlines and the deductible. Not obtaining a medical certificate, or one without a diagnosis and duration. Not cancelling immediately, which increases the cancellation costs. And double cover through a credit card and a separate policy.

Quick questions

Does it pay if I fall ill abroad? Trip cancellation applies before departure; during the trip, travel health insurance applies and, for interruption, the interruption element. Does it pay if I simply do not want to fly? Usually not. Does it pay during a strike? Mostly only if you are affected yourself and rebooking is unreasonable — check the conditions. And for war or a natural disaster at the destination? That is usually not insured, but for a package holiday you can cancel free of charge under § 651h(3) BGB. In a dispute, the insurer's ombudsman (free of charge) or a consumer advice centre can help.

Note: general information, not advice or a recommendation for your individual case. What counts are the conditions of the respective insurer and — for package holidays — the statutory rules. As at: 17.10.2026.

Siehe auch

Sources

Section 651h BGB (cancellation before the trip begins, compensation, extraordinary circumstances): https://www.gesetze-im-internet.de/bgb/__651h.html
BGH, judgment of 28.01.2025 — X ZR 112/21 (cancellation/costs in extraordinary circumstances)
Consumer advice centres (trip cancellation/interruption, rights in disasters and war) and ADAC — tariffs and benefits (as at 2026)