Choosing travel insurance properly: cancellation, medical & luggage (2026)
Trip cancellation, international health cover and luggage protection — which insurance is really worth it when, and which traps to know.
Three insurances, three different purposes
On the topic of travel insurance, three very different things are often lumped together. Trip cancellation insurance applies before the trip, international health insurance during the trip, and luggage cover for loss or damage.
You do not automatically need all three. Which makes sense depends on how expensive your trip is, where it goes and how you are already covered.
Once you understand this, you buy exactly what really protects — instead of an expensive all-in package, half of which is superfluous.
Cancellation: protects your deposit
Trip cancellation insurance refunds the cancellation costs if you cannot start a booked trip for an insured reason — e.g. a sudden serious illness.
It is worth it mainly for early, expensive bookings with high cancellation fees. For a cheap, short-notice trip it is often dispensable.
Read carefully which cancellation reasons are covered and whether there is an excess. Also mind the deadline: some policies must be taken out shortly after booking.
International health cover: often the most important
Statutory health insurance often pays only partially or not at all abroad — and it usually does not cover a medically necessary return transport to Germany. That in particular can become very expensive in an emergency.
International health insurance closes this gap. It is usually cheap, especially as an annual policy for all trips, and is for many the most important protection of all.
Make sure a medically sensible return transport is included and check the coverage amount as well as any restrictions for pre-existing conditions.
Luggage cover and other building blocks
Luggage insurance replaces lost or damaged travel luggage. It sounds attractive but often has tight conditions, caps and exclusions — check whether you really need it.
With package holidays the operator is liable anyway, and lost air luggage is in many cases settled by the airline. A separate luggage policy is therefore not always necessary.
Also check whether you already have partial cover through credit cards, existing home contents or liability insurance. Double insurance costs money needlessly.
Single or annual policy — and what to watch
If you travel once a year, a single-trip insurance is often cheaper. If you travel several times a year, an annual policy covering all trips usually saves money.
Compare benefits, not just price: coverage amount, excess, covered reasons and restrictions decide a policy’s real value.
Book to suit your travel profile and avoid superfluous all-in packages. A lean, targeted cover is usually better than an expensive all-round package with many unused blocks.
Practical tips
- Book trip cancellation insurance mainly for early, expensive bookings.
- International health cover with return transport is often the most important policy.
- Check whether a credit card or existing insurance already offers cover.
- For several trips a year, an annual policy usually pays off.
- Compare benefits and excess, not just the price.
Common mistakes to avoid
- Buying an expensive all-in package, half of which is superfluous.
- Dismissing international health cover as unimportant.
- Missing the deadline to take out trip cancellation insurance.
- Double-insuring although cover already exists.
- Looking only at price and ignoring coverage amount and exclusions.
Checklist before you compare
- Need per building block determined: cancellation, medical, luggage.
- Trip price and cancellation fees assessed for cancellation cover.
- International health cover with return transport checked.
- Existing cover via cards/insurance reviewed.
- Single vs. annual policy compared for your travel behaviour.
- Coverage amount, excess and exclusions read.
Frequently asked questions
Which travel insurance is most important?
For many, international health cover, since statutory insurance often does not pay abroad and does not cover return transport.
When is trip cancellation insurance worth it?
Mainly for early, expensive bookings with high cancellation costs. For cheap, short-notice trips it is often dispensable.
Do I need separate luggage insurance?
Not always. On package holidays the operator is liable, air luggage is often settled by the airline, and credit cards sometimes offer cover.
Single or annual policy?
For one trip a year usually the single policy, for several trips the annual one. Compare benefits, not just price.
What should I watch with international health cover?
That a medically sensible return transport is included, plus the coverage amount and restrictions for pre-existing conditions.
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