Thursday October 29, 2020
In the past few weeks, more and more places in Germany have been declared risk areas, and things are no different abroad either. But what happens to existing travel and hotel bookings if the trip cannot be started or has to be canceled due to travel warnings or quarantine? We show what insurance pays and what advantages it has if the booking was made with a credit card.
Travel cancellation insurance: when does the insurance cover apply?
Thousands of travelers are currently having to change and adapt their travel plans as new travel warnings apply or it is not possible to leave risk areas. But what if you have taken out travel cancellation insurance?
The travel cancellation insurance normally takes effect in the event of the following:
- Death or death of a close relative
- Severe short-term illness, such as corona infection (can be proven by a doctor’s certificate)
- Officially ordered entry bans
- Accidents with serious health consequences
- Pregnancy or pregnancy complications
- Unexpected job loss due to operational reasons
- Vaccination intolerance with health effects
- Serious damage to property (e.g. apartment fire)
- Court subpoena
The following cases are usually uninsured events:
- Fear of illness / infection (e.g. coronavirus)
- State authority / force majeure measures (e.g. ordered quarantine)
- Travel warnings from the Federal Foreign Office
- Restrictions due to security measures at the resort
- Cancellation by the travel provider due to the corona virus
Particularly important: The coronavirus epidemic has been officially recognized as a pandemic by the World Health Organization since March 2020. Some insurers expressly exclude pandemics as an insured event, including an infection with the coronavirus. You should be particularly well informed here.
In principle, however, it should be noted that most travel cancellation insurances step in in the event of a verifiable coronavirus infection and reimburse the costs in full. In cases that are not so clear, you should always consult the insurer.
In the event of a travel warning for your vacation destination, many insurers will not pay. Allianz Reiseversicherung and ADAC see the travel cancellation as an “uninsured event” due to a travel warning, while the credit card provider American Express (w) For example, it is more accommodating there as long as the trip was booked before the travel warning was issued.
Before canceling a trip, however, you should always contact the tour operator first. It is often possible to postpone the travel date or to receive a voucher without additional costs. Some tour operators even reimburse the entire travel price in the current situation. If you have Corona, you should definitely present a medical certificate to cancel a trip.
Cancellation Insurance: Who Really Needs You?
Many travelers are now consciously dealing with the subject of travel cancellation insurance for the first time in the Corona crisis. Although this is offered as an additional option for many online bookings, many bookers have not yet taken advantage of it. “Nothing has ever happened before” seems to be the motto.
Individual travelers in particular often save on travel insurance. Crises like the current one, however, show that a difficult situation can arise faster than we can imagine. You should therefore definitely find out about the offers for travel cancellation insurance from the insurer you trust and inform yourself well before making your next booking.
What many travelers do not know: Certain credit cards already contain an insurance package, which often also includes travel cancellation insurance. Credit card provider for frequent and business travelers such as American Express (w) or Miles & More offer the following extra securities on vacation trips:
- Travel withdrawal cost insurance
- Trip cancellation insurance
- Foreign health insurance
- Travel luggage insurance
- Accident insurance
- Comprehensive rental car insurance
- Car cover letter
When traveling abroad, the credit card is often the easiest and preferred method of payment. When deciding on a credit card, you should also pay attention to the insurance package, which may already be included.