Whether it is a resort holiday on the Mediterranean, a study trip to Asia or a snowboarding trip to the Alps, holiday options are more varied today than ever. Yet the nicest days of the year also involve risks.
No one likes to think about accidents, illness, lost luggage or disputes with the tour operator, but on holiday too the rule is: you are properly protected only with the right insurance. Trip cancellation cover, baggage insurance, travel health insurance abroad, the "Mallorca policy" and a motor breakdown assistance policy (Autoschutzbrief) help ensure your best days of the year do not become the most expensive.
A serious road accident, a fire in your flat, your child needing emergency surgery for appendicitis: many reasons can stop you from starting a long-planned trip or force you to cut it short.
Trip cancellation insurance covers you here: it reimburses the cancellation fees charged by your tour operator if you have to cancel a booking you have already made. You can also insure against having to leave your holiday early and being unable to use services you have already paid for, for example if a close relative falls seriously ill or passes away.
That also applies if unforeseeable complications arise during pregnancy, if you suffer adverse effects after a vaccination, or if you cannot leave your home unattended or must return quickly because of burglary, fire, serious storm damage or other natural events.
Sometimes it happens on the very day you arrive: your suitcase is stolen. The tour operator is liable only up to a limited amount, if at all. Travel baggage insurance can cover anything beyond that. It can be taken out as a weekly, monthly or annual policy.
Travel baggage insurance protects you worldwide from financial loss due to loss, destruction or damage to property you take with you.
Depreciated value or repair costs are covered
Personal travel items and things worn on the body or in clothing, checked and hand luggage, souvenirs and gifts, sports equipment including accessories and protective clothing are all covered under baggage insurance.
As a rule, the depreciated value of the items you carry is insured, i.e. new value minus a reasonable allowance for wear, age and use. For damaged items, the insurer pays repair costs up to the depreciated value.
On trips beyond Germany's borders, private travel health insurance abroad provides good protection. Statutory German health insurers only reimburse treatment costs when you travel in an EU country or one that has a social security agreement with Germany.
Even then, medical costs are reimbursed only up to the level customary in Germany. Outside Europe you are usually treated as a private patient and may have to pay very high doctors' or hospital bills yourself; in the USA, for example, these can easily exceed a year's income. Statutory insurers also do not cover repatriation to your home country.
Medical transport home is insured too
Travel health insurance abroad pays for medical treatment for acute illness and accidents, inpatient treatment, pain-relief dental treatment, and medicines, dressings and remedies.
Medically necessary repatriation to Germany is also covered, as are repatriation of remains if an insured person dies abroad and funeral costs incurred abroad.
You can take out travel health insurance for a fixed number of travel days or as an annual policy for any number of trips within a year.
On the road in a hire car
If you want to explore your destination on your own, a hire car is a popular choice. Especially in southern Europe, liability limits for rented vehicles are often lower than in Germany.
After an accident that can become expensive: if you cause an accident as the driver of a hire car and the injured party's claims exceed those minimum sums, you must pay the difference yourself.
Cost-effective protection with the "Mallorca policy"
You are on safer ground if you already have hire-car liability insurance at home, commonly called the "Mallorca policy". Domestic motor insurers offer it for just a few euros.
The basic version usually covers Europe and can be bought for a few weeks or several months. Depending on the insurer, the Mallorca policy may already be included in your existing motor policy, so check your contract or ask your insurer.
If you need the extension worldwide, you can choose a so-called traveller contract.
Tip: notify the police immediately after an accident and inform the hire company. If you do not have injuries documented by a doctor, you risk them not being recognised by the liability insurer of the party at fault.
Maximum cover
If you travel abroad in your own car, you need the right insurance too. For motor third-party liability, it is best to choose the maximum available cover.
Comprehensive cover is a useful addition. Partial comprehensive insurance covers theft, fire, weather, collisions with animals and glass breakage. Fully comprehensive insurance also pays for damage to your own vehicle in an accident. It also pays if you are involved in an accident abroad, suffer damage and the party at fault does not settle the claim properly.
You should always carry the green insurance card as proof of cover and a European accident statement with form guidance in ten languages on any trip abroad.
Low-cost and practical: the motor breakdown assist policy
A motor breakdown assist policy (Autoschutzbrief) is also useful and inexpensive. After a breakdown or accident it covers, within set limits, recovery, towing and storage of the vehicle, shipping spare parts, repatriation if the driver falls ill, necessary overnight stays and, where applicable, a hire car.
You can obtain motor breakdown assist policies from all German motor insurers and automobile clubs.
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