Travel Insurance: Brilliant Guide 2026

Travel insurance is a closed book for many travellers – yet the right combination determines whether you end up paying hundreds or thousands of euros yourself in a worst-case scenario. In this guide, you’ll learn which insurance policies you really need and which you can safely forget.

Why travel insurance is more than just a bothersome extra

Imagine you’re in a hospital in Thailand with appendicitis. The treatment quickly costs several thousand euros – without overseas health insurance, you’re stuck with the bill. Or you have to cancel three days before departure because of the flu, and the airline won’t refund anything. This is exactly where travel insurance kicks in. They’re not a rip-off but a safety net that protects you from existential financial damage.

But not every policy makes sense. Some insurance policies are unnecessary, others essential. The art lies in finding the right mix – depending on your destination, travel style, and personal situation.

Overseas health insurance: The absolute number one

If you were allowed to take out only one travel insurance, it would be this one. Overseas health insurance covers doctor visits, hospital stays, and medically necessary repatriations abroad. In many countries – even within Europe – you’d otherwise pay out of pocket.

An example: In Norway, a simple doctor’s visit for tourists can quickly cost 200 euros. In the USA, hospital stays can even reach six figures. Statutory health insurance in Germany often reimburses only a fraction or nothing at all abroad. Private overseas health insurance is available for just a few euros per year – a fraction of what a single emergency would cost.

Make sure the insurance is valid worldwide (or at least for your destination country) and covers repatriations. For longer stays outside the EU, there are special long-term policies. If you travel frequently, an annual policy can be cheaper than multiple single policies. You can find more exciting travel destinations in our beach deals.

Travel cancellation insurance: When it really pays off

Travel cancellation insurance steps in if you can’t start a booked trip – for example, due to serious illness, an accident, or a death in the family. It reimburses the cancellation costs, which can quickly amount to 50 to 90 percent of the travel price depending on when you cancel.

Whether you need it depends on the trip price and your life situation. You should definitely insure a cruise for 5,000 euros or a long-haul trip to Japan. A weekend trip to Copenhagen for 200 euros – probably not, as the premium and potential loss are disproportionate. Families with children or people with pre-existing conditions benefit more often from travel cancellation insurance than perfectly healthy solo travellers.

Important: The insurance must be taken out before booking the trip. If you take it out after booking, you often have no coverage. Moreover, it only covers specific reasons – lack of desire or fear of bad weather are not included.

Baggage insurance: Usually dispensable

Baggage insurance reimburses the value of your lost or damaged luggage. Sounds sensible, but in most cases it’s unnecessary. Airlines are already liable for lost baggage – however, only up to a certain maximum amount, which under international agreement (Montreal Convention) is around 1,500 euros.

For most travellers, this liability is sufficient. Additional baggage insurance is only worthwhile if you’re carrying expensive equipment such as cameras, diving gear, or musical instruments. In that case, check whether your home contents insurance already provides worldwide coverage for valuables you take with you – many policies do.

A common misconception: Baggage insurance doesn’t compensate for the hassle when your suitcase is missing for days. It only pays for material damage. Therefore, always pack important items like medication and valuables in your carry-on.

Other insurance: Useful or not?

There are a whole range of other travel insurance policies. Here’s a quick overview:

• Trip interruption insurance: Reimburses additional costs if you have to end your trip early. Useful for expensive long-haul trips, often in combination with travel cancellation insurance.
• Travel liability insurance: Covers damage you cause abroad. Often included in private liability insurance – check that first.
• Travel accident insurance: Applies to accidents abroad. Overseas health insurance usually covers medical costs better.
• Travel health insurance for pregnant women: A special case – not every policy covers complications during pregnancy.

Generally: Better a few good policies than an all-round carefree package that only provides superficial protection.

Which protection is worthwhile for whom?

The ideal travel insurance doesn’t exist – it depends on your travel type. Here’s a rough guide:

• City travellers: Overseas health insurance is a must. Cancellation only for expensive bookings. For inspiration for city trips, check out our city trips.
• Long-haul travellers: Overseas health plus cancellation plus possibly trip interruption. Baggage only for valuables.
• Families: Overseas health for all family members, cancellation for the whole trip. Children can often be insured at a low cost.
• Backpackers: Overseas health for long-term, often with special rates. Cancellation rarely necessary since bookings are flexible.
• Business travellers: Overseas health and cancellation – the latter often provided by the employer.

If you travel a lot, an annual overseas health insurance policy can save money. Single policies per trip are more worthwhile for occasional travellers.

What to look for when taking out insurance

Before taking out travel insurance, read the fine print. Important points:

• Coverage amount: For overseas health, at least 1 million euros, preferably unlimited.
• Deductible: A small deductible lowers the premium. For a few euros saved, it’s usually not worth it.
• Exclusions: Pre-existing conditions, risky sports, pregnancy – not everything is covered.
• Emergency number: Look for a 24/7 hotline, ideally with German-speaking contacts.
• Contract term: Annual contracts often cheaper, but you’re tied in longer.

Compare several offers. Independent portals like Stiftung Warentest or Verbraucherzentrale provide guidance. The German Wikipedia page on travel insurance also gives a good overview of the different types.

Frequently asked questions

Do I need overseas health insurance when travelling within the EU?

Yes, because the European Health Insurance Card (EHIC) only covers medically necessary treatments in the public health system. You often have to pay upfront, and repatriations are not included. Private overseas health insurance closes these gaps.

When should I take out travel cancellation insurance?

Best directly when booking the trip. Only then are you covered if you fall ill before the trip. Taking it out later is usually ineffective.

Is baggage insurance worthwhile?

For most travellers, no, as airlines are already liable. Only for very valuable baggage or special circumstances can additional insurance be worthwhile – also check your home contents insurance.

Before planning your next trip, check our current flight deals and secure cheap flights from Germany. With the right travel insurance in your bag, you can then fly off with peace of mind.