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How high should the sum insured for trip cancellation insurance be?

In short

The sum insured for trip cancellation insurance (Reiserücktrittsversicherung) should be as high as the full price of everything booked in advance: flights, accommodation, rental car and tickets for all insured travellers. If it is too low, the insurer may pay only in proportion under section 75 VVG. Cover for a EUR 3,000 trip costs about EUR 80 to 150.

How high should the sum insured for trip cancellation insurance be?

What it costs

What trip cancellation insurance costs in Germany depending on the trip price.

ExampleTypical range
Single trip policy, share of the trip priceusually 3 to 8 percent
Trip for EUR 3,000, 14 days, broad cover per personabout EUR 80 to 150
Trip for EUR 2,500, age 28, single tripabout EUR 97 to 170
Annual policy, one person, trips up to EUR 3,000about EUR 100 to 140 a year

Guide values as of October 2026 from published tariff examples and a consumer test of March 2025.

The tariff bands in the table are a guide value from quoting practice;

we obtain the exact quote for you.

Worked example

Family holiday with a sum that is too low

Trip price EUR 3,200, sum insured EUR 2,500. The trip is cancelled because of illness and the tour operator charges EUR 1,600.

Sum insured to trip price2,500 : 3,200 = 78 percent
Cancellation costsEUR 1,600
Payout after the cutEUR 1,250
Less 20 percent excess, if agreedEUR 250

Instead of EUR 1,280 the family receives EUR 1,000. The right sum of EUR 3,500 would have cost only a few euros more.

What counts as the trip price

What matters is what you would have to pay if you cancel. Add up everything booked before the trip: package holiday or flight, hotel or holiday flat, rental car, ferry, courses and event tickets, for all insured travellers.

Costs you only pay on site, such as meals or spontaneous excursions, do not belong in the sum insured, because they do not arise when you cancel.

What happens if the sum insured is too low

If the sum insured is considerably lower than the trip price, section 75 of the German Insurance Contract Act (VVG) allows the insurer to pay only in proportion. Insure a EUR 3,200 trip for EUR 2,500 and you get only about 78 percent of each cancellation bill, even if the bill itself is below EUR 2,500.

Check the sum after every change, for example when a child joins or you upgrade the hotel.

A sum that is too high only costs money

No trip cancellation policy pays more than the actual cancellation costs. Round up to the next tariff band, not the one after.

Trip priceSensible sum insured
EUR 1,800, two peopleband up to EUR 2,000
EUR 3,200, family of fourband up to EUR 3,500
Long haul trip EUR 6,400band up to EUR 7,000
Flight EUR 600 plus holiday home EUR 1,400, booked separatelyEUR 2,000 for both

Annual policies: check the sum per trip

With an annual policy the chosen sum usually applies to each trip. If one trip costs more, you are underinsured for that trip. According to a consumer guide, raising the sum on annual policies is subject to the same deadlines as taking out cover after booking, often only a few days.

Many German policies also deduct an excess (Selbstbeteiligung), often 20 percent of the cancellation costs. It is separate from the sum insured and stays with you even if the sum is right.

Step by step

  1. Collect all booking confirmations.
  2. Add up the prices for all insured travellers.
  3. Round up to the next tariff band.
  4. Check the sum after every rebooking.
  5. On an annual policy, use the most expensive trip as the benchmark.

Checklist

  • Flights, accommodation, rental car and tickets included
  • All travellers counted
  • Sum at least equal to the trip price
  • Excess known
  • Deadline for taking out or raising cover met

Common mistakes

  • Insuring only the flight and forgetting the separately booked holiday home
  • Choosing the smallest band on an annual policy and then booking a long haul trip
  • Not reporting an upgrade to a more expensive hotel

Questions and answers

Frequently asked

How high should the sum be for a package holiday?

As high as the total price on the booking confirmation for all travellers.

Do excursions count?

Only if you booked them in advance and would have to pay when cancelling.

What if the trip gets more expensive?

Raise the sum straight away, otherwise the insurer may cut the payout.

Does the annual sum cover all trips together?

Usually it applies per trip.

Check your terms.

Is a higher sum than the trip price worth it?

No, only actual cancellation costs are paid.

Sources

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Related questions

Your broker: Norman Nammert, trading as NAMMERT.

Insurance broker licensed under section 34d(1) of the German Trade Regulation Act.

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It does not arrange your contract.

Statutory disclosure (German) · Updated

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