Different Travel Insurance Policies

Cancellation-Modification Insurance

In a way, this is the most "common" type, or at least the one that works best for travel.

Cancellation Insurance

It applies to flights (scheduled, low-cost, charter) as well as stays, tours, cruises, and generally almost any type of service. This insurance is not mandatory.

The Principle

Cancellation insurance allows you to be reimbursed (less often a deductible and general fees) if you give up a trip, provided the reason is covered by the policy. To be valid, this insurance must be taken out on the same day as the booking.

Coverage

As for coverage (subject to conditions), there are standard clauses found with all insurers, particularly for illness, accident, or death (not "foreseeable") of the policyholder or a close relative, theft or significant damage to their home or business premises, or redundancy.

Those that vary from one policy to another but are increasingly common: illness, accident, or death ("foreseeable") of the policyholder or a close relative, pregnancy complications, visa refusal by authorities, passport theft on the day of or the day before departure, exam failure, divorce, changes to holiday dates by the employer, relocation, new job, issues following vaccination... and even lack of snow for winter sports! In short, more and more possible reasons—except just "not feeling like going."

Naturally, the more coverage included, the higher the premium. So, it’s best to choose what fits your situation best, starting by reading the exclusion terms.

Claims Process

Notification: In case of cancellation, you must notify the agency that sold the service, sometimes even by registered letter, along with the supporting documents. It’s also essential to do this as soon as possible (deadlines are often specified in the policy), as reimbursement rates vary depending on how much time is left before departure. Also, many insurers consider the actual date of the impediment—not the declaration date—when calculating compensation.

Procedure: If there are no issues, things usually move quickly, and you can generally expect payment within about two weeks after submitting a complete file. If there are doubts, insurers may request additional supporting documents or even expert assessments, which will naturally delay payment.

Reimbursement: This covers the cost of the unused service, minus almost always a deductible, which can vary from one policy to another (a comparison factor).

If Not Covered

Penalties for uncovered cancellations can vary depending on the tour operator, the type of service purchased, or—in the case of flights—the type of flight (or even the airlines used). Also, the closer you get to the departure date, the higher the penalties, up to 100% of the price paid in the final days.

Flight Tickets: Note that for flights, fees are always higher for charters than for scheduled flights, especially after 30 days before departure. While the average retention is 15–45 € per ticket a month before departure, charters often reach 100% at 30–21 days before departure, unlike scheduled flights, where 100% penalties usually only apply after 7 days. For full-fare tickets on scheduled flights, the rules are more flexible, and you can generally cancel without fees.

Modification Insurance

The Principle

This insurance is usually combined with cancellation coverage.

Beyond cancellation, you may sometimes want to make changes to your trip, such as date or name changes (or route changes for flights). If this modification isn’t covered by the cancellation insurance, the client will have to pay the fees. In air travel, a change may sometimes involve cancellation and rebooking.

Note that while date changes (and route changes for flights) are subject to strict rules, name changes are generally more flexible.

Flight Tickets

As with cancellation, charter rules are stricter than those for negotiated scheduled flights. However, a full-fare ticket on a scheduled flight will allow all these modifications without penalties.

As for changing your return date once you’re already at your destination—even if agencies rarely mention it—this depends first on the type of ticket and the airline used. But even with negotiated scheduled flights, there are often ways to change your date for free or at little cost (check with the carrier on-site).

Trip Interruption Insurance

Relatively recent (and not yet widespread), this applies particularly to tours, cruises, and stays. It’s a non-mandatory insurance, usually combined with the two above.

The policy reimburses additional costs for an early return trip due to a serious reason (illness, accident, death of a close relative...) and, most importantly, the unused portion of the travel service. A deductible may often apply.

Who Offers These Insurances?

They are automatically offered by the agency selling the service. However, you may already be covered through your credit card, some airline loyalty cards, mutual insurance companies, or other insurance policies. So, it’s worth checking what you already have and what coverage it provides (amount, deductible...).

If needed, you can also contact other specialized companies offering this type of policy.

Price Considerations

Prices vary widely depending on the provider, services, types of policies, and especially the coverage chosen. Additionally, cancellation-modification insurance is often bundled with other services (insurance and/or assistance).

Meanwhile, premiums are kept competitive (and "couple" or "family" plans are growing), as a high cost tends to deter many consumers. That said, beyond the price, it’s the coverage and reimbursement level that should be prioritized.

In short, just to give an idea, a few dozen euros per person generally provides good coverage.

Baggage Insurance

The Principle

Baggage insurance covers theft, loss, or damage to luggage. Its purpose is to provide more favorable compensation (though often capped at around 1,000 €) than what carriers typically offer.

To be valid, this insurance must be taken out before departure. It is most often offered by the travel agency, usually bundled with cancellation-modification insurance.

Coverage

Baggage insurance primarily applies to air travel (but also hotels, cruise lines, etc.). Even though airlines are legally responsible for the theft, loss, or damage of their passengers' luggage, their compensation limits are not always very attractive. In short, with baggage insurance, you can get reimbursement closer to the value of the items transported, provided you can prove it.

Covered or Not?

Theft, loss, damage (and sometimes, with an additional premium, delay in air travel) of luggage during transport (plane, bus, car...) or at a stopover (hotel) are covered. However, if the damage results from forgetfulness or negligence by the policyholder, the policy will not apply (hence the usefulness of using hotel safes).

Items considered "fragile" (check with each insurer for specifics) are also not covered. Likewise, money, credit cards, or other payment methods found in luggage are never covered (they are not supposed to be there). The same goes for valuables, identity documents, and travel tickets.

For those traveling with sports equipment, it’s best to check whether it’s covered and up to what amount. The same applies to certain photo, video, or computer equipment, which may require additional insurance in some cases.

Finally, items purchased during the trip are generally included in the coverage.

Claims Process

Notification

In Case of Theft: Start by filing a police report with the local authorities before sending the document to your insurer; it must include the amount and description of the stolen items.

In Case of Loss: You must file a report with the carrier (form) or hotel, indicating the amount and description of the items, before sending it to the insurer.

In Case of Delay (Air Travel): You must also file a report with the airline. Note that the definition of "delay" can vary depending on the carrier and insurer.

In Case of Damage: Have the damage recorded by the carrier or hotel staff or by a witness. It’s advisable to take photos of the damage.

Procedure

The insurer must then be contacted quickly, sometimes within 24 hours of the incident. Upon return, within 2 days for theft to 5 days for damage, the complete file must be submitted. Receipts for the items must be included.

Reimbursement

With some insurers, a first lump-sum payment is made to the policyholder while the proper procedures are followed, especially to cover immediate needs on-site. Similarly, some airlines may also provide temporary assistance while the process is underway. Generally, if there are no issues, reimbursements are made fairly quickly (a few days) based on the terms defined in the policy (possible deductible).

If Not Covered

Logically, there will be no compensation. That said, if you haven’t taken out baggage insurance for your trip, still check whether your credit card, mutual insurance, or other policies include a clause that might allow for compensation.

Who Offers This Insurance?

It is most often automatically offered by the agency selling the service. However, you may already be covered through your credit card, some airline loyalty cards, mutual insurance companies, or other policies, particularly home insurance. So, it’s worth checking what you already have and what coverage it provides (amount, deductible...). If needed, you can also contact other specialized companies offering this type of policy.

Price Considerations

Prices vary depending on the provider and services. Additionally, baggage insurance is often offered with other services (insurance and/or assistance). Otherwise, outside of other policies, expect to pay between 15 and 30 €.

Other Insurances