Travel insurance rarely covers airline failure

| June 29, 2010 | 0 Comments
Travel insurance rarely covers airline failure

Only a quarter of travel insurance policies offer cover if the policy holder is stranded because their airline has gone bust, according to a new study.

The research by Defaqto found 77% of travel insurance policies do not cover airline failure.

Even insurers that cover airline failure may only offer a refund for the missed flight, and not for other components of a holiday such as accommodation and pre-booked activities.

“While many insurers give cover of £1,500 or more for scheduled airline failure, the limit may not be sufficient to cover all of the other pre-booked and paid-for items such as hotel accommodation, excursion tickets and car hire,” said Brian Brown, head of research at Defaqto.

“It is essential that travellers review the details of their policy before they set off on their travels.”

Defaqto’s research also found that many holidaymakers take out an annual policy even though they only go abroad once a year.

This is despite the fact that single trip policies work out cheaper for infrequent travellers.

“Many people are having to rein in spending, so it makes sense to buy a policy to cover what you actually need,” Brown said.

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