You are here: Home - Insurance - News -

Two-fifths of travel policies offer no protection for airline failure

0
Written by:
01/04/2019
Two in five travel insurance policies offer no protection if an airline collapses leaving holidaymakers exposed, analysis shows.

Less than half (48%) of travel insurance policies offer cover for airline failure as standard, meaning that travellers could be left unprotected if the airline they’ve booked with gets into financial difficulty and they can’t travel, according to independent financial information business Defaqto.

These figures come days after Icelandic budget carrier Wow Air announced it had stopped operating and cancelled all flights, leaving passengers stranded, and a month after the collapse of Flybmi.

Defaqto’s research found cover for airline failure is offered as an optional extra in 6% of annual and 7% of single trip policies, but 46% offer no protection at all.

Brian Brown, head of insight at Defaqto, said: “With flights and holidays cancelled as a result of the Wow Air collapse, a lot of people’s holidays will be ruined over the coming months. Airline failure is not covered as standard on over two fifths of travel insurance policies as the risk is usually relatively small.”

Wow Air passengers who booked their flights as part of a package holiday will be fully protected through the ATOL scheme and the travel firm is responsible for making alternative flight arrangements or providing a full refund.

However, those who have booked flights directly and haven’t travelled yet, are at risk.

Brown said: “If you paid for your flight with a credit card, you will be able to get a refund from the credit card company and should contact them directly for this. If you bought your flight with a debit card, you may be able to claim under your travel insurance policy if you have this cover.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
New price cap on 118 numbers to protect one million people

People who call directory enquiries will be protected from high prices as a price cap on 118 phone numbers comes...

Close