It is essential for people to check their travel insurance policies, as they may not be protected against scheduled airline failure, Defaqto has warned. The independent research company conducted an assessment of the travel insurance market and discovered more than three-quarters (77 per cent) of policies do not provide such cover.
Only 20 per cent of the policies reviewed by the firm were found to give compensation should an airline failure occur. In some cases, cover may be provided, but only to a certain extent. Brian Brown, author of the report and head of research at Defaqto, explained: "While many 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."
As a result, the expert called upon holidaymakers to make sure they conduct a thorough check of their policies before parting with any cash, just to be sure. Defaqto also suggested that booking through an agency that is ATOL or ABTA protected can offer consumers peace of mind if their airline does come into some difficulties.
Furthermore, making use of a credit card could also prove worthwhile. It will offer them protection on purchases between £100 and £30,000, alongside some statutory protection if the company encounters financial difficulties.
Mr Brown continued: "Not everyone has the same needs for their travel insurance arrangements so it is important to take some time to review features carefully." He also urged people to make use of Defaqto's star rating system in order to select the best travel insurance policy for their needs.
Last month, Defaqto identified that purchasing a single trip travel insurance policy could work out cheaper than an annual product. |
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