Travel insurance policies fall short on cover for airline insolvency

A recent report has found that the majority of travel insurance policies fall short on providing holidaymakers with adequate cover should their airline go bust. The financial research discovered that only 20% of the travel insurance policies currently available to UK holidaymakers offered the appropriate cover for policyholders in the event of their airline going into liquidation. There are major repercussions for travellers if their airline goes under. Firstly your travel will be lost, which will have a knock-on effect on pre-booked accommodation, plus any extra excursions which may have been booked in advance, and also car hire. Some travel insurance policies which do offer cover should your airline go bankrupt only provide compensation up to £1,500, which when you take all of the aforementioned details into consideration such as money lost on accommodation and such forth, the amount is far from adequate. Travel experts advise that you book with a company which is ABTA or ATOL protected, as this way you will be covered in the event of an airline going bust. Also some credit cards offer cover if you pay for more than £100 of your holiday using your card, although you are advised to check with your bank that they offer this protection with your credit card.