As more travel firms and airlines fall victim to the slowing economy it pays to read the small print on your travel insurance.
More people are cutting out the travel agent and opting to book their own holidays, including flights and accommodation. This means it’s even more essential to take out appropriate travel insurance in case the worst happens and your airline or travel company goes bust.
As the economic crisis hits harder, more travel companies and airlines are struggling to stay afloat. The collapse of Oasis Airline in Hong Kong and the recent worldwide Qantas strike hit many customers hard because they weren’t adequately covered with the cost of having their holiday ruined.
With such uncertainty looming it pays to read the small print on your travel insurance. For instance, does your insurance policy include cover if your airline, accommodation supplier or tour agency goes out of business? Unfortunately not all insurance companies offer this cover as part of their standard package so make sure you check the details of your policy. For flights, if your airline goes bust, you should be able to claim back the extra money you might need to stick to your original holiday plans, or you can get a refund if your trip relied on that flight to go ahead. Similar rules apply if problems arise with any hotel rooms or tours you book in advance. Do check your policies to see whether such features are covered. Not all travel insurance policies protect against travel companies or airlines going bankrupt. Those that do may not offer it in their standard package but as an additional benefit. There are, however, some insurance companies that offer this type of protection as part of their standard package who will pay-out if the airline or travel company becomes insolvent.
Meanwhile, protection specifically for flights is often included as part of a main insurance policy, although it is sometimes offered as an optional extra. It is worth double-checking with your insurer, as some will not cover particular airlines in the event of flight cancellation for all kinds of reasons including ash clouds, flu epidemics, outbreak of contagious diseases, strikes, floods and natural disasters.