Gaps in Travel Insurance Increase as Many Policies Leave Holidaymakers Unprotected
If you’re looking to book a summer holiday over the coming weeks, then getting the right travel insurance to accompany it has never been so important.
Disruptions over the past two years has highlighted the gap in a huge number of travel insurance policies, leaving many people stranded and in desperate need of a holiday loan or holiday finance to cover it.
“Airline failures, flight cancellations because of strikes, swine flu health scares, excessive snowfall and the volcanic ash cloud have all left people with reduced holiday cash or no holiday at all and no way to claim it back.”
When you book a traditional holiday package, the tour operator is responsible for delivering the promised holiday.
If the trip has to be cancelled because an airline fails, then the tour operator is responsible for getting customers home and must refund the holiday money spent.
If the tour company itself goes under, the ATOL scheme means other travel companies have to rally round and get stranded travellers home.
“More holidaymakers are taking advantage of comparison websites and deciding to book their flights, accommodation and extras such as car hire or excursions separately,” stated Mr James, of Bad Credit Loans 4 You.
Research by Post Office Travel Insurance found 40% of travellers were concerned about the financial failure of travel companies, while one third were worried about the potential disruption from further strikes.
Roman Bryl, travel insurance underwriting manager at Axa Insurance, said; “Travel insurance has been slow to keep up with changes in the way people book holidays.”
“The rise of the independent traveller who doesn't book package trips means that some holidaymakers can be left exposed.”
According to a study by independent financial analyst Defaqto, four out of five travel insurance plans do not cover your holiday on finance if an airline goes bust.
Mike Powell, an insurance specialist with Defaqto, said; “With all insurance, the devil is in the detail of what each policy covers.”
“This is especially true for travel insurance as different policies have such a wide variation in cover.”
Even when the travel cover offers protection against a delay or cancellation, holidaymakers can still be left with a large excess, eating into their holiday spending money.
Graeme Trudgill, technical executive at the British Insurance Brokers' Association, said; “Broadly speaking, you get what you pay for and a policy that costs £10 will only do the very basics.”
“If you've spent £1,000 a head on a holiday, it seems a false economy to pennypinch on the insurance.”
To help people get a greater understanding of the cover they are purchasing, Defaqto have rated each insurance policy depending on the extent of its cover.
On the Defaqto website, you can find hundreds of policies rated from one star to five, giving you a better knowledge of what your credit for travel insurance is being spent on.
“Some companies are revamping their travel insurance cover to take into account the changes in how people book their holidays,” said Mr James of Bad Credit Loans 4 You.
“Although the added protection is good news for consumers, many could be put off by the extra holiday cash the premium will cost them.”
Axa have recently introduced an optional independent traveller section which provides cover against the failure of an airline and money for holiday losses if a flight is cancelled.
It also provides additional cover if you choose not to travel because of advice from the Foreign Office or the World Heath Organisation.
Columbus Direct has also upgraded its cover, which now includes scheduled airline failure, plus an optional emergency travel upgrade.
The cover can pay up to £4,000 in accommodation and alternative travel money costs for those who are stranded abroad should a disruption occur.
Aviva have also responded to last year's ash cloud problems by creating optional add-on cover against having to cancel a trip because the airspace is closed or an airport or port is shut for more than 24 hours.
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Loans 4 You of London Ltd
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Bad Credit Loans 4 You was formed in order to ensure people with bad credit had access to specialist help in securing the bad credit loans they need.
From its UK head office in Monks Brook, Loans 4 You operates across Britain, sourcing bad credit loans for people with bad credit.
Bad Credit Loans 4 You holds a Consumer Credit Licence issued by the Office of Fair Trading.
Bad Credit Loans 4 You is also covered by the Financial Ombudsman.
Bad Credit Loans 4 You is also registered with the Information Commissioner’s Office for Data Protection.
