Will my travel insurance cover me if my airline goes bust?

Posted On : Jun-29-2009 | seen (69) times | Article Word Count : 437 |

If you are worried that the airline you are travelling with will go bankrupt before or during your holiday, you may want to get a travel insurance policy that offers financial default insurance.

If you are worried that the airline you are travelling with will go bankrupt before or during your holiday, you may want to get a travel insurance policy that offers financial default insurance. However, not all travel insurance policies offer this as standard, and some only offer it under certain conditions, so you may want to check the small print on your policy documents before signing them.

Financial default cover usually only applies if an airline has completely ceased trading due to financial reasons. Even if a policy includes this as standard, it may only apply if you buy your insurance less than a couple of weeks after you book your flights.

It is worth investigating the small print of your travel insurance policy before you buy, as some of the more stripped down packages do not offer financial default cover as standard. Also, steer clear of buying insurance directly from the airline you are travelling with, as they cannot pay out on a claim if they are bankrupt themselves.

Financial default cover is usually only applicable to airlines, cruise lines, and tour operators, and not to independent travel agencies, so if you are booking through an agent, make sure that they are licensed through a guarantee scheme such as ABTA.

If your trip consists of a number of journeys with different travel suppliers, then you will only be covered by financial default insurance if you miss your whole trip as a result of one company going under. So if you had booked a flight to Barbados to board a cruise ship, and the cruise company goes out of business, you would not be refunded for your flight.

There may be a waiting period specified in the insurance contract, for example the travel supplier may have to go bust more than a week after you bought the insurance policy for it to be valid. This is to prevent a rush of late applications for insurance in the wake of the news that a travel supplier is about to go under.

Most insurance underwriters have a list of airlines that they are willing to insure, so make sure that the airline that you are travelling with is on this list before you buy any policy, or else your financial default cover will be worthless.

So if you feel that you need financial default protection, then make sure to buy your travel insurance as early as possible, read the policy documents thoroughly, and make sure that you buy it from an independent party, rather than direct from your travel supplier.

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<h1>Will my travel insurance cover me if my airline goes bust? </h1> Author: <a href='http://www.articleseen.com/profile_Dominick Davis .aspx'>Dominick Davis </a> 
If you are worried that the airline you are travelling with will go bankrupt before or during your holiday, you may want to get a travel insurance policy that offers financial default insurance. However, not all travel insurance policies offer this as standard, and some only offer it under certain conditions, so you may want to check the small print on your policy documents before signing them.

Financial default cover usually only applies if an airline has completely ceased trading due to financial reasons. Even if a policy includes this as standard, it may only apply if you buy your insurance less than a couple of weeks after you book your flights.

It is worth investigating the small print of your travel insurance policy before you buy, as some of the more stripped down packages do not offer financial default cover as standard. Also, steer clear of buying insurance directly from the airline you are travelling with, as they cannot pay out on a claim if they are bankrupt themselves.

Financial default cover is usually only applicable to airlines, cruise lines, and tour operators, and not to independent travel agencies, so if you are booking through an agent, make sure that they are licensed through a guarantee scheme such as ABTA.

If your trip consists of a number of journeys with different travel suppliers, then you will only be covered by financial default insurance if you miss your whole trip as a result of one company going under. So if you had booked a flight to Barbados to board a cruise ship, and the cruise company goes out of business, you would not be refunded for your flight.

There may be a waiting period specified in the insurance contract, for example the travel supplier may have to go bust more than a week after you bought the insurance policy for it to be valid. This is to prevent a rush of late applications for insurance in the wake of the news that a travel supplier is about to go under.

Most insurance underwriters have a list of airlines that they are willing to insure, so make sure that the airline that you are travelling with is on this list before you buy any policy, or else your financial default cover will be worthless.

So if you feel that you need financial default protection, then make sure to buy your travel insurance as early as possible, read the policy documents thoroughly, and make sure that you buy it from an independent party, rather than direct from your travel supplier. About the Author: 1stoptravelinsurance.co.uk provides <a href="http://www.1stoptravelinsurance.co.uk">cheap annual travel insurance</a> with cover to travel as many times as you like for up to 45 days at a time. Article Source: <a href='http://www.articleseen.com/Article_Will-my-travel-insurance-cover-me-if-my-airline-goes-bust_1418.aspx'> http://www.articleseen.com/Article_Will my travel insurance cover me if my airline goes bust? _1418.aspx</a>

Article Source : http://www.articleseen.com/Article_Will my travel insurance cover me if my airline goes bust? _1418.aspx

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1stoptravelinsurance.co.uk provides cheap annual travel insurance with cover to travel as many times as you like for up to 45 days at a time.

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