Travel insurance still vital despite volcanic exclusions

Commenting on the fallout of the volcanic eruptions on travellers, Rachael Stiles, Personal Finance Editor at Fair Investment Company said: "Even though some travel insurance policies taken out since the Icelandic volcano Eyjafjallajokul first erupted on 15 April will not cover claims resulting from it, it is still a vital part of every trip.

"The volcano might have caused mass disruptions, but this will not make any difference to other factors which continue to cause people to claim on their travel insurance every day, such as illness, injury, or delays and cancellations for reasons other than volcanoes.

"Furthermore, there are still some travel insurance providers which have said they will pay out for claims resulting disruptions of volcanic proportions, so in some instances you can still get covered for it."

"For example, Saga travel insurance is taking each volcanic eruption as a separate incident - if you take out travel insurance when there are no flight disruptions and then the next day the volcano causes further problems then you will be covered. However if you take it out while disruptions are already ongoing then you will not be covered for claims relating to the volcano."

"Volcanoes aside, going abroad without travel insurance can have serious financial repercussions; emergency repatriation from the US can cost as much as £35,000, or just a broken leg skiing in Europe could set you back £1,600.

"Ultimately, this is a reminder that travellers should always compare travel insurance policies to make sure they get a level of cover which suits their requirements."