77% of travel insurance policies do not cover scheduled airline failure

A recent report by independent financial research company Defaqto suggests independent holidaymakers should seriously review their travel insurance policy to see whether it covers the failure of scheduled airlines as only about 20% of insurance policies provide this feature.

Brian Brown, author of the report and Head of Research at Defaqto said: "While many give cover of £1,500 or more for scheduled airline failure the limit may not be sufficient to cover all of the other pre-booked and paid for items such as hotel accommodation, excursion tickets and car hire so it is essential that travelers review the details of their policy before they set off on their travels."

Defaqto encourages consumers to consider the following which could also help give some peace of mind when booking holidays this season:

1. Travelling with an ATOL or ABTA bonded organization offers considerably more protection than independent arrangements as the problems of airline failures and the volcanic ash cloud have highlighted.

2. Travelers should use their credit card when booking as using a credit card on purchases of £100 to £30,000 provides some statutory protection if the company or supplier goes bust or if there is a problem with the goods or services.

Mr Brown concluded: "Not everyone has the same needs for their travel insurance arrangements so it is important to take some time to review features carefully. We reviewed 885 products for our travel insurance Star Ratings across single trip, multi trip and gap year travel so there is a lot of choice available. Consumers can use our Star Ratings as a guide to what is on offer. 1 or 2 Star Rated policies offer a lower level of features than 4 or 5 Star policies."