Confused.com - Collapse of Sun4U

Steve Williams, head of travel at Confused.com says "With around 12000 holidaymakers believed to be currently in Spain, it's not clear whether they will all be able to continue their holidays.

Reports are coming in that hotels are insisting customers pay again for holidays they believed had been paid for by Sun4u.

Sun4U offer both package holidays and act as a travel agent selling flights and hotels predominantly to Spain. Those who booked a package deal will be covered by ABTA or the ATOL scheme. Customers who are currently abroad should contact the Civil Aviation Authority for further information.

Unfortunately those customers who have booked with Sun4U and haven't yet departed may find they have to wait some time to get their money back from the ABTA/ATOL schemes as there will be many claims that need to be dealt with. Whilst the delay is inconvenient, it's important to remember that ultimately they will not end up out of pocket.

Customers who have only booked a flight with Sun4U may find they have less protection than they'd have imagined as ABTA/ATOL cover packaged deals rather than the separate elements of the trip, e.g. flight only or hotel only. Customers in this situation should contact their travel insurance provider and find out what they are covered for. Customers with no travel insurance may pay a heavy price for taking a risk.

If you haven't bought travel insurance and are affected by Sun4U then unfortunately it's too late for you as travel insurance providers don't cover instances where a customer was aware prior to taking out their insurance of a reason why they can't travel.

If you have travel insurance, read your policy document to see what you are covered for and what's not. Keep any receipts or correspondence you have as you may need these later on and pay particular attention to the following

General Exclusions in your policy

Cancellation cover

The claims process - what evidence you need to supply, what action you need to take etc...

If you do not have a copy of your travel insurance policy wording, most providers have a copy on their website.

Confused.com has copies of all its' providers policy wording on the prices page which will make it easier for customers to check what they are covered for.