Travel cover for ash cloud disruption varies widely, says Defaqto
As a result of the recent Icelandic volcanic eruption, many people who are intending to travel over the coming days face potential flight and holiday cancellation. At the very least, a large number of holidaymakers are likely to experience flight delays.
According to independent financial research company Defaqto, single and annual trip travel insurance policies vary widely in how they treat ash cloud-related disruption.
As a result, it is important for holidaymakers to check the insurance they have in place to determine:
Whether their policy considers the ash cloud to be a weather-related event and therefore provides cover at all, or whether the policy expressly excludes ash cloud events
If the policy does cover this, what level of cover it provides as there is significant variation between policies in terms of the protection they offer
Defaqto data shows that cover for holiday abandonment and delays varies widely across single and annual trip travel insurance policies. Therefore, the extent to which people will be protected against ash cloud-related disruption, where covered by their policy, will very much depend on the type and level of cover offered within their policy.
According to Defaqto research:
Travel delay
If a flight is delayed:
12% of single trip policies provide no cover towards the cost of food and other expenses, for example, while holidaymakers are waiting in the airport. Of those policies that do cover this, 25% provide cover of £100 or less
In terms of annual trip policies, 9% provide no cover towards expenses people may incur while at the airport. Of those policies that do cover this, 22% provide cover of £100 or less
Holiday abandonment
If a holiday is completely cancelled as a result of the disruption:
40% of single trip policies provide £5,000 cover or more for the cost of the holiday, 14% offer cover of less than £2,000 and 12% provide no cover
51% of annual trip policies provide £5,000 or more towards the cost of the holiday, 14% provide cover of less than £2,000 and 1% of policies offer no cover at all for this
Mike Powell, Defaqto's Insight Analyst for General Insurance, said: "The Icelandic volcanic eruption could potentially impact many holidaymakers over the coming days. A key issue is the extent to which someone's travel insurance policy will cover them for any disruption they suffer as a result. Our data shows significant variation in the level of cover that policies offer for travel delays and holiday abandonment, which are two of main consequences travellers are likely to experience. However, and perhaps more importantly, is how someone's travel insurance policy will treat ash cloud-related claims and whether they will offer any cover at all.
"For anyone that has already been or may be affected, it is important that they review their policy to check whether they are covered for ash cloud-related disruption and, if so, what level of cover their policy will provide. As always, the devil is in the detail. If holidaymakers are unsure, it is worth speaking to their insurance provider to get clarity on how they would treat any claims relating to the affects of the ash cloud."
Defaqto's Star Ratings for single trip travel insurance provide an independent rating of all policies on the market. Taking a wide range of features and benefits into account, Defaqto has given each policy a rating from 1 to 5 depending on how comprehensive they are. Star Ratings aim to help people identify the right level of product for them, whether this happens to be a 1, 2, 3, 4 or 5 Star Rated product.
For more information, visit defaqto.com/star-ratings/travel-insurance to access the ratings.