The events of the last week can only be a good advert for package holidays – although they take the adventure out of a lot of travel – when things go wrong you can usually rely on someone else footing the bill and sorting out the logistics.
This week I’ve read reports on package holidaymakers being upgraded to all-inclusive resorts for a few days because no new guests are getting flights into these resorts, while independent travellers have to fend for themselves.
Travel Insurance and Volcanoes
Volcanoes and other natural disasters are often not covered by travel insurance policies when it comes to cancellation or delays, so you could literally be left footing the bill! However, if your flight is cancelled, most airlines will offer you either a full refund or an alternative flight. If your flight is cancelled and you do not travel, most travel insurers will refund your premium if you took out a single trip policy.
HSBC, M&S Money and first direct have decided to offer cover to those affected by the volcanic ash, as well as some other providers – who do not normally offer cover. You can read more at Moneyexpert.com on Travel Insurance.
With cash tight for a lot of stranded holidaymakers, who even if they are covered by their insurance will have to wait a long time to receive payment, many of the banks have offered to waive certain international banking charges, but many people, particularly with a loss of earnings if they are docked wages will have to take up additional loans or credit card debt for the short term, possibly even short term lending like payday loans.
There is also some extra information on what is and what isn’t covered by your travel insurance here.