Monthly Archives: April 2010

One price comparison website is reporting that the aftermath of the volcanic ash clouds from Iceland has not only led to more interest in taking out travel insurance, but has prompted more people to consider so-called "premium policies".

That name doesn’t refer to the money paid by the policyholder, but rather the level of cover taken out and the type of optional extras added to the policy. These include cover for delays, both in terms of compensation for lost holiday and in covering expenses that are incurred such as hotel costs.

According to Moneysupermarket.com, traffic to its travel insurance site rose 26.56% during the time that flights were grounded. As it’s a price comparison site, this appears to be down to people actively seeking to take out insurance, rather than merely checking up on existing policies.

It’s important to note that while events such as the ash clouds will focus people’s minds on the general issue travel insurance, such freak events aren’t always covered. They can be classified as a disaster or act of God, which is why prospective travellers must always check the small

The closure of all British airspace over safety fears after volcanic ash drifted over Britain has left passengers consulting their travel insurance policies.

European laws require airlines to offer customers a full refund or a transfer to a new flight after such a cancellation. They are also required to offer some meals or refreshments in the event of a lengthy delay.

However, some associated costs are not the responsibility of airlines and instead fall to travel insurance. These include accommodation and hire car rentals which can’t be used if a holiday has to be cancelled because of a delay.

Whether insurers cover this varies from policy to policy. Aviva has already said its policies only cover cancellations which are down to individual circumstances such as family illness or bereavement. Other companies, including RBS, say that they will consider claims. The incident is likely to be classified as either an "act of God" or a "catastrophe", which means many insurers may retain discretion about paying out on policies.

Travelers have also been warned against taking out insurance solely as a result of the ash cloud. Insurance only covers unforeseen events and thus any policies bought now will not cover losses that directly