Why travel insurance news matters before you book
Travel cover is the part of a holiday most people never think about until something goes wrong. When an airline or tour operator fails, when severe weather grounds flights or when the government changes its advice on a destination, the difference between getting your money back and losing it often comes down to how you booked and what your policy says.
Two protections sit alongside travel insurance and are easy to confuse with it. ATOL covers most package holidays that include a flight, so you are looked after if the operator collapses, while flights paid for on a credit card may be protected under Section 75 of the Consumer Credit Act. A standard travel insurance policy may or may not include scheduled airline failure cover, so it pays to check before you buy.
Following these stories helps you choose a policy that matches the trip, buy it as soon as you book rather than at the airport, and know who to claim from if plans fall apart.
ATOL, Section 75 and travel insurance: who pays when?
The lesson of past operator failures is that no single protection covers everything, and which one applies depends on how you booked. If you bought a package that includes a flight, ATOL is usually the first line of defence: it covers refunds for trips not yet taken and arranges to bring you home if you are already abroad. ATOL does not, however, reimburse a medical bill or a cancelled trip caused by illness, which is where travel insurance comes in.
Payment method matters too. Spending more than £100 on a credit card can trigger Section 75 of the Consumer Credit Act, which makes the card provider jointly liable if the company you paid fails to deliver. Smaller amounts, and many debit card payments, may instead be recoverable through chargeback. The practical rule is to know, before you travel, which of these protections covers your trip and to keep the booking confirmations that prove it.
Choosing cover that will actually pay out
The cheapest travel policy is not the one that saves you money if it fails to cover the trip you are taking. Check that the medical limit is high enough for your destination, that any pre-existing conditions are declared and accepted, and that the activities you plan, from skiing to scuba diving, are included rather than excluded. A policy that looks a few pounds cheaper can carry a much higher excess or leave out the very cover you need.
It also pays to match the policy to how you travel. Frequent travellers often save with an annual multi-trip policy rather than buying single-trip cover each time, while families and couples can usually insure everyone on one policy. Our travel insurance guides explain the differences, and keeping an eye on travel news helps you avoid booking into a problem that your cover will not solve.
Travel insurance FAQ
The Selectra team answers your questions
Not always. Standard travel insurance may exclude airline or operator failure unless it specifically includes scheduled airline failure cover, so it is important to check the policy wording. If you booked a package holiday that includes a flight, ATOL protection usually covers you instead, and flights paid for on a credit card may be protected under Section 75 of the Consumer Credit Act.
ATOL is a government-backed scheme that protects most package holidays which include a flight. If the operator collapses, ATOL makes sure you are not stranded abroad and that you get a refund for trips you have not yet taken. Travel insurance is separate: it covers things like medical emergencies, cancellation and lost baggage. You can be ATOL-protected and still need travel insurance for everything ATOL does not cover.
Buy it as soon as you book the trip, not just before you travel. Cancellation cover is one of the main benefits, and it only protects you for things that happen after the policy starts. Booking early means you are covered if you have to cancel for an insured reason, such as illness, well before the departure date.
Most travel insurance becomes invalid if you travel to a destination the Foreign, Commonwealth and Development Office (FCDO) advises against visiting. If the advice changes after you book, check your policy and contact your insurer, because cover and cancellation terms vary. Following travel news and FCDO updates before you commit helps you avoid buying cover that will not pay out.
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