Direct Line travel insurance includes failed airline cover Go compare with our comparison table

Direct Line travel insurance includes failed airline cover

18 December 2009 / by Rachael Stiles

Direct Line has announced that its travel insurance will now cover the collapse of airlines, following another in a long line of financial failures in the air industry this year.

More than 60 airlines have gone bust in the last two years, leaving passengers out of pocket, and often stranded abroad if they happened to be on holiday when the airline went out of business.

Passenger who take out Direct Line travel insurance will now be protected against this, including the cost of a return flight if they are abroad whenat the time.

Included in the cover will also be the failure of a host of other firms, including theme parks, hotels, ferry companies, excursion providers, villa rental companies, and car hire providers.

The announcement follows the news this week of yet another airline, Flyglobespan, having their planes grounded after going bust, leaving thousands of people stranded on holiday, having to pay for another return flight and additional accommodation.

Jennifer Thomas, spokesperson for Direct Line travel insurance, said: "Holidaymakers are understandably looking to spend less on travel these days, and booking directly with airlines and hotels can be a good way of getting more while spending less."

But, she warns, booking direct means it is more essential than ever to have insurance in case these firms fail.

Commenting on the new cover, Ms Thomas added: "With our updated travel insurance policies, our customers can now travel with increased peace of mind, knowing that they will be covered in the unfortunate event of a supplier's collapse."

© Fair Investment Company Ltd

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