DIY holidays not fully covered
Chances are you are either putting together a holiday online right now, or you will have done in the last six months. More and more of us are taking advantage of cheaper airline tickets with low- cost carriers, and shopping around for hotels too. With the rise of the "DIY holiday", there are risks involved, and you should be aware, there are some situations that can arise where travel insurance won't pick up the bill. But there are other types of protection that may be available to you. Here are the most common two:
ATOL PROTECTION
This stands for Air Travel Organisers Licensing. It's run by the Civil Aviation Authority, and you can find more information about ATOL on the CAA website.
ATOL protects you from losing money, or being stranded abroad without a flight home, on licensed air holidays. All licensed firms have to put funds in place in the form of bonds with the CAA so that if they go out of business, the CAA can give refunds to people who can't travel and arrange for people abroad to finish their holidays and fly home.
If you book flights six months in advance, and the airline subsequently goes out of business, ATOL protection will ensure you get a full refund. Most travel insurance policies don't cover you for cancellation, or curtailment when it's caused by airlines going bust, and we know this can happen.
Without ATOL protection on a flight, if something were to happen to the airline, you might have to arrange your own flight home; inconvenient and doubtless more expensive than your original booking. How can you make sure you are covered against this happening? Well, unless you can find travel insurance which caters for scheduled airline failure, then book a package through an operator licensed by ATOL, and remember: if you book directly with an airline, you are not ATOL protected. Look for an ATOL logo in adverts and brochures.
ABTA PROTECTION
ABTA stands for the Association of British Travel Insurers. Visit the ABTA website for an outline of this financial protection.
Another way you can try and safeguard your holiday is by booking with a Travel Agent who can offer ABTA protection. Many travel agents will be members of the ABTA, but you will need to ask your particular provider what protection they offer. They may well have an ABTA bond in place which will protect customers if an agent or provider makes significant changes to your travel arrangements - after you have booked. Also, ABTA protection will cover you if the agent goes bust during your holiday, they will arrange for the vacation to continue or get you home!
Summary of the different forms of protection:
| Protection scheme | How to get it | Main types of cover |
|---|---|---|
| ATOL | Incorporated when booking with licensed travel organisers/agents in the UK. | For flights and air holidays booked by UK tour operators. Refunds, alternative flights, if airlines go out of business prior to a booked flight, or during a holiday |
| ABTA | By booking with a travel agent offering ABTA protection | Concentrates on non-air travel; coach and ferry packages. If tour operator or travel agent goes bust during a holiday, you can continue the holiday as originally planned, or they will get you back home (if they have ABTA protection in place) |
| Travel Insurance | Online, low cost quote | Medical expenses, personal accident cover, loss of passport, money, baggage, personal liability |
