Holidaymakers are advised to look for insurance that covers against insolvency as many people may find they are not protected if their holiday company goes out of business, says the Civil Aviation Authority (CAA).

David Clover, a spokesperson for the CAA, said people travelling abroad this summer should try to find an insurance policy that provides a range of protection.

Even if a policy does cover insolvency, it may only provide limited protection so customers may receive a refund for a lost flight but not for the cost of additional flights or accommodation.

According to holidayadvice.org.uk, more than 25 airlines have gone bust since 2000 and it is unlikely that customers received a refund if they booked directly with them rather than going through a tour operator.

Mr Clover advises: "You need to shop around for an insurance policy which can give you a varying range of protection; you need to look very closely at the small print."

Posted on: [ May 02, 2008 ]                     

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