Holiday refunds “unlikely” if travellers have to self-isolate, experts warn
Holiday bookings and travel insurance could be affected
3rd July 2020 12:50
by Brean Horne from interactive investor
UK holidaymakers risk losing money as travel companies are unlikely to give refunds for self-isolation due to coronavirus, a consumer expert warns.
Package holiday firms and travel insurance providers are not likely to cover cancellations due to someone developing coronavirus symptoms by the time they need to travel.
People considering booking a holiday soon will be “bearing all of the risk,” Alex Neill, chief executive of Revolver, told the BBC.
"It is likely that new travel insurance policies won't cover you if you develop symptoms before going on holiday - and if the flight or packaged holiday isn't cancelled then you have no automatic right to compensation," she says.
Blanket restrictions on non-essential overseas travel are expected to be relaxed in the UK.
People arriving in England from more than 50 countries including France, Germany, Italy and Spain will no longer need to quarantine from 10 July, the Department for Transport has confirmed.
Can I get travel insurance protection?
A handful of travel insurance companies have recently announced that they will now offer cancellation cover for holidaymakers affected by coronavirus. These include Trailfinders, CoverForYou, Cedar Tree and Outbacker.
The Post Office and Saga have both introduced limited Covid-19 cover which pays medical expenses and repatriation costs if holidaymakers fall ill with the virus during a trip abroad in early June.
But if you decide to travel to a country on the Foreign and Commonwealth Office (FCO) ban list your travel insurance will be invalidated and you will not be able to make a claim.
There are 188 insurers offering annual travel cover and 161 offering single trip policies, according to the latest figures from financial information business Defaqto.
Experts advise that you check the details of your trip with an insurance provider to ensure you get the right cover.
Brian Brown, consumer finance expert at Defaqto, says: "If you book a holiday now, while the FCO is telling you not to travel, and that advice remains in force when your time to travel comes, you will have no cover under any circumstances."
This article was originally published in our sister magazine Moneywise, which ceased publication in August 2020.
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