If you think travel insurance covers insolvency you’re not alone. Most travellers expect their insurance to cover airfares, tour bookings and accommodation if a company collapses – but unfortunately, and to quote the Rolling Stones… you can’t always get what you want.
Most standard policies do not provide protection for insolvency, collapse or default of airlines, travel agents, wholesalers, cruise operators, tour operators, hotels, car hire companies, railways or theme parks.
Trying to get your head around what insurers mean when they say ‘they DO cover for insolvency of a travel service provider’, but DO NOT cover for financial collapse of any transport, tour or accommodation provide is tricky to say the least’.
Don’t worry it’s not all bad news – you can get what you need. You just need to know where to look and that’s where we come in. We’ve put together a table explaining who-covers-what below to make it a bit easier to understand. SCROLL FOR MORE INFORMATION.
Who’s at risk?
If you’re a do-it-book-it yourself kind of traveller and buy your flights direct with an airline then you’ll be the most vulnerable when it comes to protection. If you use a travel agent to book your holiday and the airline goes bust, you might be able to get a refund through the agent, or they might help to get you get home if you’re stranded overseas.
Pay with your credit card
Even if you do tend to book your travel arrangements yourself, a good way to ensure protection is to pay using a credit card. The credit card company might be able to recover your money or you might be able to claim under your credit card insurance. Try not to buy your travel arrangements using a debit card as they don’t provide the same level of protection.
Help is at hand
In some states and territories programs are in place where you may be able to apply for compensation for insolvent companies. Contact the Australian Competition and Consumer Commission for more information.
Who’s covers it?
Onto the nitty gritty – who covers what?
Mouseover the ticks and crosses for more details on each.
Do they offer it?
|1Cover||Certain underwriters at LLoyd's|
|1300 Insurance||Auto and General|
|1st for Women||Chubb Insurance Australia Limited|
|AIG||AIG Insurance Limited|
|Allianz||Allianz Australia Insurance Limited|
|American Express||Chubb Insurance Australia Limited|
|Aussie Travel Cover||Allianz Australia Insurance Limited|
|Australia Post||Great Lakes|
|Australia Seniors||Chubb Insurance Australia Limited|
|Boomers||Allianz Australia Insurance Limited|
|Budget Direct||Auto and General|
|Citibank||Chubb Insurance Australia Limited|
|Columbus Direct||Certain underwriters at LLoyd's|
|Cover-more||Zurich Australian Insurance Limited|
|Chubb Insurance Australia Limited||Chubb Insurance Australia Limited|
|Downunder||Allianz Australia Insurance Limited|
|Easy Travel Insurance||QBE Insurance Limited|
|Fast Cover||Hollard Insurance Company Pty Ltd|
|Go Insurance||Certain underwriters at LLoyd's|
|Insure4Less||Certain underwriters at LLoyd's|
|Insure and Go||Mitsui Somotomo|
|itrek||Certain underwriters at LLoyd's|
|Jetstar||AIG Insurance Limited|
|Kango Cover||Certain underwriters at LLoyd's|
|Nib||Certain underwriters at LLoyd's|
|No Worries||Certain underwriters at LLoyd's|
|On Tour||AIG Insurance Limited|
|Online Travel Insurance||Allianz Australia Insurance Limited|
|Priceline Protects||Chubb Insurance Australia Limited|
|Qantas||QBE Insurance Limited|
|QBE||QBE Insurance Limited|
|Real Insurance||Hollard Insurance|
|Simply Travel Insurance||Certain underwriters at LLoyd's|
|Ski Insurance||Allianz Australia Insurance Limited|
|Southern Cross||Southern Cross Benefits Limited|
|STA Travel||Allianz Australia Insurance Limited|
|Sure Save||Certain underwriters at LLoyd's|
|TID||Certain underwriters at LLoyd's|
|Tick travel||Mitsui Somotomo|
|Travel Insurance Saver||QBE Insurance Limited|
|Travel Insuranz||Certain underwriters at LLoyd's|
|Traveller||Chubb Insurance Australia Limited|
|Under 30||Certain underwriters at LLoyd's|
|Virgin Australia||Great Lakes|
|Virgin Money||Allianz Australia Insurance Limited|
|Webjet||Allianz Australia Insurance Limited|
|Westpac||Allianz Australia Insurance Limited|
|Worldcare||Allianz Australia Insurance Limited|
|World Nomads||Certain underwriters at LLoyd's|
Read the small print
We’ve simplified the insurer’s policy wording in the table above, but this doesn’t mean you can get away without reading it. We know it’s not a great read on a Sunday morning but it’s really important to understand the cover you’re purchasing – so give your insurers PDS a read! If you’re not sure that you understand the conditions you can always call the insurer for advice before buying online.
Compare to find the right cover
Shop around for insurance to make sure you are getting the right cover for your travel needs. You can use comparetravelinsurance.com.au to compare over 20 Aussie insurers in seconds. Yippee!
An insolvent company is one that is unable to pay its debts when they are due. The three most common insolvency procedures are voluntary administration, liquidation and receivership.