What Happens If My Holiday Provider Goes Bust
If you book a package holiday with a UK-based firm then you wont lose any money as long as the company was ATOL-protected.
ATOL is a scheme run by the UKs airline regulator: the Civil Aviation Authority . Find out more about;making a claim from the;CAA website
Generally, flights booked directly with an airline and some flight-only bookings with your tour operator will not be protected unless you have received an ATOL protected certificate with your booking.
Can I Get A Refund Paid To My Credit Card Transferred To My Bank
Those who receive holiday refunds get it returned to the payment method used. This can often mean being £1,000s in credit on credit cards. And many have contacted us worried that they’ll pay the usual 3%-ish fee to pay this into their bank account; yet those are;money transfer;fees, for shifting debt.
If you’re significantly in credit, you should be able to ask your provider to transfer the credit back into your bank account free of charge. You can do this by getting in touch with your provider directly and requesting a “refund of credit balance”.
All the providers we spoke to, including major names such as;Barclaycard,;HSBC;and;Lloyds, told us they offer this service to customers.
But if your provider refuses to transfer your credit back to you for free for some reason, you can appeal to the Financial Ombudsman; and do so on the grounds that it’s not following standard industry practice. There’s full info on how to do this in our;Financial Ombudsman;guide.
Travel Insurance Refunds Due To The Coronavirus Outbreak
The Foreign and Commonwealth Office has advised against all but essential travel indefinitely as a result of the Coronavirus pandemic, meaning that many holidays and trips will be cancelled in the coming months.
If your holiday has been cancelled and you have already sorted out a refund, or you arent planning on booking a holiday this year, you may not need the travel insurance that you have purchased.
If that is the case and you have a travel insurance policy that you can no longer use, you may be able to get a partial refund or amend the dates that your cover is valid for.;
Keep the following points in mind:
You will need to request a refund, it wont be issued automatically
Only cancel your policy if you are 100% sure you wont need your insurance
Some providers will offer full or partial refunds , while others might only allow you to change your policys dates
How Can You Get A Refund
The best way to make this policy cancellation a fast process is to reach out to the travel insurance company or the comparison site you used to purchase the policy. Sometimes, its best to email the providers customer service, since they might require a written request. You can find your travel insurance providers contact information is on the policy documents you were sent via email the day you purchased your travel insurance.;Once a refund has been approved, the refund is often credited to the card the travel insurance policy was purchased with.
Can You Cancel Travel Insurance
Its the answer you want to hear yes! Something thats really helpful to know when considering purchasing travel insurance is that it comes with a built-in return policy, called a free look period. Unlike a brick-and-mortar return policy with return limitations after youve opened the packaging, youll be able to cancel your travel insurance plan without a hitch, despite the reason of cancellation. The look period length depends on the travel insurance provider, but youll typically have 10-14 days after the purchase date to decide whether or not you want to cancel your insurance.
Youll want to be cautious if you have intentions to file a claim with your insurance company before cancelling though. Providers cant cancel a policy if there is an open claim or intention to submit a claim on the plan.;
PRO TIP: Use the free look period to actually review your travel insurance certificate of insurance. This way, you have a complete understanding of what is included and excluded from the policy and the steps to take if there is a travel or medical emergency during your trip.
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Which Travel Insurers Are Offering Refunds
If you booked your insurance within the last 14 days, then as usual you’ve the right to cancel the policy under ‘cooling off’ rules; though firms can charge an administration fee.
For other policies, your chances of getting a refund depend on the insurer and whether your cover is annual or single trip. Here’s what some of the big insurers told us; unless otherwise stated, the info for each insurer applies to all its policies regardless of when they were issued:
Refund Of Insurance Cost After Trip Is Cancelled
Travel insurance, specifically the trip cancellation coverage within that, is meant to cover the prepaid, non-refundable costs for the travel arrangement such as airfare, cruise cost, tours, excursions, hotel reservations, and so on. The cost of the travel insurance itself should not be included because the cost of the travel insurance is not insurable under the trip cancellation benefit of travel insurance.
Therefore, if you need to cancel your trip for a covered reason, you would receive a refund for your prepaid and non-refundable costs, but not what you paid for the travel insurance.
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So Can You Cancel Travel Insurance
In a simple word, yes. Yes you can cancel travel insurance. But you cant simply cancel travel insurance whenever its convenient; youll need to cancel your policy within a period of time called a Review Period. This window of time begins at the moment of your purchase and ends at a time determined by your travel insurance provider.1
For example, with Allianz Global Assistance, the review period is 15 days for most states. If youre not completely satisfied, you have up to 15 days to request a refund, as long as you haven’t departed for your trip or filed a claim.
Can You Get Your Money Back From Your Travel Agent
With international travel bans in place due to COVID-19 and the government advising restricted local travel, it may become impossible for travel providers to deliver prebooked flights, tours, cruises and accommodation, let alone for you to travel.
- You are more likely, but not always, eligible for a refund or credit once a travel provider, such as an airline, cruise line or hotel, has cancelled the service you were due to receive.;
- If you cancel the trip before the provider does, it may be deemed a ‘change of mind’ and your options for a refund or credit may be reduced.
So if you think your trip won’t proceed because of travel bans, or you’re worried about travelling amid COVID-19, speak to your travel agent about your options.
The Australian Competition and Consumer Commission has advised that it expects refunds to be provided where:
- the terms and conditions at the time of purchase specify you are entitled to a refund
- you bought a ticket that was promoted as refundable
- you were told you would receive a refund, even if the business later changed their mind
- you have a right to a refund under state or territory legislation or common law.
With the latter point, read the terms and conditions of your contract as it may contain a ‘force majeure’ clause outlining what happens when the services can’t be delivered due to an event outside everyone’s control.
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Refund Credit Notes Are Protected
The Government and the Air Travel Trust will protect credit note refunds issued since;10 March 2020;for ATOL-protected bookings that were cancelled due to the coronavirus pandemic, meaning those who accept them will get their money back if the travel firm goes bust.
If you opt for a refund credit note, you can choose at any point up to 30 September 2022;to cash it in for a refund or to rebook another trip instead . The Government’s said it would give a month’s notice before ending the scheme.
See our Government to protect refund credit notes MSE News story for full info on how to check if your refund credit note is protected.
What If I’ve Booked A Trip For Multiple Households
If your holiday is to and from a permitted area, but would break the rules because the travellers are from multiple households, CMA guidance suggests you’d be owed a refund .
When we checked back in September 2020, all the major UK firms we’d spoken to said they would pay out see more details in our Social gatherings of more than six banned your refund rights;MSE News story.
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Does Travel Insurance Cover The Cost Of Any Covid Testing As A Requirement To Enter Or Exit A Country Such As The Cdcs Testing Requirements For Air Passengers Entering The United States That Are Effective January 26 2021
No, travel insurance will not cover the cost of a general COVID-19 test that may be required for travel. However, Medical Expense may cover testing in the event a policyholder becomes ill during a trip and a test is ordered by a physician as part of a diagnosis. Coverage is subject to the terms and conditions of your insurance policy. Please click here to access a copy of your policy.
Does My Travel Insurance Cover Covid
Travel insurance providers won’t cover you for COVID-related trip cancellations such as government-enforced border closures, lockdowns or travel delays.
However, we looked at 15 different insurance policies and found 7 that provide you with a refund related to a positive COVID-19 diagnosis.
Don’t forget, travel insurance can also cover lost luggage, theft and unexpected medical costs. It can reimburse you if you need to cancel your trip for other valid reasons as well. Compare policies here or check out the ones below offering cover pandemic-related expenses.
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If Youre Offered A Voucher Instead Of A Refund
Its usually best to ask for a refund instead;- you should contact the company you booked with and ask. They have to give you a refund if youre entitled to one – for example, if they cancelled your travel.
If youre thinking of accepting a voucher, check the terms and conditions, including:
- when the voucher expires
- whether you can change your mind later and get a refund
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See the section above for more information on getting a refund from your holiday company.
If you paid for your holiday by credit or debit card, some travel insurers might ask you to make a claim with your card provider before making an insurance claim.
Making a claim with your credit card provider could mean you get more of your money back. Unlike an insurance claim, a claim with your credit card provider under Section 75 will not require an excess payment or limit your claim .
Youll also be able to get money back for anyone you also booked for on your card who doesnt have or isnt covered by your travel insurance.
See above for more information on making a refund claim with your card provider.
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Travel Firms Should Refund You For Cancelled Trips Though Many Have Dragged Their Feet
As a general rule, if you’ve paid for a trip and then the travel firm cancels, you should be due a refund. Yet that hasn’t always proved easy with cancellations due to the pandemic. While coronavirus has been devastating across the travel industry, firms have been treating customers in very different ways; as shown by several major MoneySavingExpert.com surveys we ran last year.
Can I Get A Refund From My Credit Card Provider For A Cancelled Holiday
If you booked a holiday or flights costing between £100 and £30,000 and paid either a deposit or the full price on your credit card, you may be able to make a claim under Section 75 of the Consumer Credit Act 1974. This applies if the airline or holiday company goes bust or the holiday is cancelled.
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Refunds For Unused Travel Insurance During Coronavirus
Amid the Coronavirus outbreak, many of the biggest travel insurance providers in the UK are offering pro-rata refunds to customers who want to cancel their policy.
You may be able to get some money back, but cancelling your travel insurance isn’t a decision that should be made lightly, and there are a few things you need to consider before doing so.
Is Travel Insurance Sometimes Worth It
There may still be instances when travel insurance is a smart move. For example, if you have medical insurance, it most likely won’t cover travel outside of the U.S. If youd like medical coverage while on an international vacation, purchasing a stand-alone travel medical insurance policy could be a good option.
Travel insurance can also make sense if your trip includes several destinations and mixed plans. Let’s say youre going on a two-week trip to Argentina to hike in Patagonia and then wrap up in Buenos Aires. If, halfway through the trip, you fall and sprain your ankle, you may need emergency medical care, and perhaps also to cut your trip short and fly home early. In an event like this, trip interruption and emergency medical;coverage are your best friends.
Trip interruption coverage will reimburse you for the unused portion of your hotel stay in Buenos Aires and a last-minute flight home. And the medical benefits will reimburse international health care bills.
» Learn more:Trip interruption insurance explained
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How Do You Enforce Your Rights
If you think you’re being charged an unreasonable cancellation fee or treated unfairly, complain to the business and direct them to the ACCC best practice guidance. Advise that if you don’t get a satisfactory remedy, you will escalate your complaint to the;consumer affairs body in your state.
What Are Travel Providers’ Cancellation And Rebooking Policies
The table below covers the cancellation policies of major travel firms, split into your rights when the firm cancels and your rights when you cancel this applies for usually inflexible tickets.
Be aware though that the situation is changing fast, so it’s best to double-check with your travel provider directly before making any decisions:
Can I Cancel My Policy And Get A Refund
If you cancel your Budget Direct policy within 14 days of buying it the cooling-off period youll receive a full refund of your premium payment, as long as:
- your trip has not commenced, and/or
- you have not made a claim.
If you cancel after the cooling-off period, your payment will not be refunded.
Can I Claim These Costs On My Insurance
If you’re abroad for longer than planned due to your return journey being disrupted by travel bans, insurers we spoke to said your cover would be extended.
But while this means you’ll continue to be covered under the usual terms of your insurance so for example, you should be able to claim for emergency medical expenses insurers we spoke to said you won’t be covered for extra costs incurred by having to stay longer, such as extra accommodation or travel.
It’s still worth checking with your insurer but most policies won’t cover you for coronavirus-related cancellation if you took out the insurance and booked your trip after mid-March 2020. As insurance only covers unknown events, that’s the period most classed the pandemic as a ‘known event’.
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Request A Travel Guard Refund By Email
If you want to submit a request for the Travel Guard premium refund, you will have to inform the provider in writing. The process usually involves these steps:
Be prepared for a possibly lengthy exchange with customer service representatives.;
Can Travel Agents Keep Your Deposit
“We have paid a deposit for a two cities tour of Russia. Our travel agent said that if we do not pay the balance, they will cancel and we will forfeit our deposit of approximately $1300. We cannot possibly pay at this time because we may not be able to travel at all” Kerry O’Leary, CHOICE member
This depends on the terms and conditions of the contract with the travel agent and whether a frustration of contract would apply.;
If it does apply, deposits should also be refundable in cash or other means, such as a credit voucher.;
In addition, the ACCC advises deposits should not be more than 10%, unless the travel agent can justify a higher amount due to potential loss or inconvenience.;
A higher amount may be deemed a prepayment, and prepayments are refundable, less any reasonable cancellation fees.
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