Half of UK travel insurance policies do not cover passengers against Wow Air closure

As the Icelandic budget carrier closes, analysis reveals that almost 50% of insurance policies do not protect against airlines going bust

An independent financial information company has warned that 46% of travel insurance policies do not include protection against airline failure, which means many Wow Air passengers will not be covered for cancelled flights as a result of the airline’s closure on Thursday.

Defaqto, which rates products including travel policies, has said that travellers are often left unprotected by policies that don’t cover against airlines getting into financial difficulty. Only 48% of annual and 47% of single-trip policies include this as standard, often describing it as “scheduled airline failure” cover. A small number of insurers also offer this as an optional extra (in 6% of annual and 7% of single-trip policies). Fine print may also include cover for “travel disruption”, when a passenger can’t reclaim the costs from another source.

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