Flight price rise 'could affect travel insurance customers'

Tuesday, 27 April 2010

Bad news for travel insurance policyholders – flight prices are expected to rise by 5.2 per cent because of the recent volcanic ash problems, it has been claimed.

New data produced by the Centre for Economics and Business Research (CEBR) has revealed that travel insurance customers may pay additional costs on the average price of a plane ticket, which will be an extra £1.8 billion spent in the UK.

Flight cancellations and disruptions in Europe lead to around 82 per cent less flight activity in the airspace, according to research from Kelkoo UK.

This cost will mainly be borne by the airlines in Europe, which will affect their profitability, thus increasing prices for travel insurance holders.

Anyone with a Swiftcover travel insurance policy who is still stranded abroad can claim £50 per person for the first 24-hour delay they incur, followed by £25 for each subsequent delay of 24 hours.

Up to £400 per person can be claimed in total from a Swiftcover travel insurance policy, but people should refer to the exact wording on their travel insurance document for further details.

Posted by Rebecca Mellor

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