When booking a flight, it’s easy to assume that everything will depart as planned. However, unexpected events such as airline bankruptcies can leave travelers stranded and out of pocket. That’s where scheduled airline failure insurance (SAFI) comes in. But do you require it? Let’s take a closer look.
Do I need scheduled airline failure insurance?
Scheduled Airline Failure Insurance (SAFI) is like a safety net for your travel plans. It’s there to help you out if the airline or travel agent you booked with goes out of business. Here are some easy-to-understand points to keep in mind:
Why it’s helpful: If you’re booking your flights directly with the airline and separately arranging your stay, car rental, and activities, you might lose money if the airline goes under. SAFI steps in to cover the cost of your flights if this happens.
How you pay matters: Using a credit card is a good move because it comes with protection under the Consumer Credit Act. If you pay with cash, cheque, or a debit card, you might miss out on this safeguard.
ATOL Protection: If you’re booking a package deal or combining flights with car rental, ATOL protection is your buddy. It ensures that your money is safe if the airline or car rental company faces financial trouble before or during your trip.
Where to get it: You can buy SAFI as a standalone policy, or it might be included in your travel insurance. But not all travel insurance plans include it, so check your policy before you make a decision.
Important tip: Always, always read the terms and conditions of any insurance policy carefully before you buy it. If you’re not sure, it’s a good idea to talk to a professional insurance advisor for advice.
Remember, travel should be stress-free, and SAFI is there to make sure unexpected bumps in the road don’t ruin your adventure\
What is Scheduled Airline Failure Insurance?
If your airline goes bankrupt and cancels your flights, Scheduled Airline Failure Insurance (SAFI) covers you. It can help you get a refund for your unused tickets or pay for alternative flights to get you home or to your destination. Travel insurance doesn’t always include SAFI. Therefore, you may need to verify your insurance details or purchase it as an extra or separate coverage. ATOL protection only applies to package holidays, including flights and other services, but SAFI does not. SAFI may be handy if you book directly with the airline and don’t have ATOL insurance. These sources provide further information about SAFI and how it works.
How Much Does scheduled airline failure insurance Cost in the UK?
The cost of scheduled airline failure insurance (SAFI) in the UK may vary depending on the provider, the coverage level, and the trip duration. SAFI can be purchased as a separate policy for around £5 per person per trip or as an add-on to a travel insurance policy for around £3 per person per trip. However, these prices are only indicative and may not reflect the current market rates. Therefore, comparing different options and reading the policy terms and conditions carefully before buying SAFI is advisable.
If your airline goes bust, SAFI can protect you from losing money or being stranded abroad. However, it may not cover all the costs of your flight cancellation, such as accommodation, car hire, or other travel arrangements. For more comprehensive protection, you may desire to consider travel supplier failure insurance (ESFI), which can cover you for the failure of any travel service provider, such as hotels, airlines, car rental companies, etc. ESFI can be included in some travel insurance policies or bought separately
5 best-scheduled airline failure insurance costs in the UK with their premium cost?
Some of the best-scheduled airline failure insurance providers in the UK are:
Coverwise:
Coverwise offers SAFI as an optional extra on its single trip, annual multi-trip, and winter sports policies. The cost of adding SAFI depends on the destination, duration, and number of travelers. For example, for a single trip to Europe for one week for two adults, the cost of adding SAFI is £2.50 per person on a standard policy and £3.50 per person on a silver policy.
InsureandGo:
InsureandGo includes SAFI as standard on its gold and black policies and as an optional extra on its silver and bronze policies. The cost of adding SAFI varies depending on the policy type, destination, duration, and number of travelers. For example, for a single trip to Europe for one week for two adults, the cost of adding SAFI is £4.00 per person on a silver policy and £3.00 per person on a bronze policy.
Staysure:
Staysure includes SAFI as a standard on its comprehensive policies and an optional extra on its basic policies. The cost of adding SAFI depends on the destination, duration, and number of travelers. For example, for a single trip to Europe for one week for two adults, the cost of adding SAFI is £5.00 per person on a basic policy.
Travel Insurance 4 Medical:
Travel Insurance 4 Medical includes SAFI as standard on its premier plus and premier policies and as an optional extra on its standard and economy policies. The cost of adding SAFI varies depending on the policy type, destination, duration, and number of travelers. For example, for a single trip to Europe for one week for two adults, the cost of adding SAFI is £3.00 per person on a standard policy and £2.00 per person on an economy policy.
World First:
World First includes SAFI as a standard on its superior and premier policies and an optional extra on its standard and economy policies. The cost of adding SAFI depends on the policy type, destination, duration, and number of travelers. For example, for a single trip to Europe for one week for two adults, the cost of adding SAFI is £4.00 per person on a standard policy and £3.00 per person on an economy policy.
How does scheduled airline failure insurance differ from standard travel insurance?
Scheduled airline failure insurance (SAFI) is a type of travel insurance that differs from conventional travel insurance:
If your airline goes into administration and cancels all flights, SAFI protects you. Unless you have premium travel insurance, this scenario may not be covered.
If your airline goes bankrupt while you’re away, SAFI can help you buy new tickets, get a refund, or schedule new flights home. Medical expenses, lost or stolen baggage, and trip cancellation due to unforeseen circumstances are covered by standard travel insurance.
SAFI is rarely included in ordinary travel insurance policies, so check the fine print or add it as an additional. As a separate policy, you can buy it. Personal liability, legal expenses, and emergency help may be covered by standard travel insurance.
SAFI only applies to flights you book directly with the airline, not as part of a package with management. If you book a package holiday, you will be covered by ATOL protection, which offers similar benefits as SAFI. Depending on the policy, standard travel insurance may cover package and non-package holidays.
What situations would schedule airline failure insurance cover?
Scheduled airline failure insurance (SAFI) is a type of travel cover that can protect you if the airline you booked your flights with goes bankrupt. This can happen before or during your trip, and it can utilize you to lose money or be stranded abroad. SAFI can cover you for the following:
- The cost of buying new flight tickets, up to an agreed limit
- Reimbursing any unused tickets
- The cost to book replacement flights home if your airline collapses while you’re abroad
- Replacing your flight arrangements with a similar standard of transport
However, SAFI may not cover you for:
- Flights not booked in the UK before your departure
- If the threat of failure of your airline was known about when you took out the policy
- Any losses that you can claim back using another policy or type of cover
- Any consequential costs from your flights being cancelled, like losing money by not being able to reach a pre-booked hotel
Does ATOL cover Scheduled airline failure?
Yes, ATOL (Air Travel Organiser’s Licence) covers scheduled airline failure and other travel firm issues. If your travel firm or a service it sold you goes bankrupt, ATOL guarantees you a full refund for the impacted sections of your trip. If your airline goes bankrupt, you might get your money back or a new flight if you booked a package holiday with flights. ATOL does not cover flights booked without other travel services like accommodations or vehicle rentals. Scheduled airline failure insurance (SAFI) or supplier failure insurance may be necessary in that circumstance. These types of travel insurance can cover the cost of new tickets or bringing you home if your airline goes under. Before buying travel insurance, examine the policy terms to see if it covers these things. Depending on how you paid for your airfare, your credit card company or bank may reimburse you.
What is the difference between travel supplier failure and scheduled airline failure?
The difference between travel supplier failure and scheduled airline failure is that the former covers a broader range of travel providers, while the latter is specific to airlines.
End supplier failure insurance protects you against the financial loss of unused travel tickets, accommodation, or excursions if the provider goes bankrupt or ceases trading. This can include airlines, hotels, car hire companies, cruise lines, theme parks, and more. End supplier failure insurance can also cover the cost of alternative arrangements to continue your trip or return home.
Scheduled airline failure insurance is an end-supplier failure insurance that only covers airlines. It can reimburse you for the cost of the flight tickets if the airline goes bankrupt before you fly or the cost of replacement flights if the airline goes bankrupt while you’re away. Scheduled airline failure insurance is useful for travelers who book flights directly with an airline rather than as part of a package deal.
Conclusion
While SAFI may not be necessary for every flight, it provides peace of mind and financial protection in an airline failure. It’s important to consider the risks associated with the airline you’re booking with and weigh the cost of SAFI against the potential financial loss of a canceled flight. As with any insurance policy, it’s important to read the terms and conditions carefully to ensure you get the requested coverage.
