Need to know
- Only 15 out of 61 travel insurance policies in our comparison cover insolvency of an airline
- No travel insurance policies we review cover insolvency of a travel agent
- If your travel insurance won't cover you, you'll need to process a credit card chargeback
The COVID-19 travel bans highlighted how fragile the travel industry can be. If you've paid money to a travel agent, airline or other travel provider that becomes insolvent, are you able to get your money back?
Does travel insurance cover airline insolvency?
Most travel insurers exclude cover if your airline or travel providers, such as hotels and cruise lines, become insolvent. In our travel insurance comparison, only 15 out of 61 policies cover insolvency of a travel provider. The cover is usually limited to between $1500 and $10,000.
Does travel insurance cover travel agent insolvency?
None of the insurers that we review cover insolvency of a travel agent and we're not currently aware of any insurers that do. If you're aware of a travel insurer that covers insolvency of a travel agent, visit our CHOICE Community and let us know.
Otherwise, see our advice below.
Does travel insurance cover airline insolvency?
Most travel insurers exclude cover if your airline or travel providers, such as hotels and cruise lines, become insolvent.
In our travel insurance comparison, only 22 out of 132 policies cover insolvency of a travel provider. The cover is usually limited to between $1,000 and $10,000.
Insurers that cover travel provider insolvency
Travel providers are companies like airlines, cruise lines, accommodation and tour providers. Travel agents include online booking sites.
Claims are assessed on a case-by-case basis, so check with your travel insurer for up-to-date advice
| Brand (underwriter) | Cover for travel provider insolvency | Cover for travel agent insolvency |
| AHM - Comprehensive (Zurich) | No | No |
| AHM - Comprehensive Multi-Trip (Zurich) | No | No |
| AHM - Medical Only (Zurich) | No | No |
| Allianz - Basic (Allianz) | No | No |
| Allianz - Comprehensive (Allianz) | No | No |
| Allianz - Multi-Trip (Allianz) | No | No |
| Bupa - Comprehensive (Allianz) | No | No |
| Bupa - Essentials (Allianz) | No | No |
| Bupa - Multi-Trip (Allianz) | No | No |
| Cover-More Travel Insurance - Basic (Zurich) | No | No |
| Cover-More Travel Insurance - Comprehensive (Zurich) | Yes | No |
| Cover-More Travel Insurance - Comprehensive Multi-Trip (Zurich) | Yes | No |
| Cover-More Travel Insurance - Comprehensive Plus (Zurich) | Yes | No |
| Cover-More Travel Insurance - Comprehensive Plus Multi-Trip (Zurich) | Yes | No |
| FastCover - Basics (Lloyds) | No | No |
| FastCover - Comprehensive (Lloyds) | No | No |
| FastCover - Frequent Traveller Saver (Lloyds) | No | No |
| FastCover - Standard Saver (Lloyds) | No | No |
| Flight Centre - Multi-Trip YourCover Essentials (Zurich) | No | No |
| Flight Centre - Multi-Trip YourCover Plus (Zurich) | No | No |
| Flight Centre - YourCover Essentials (Zurich) | No | No |
| Flight Centre - YourCover Plus (Zurich) | No | No |
| Go Insurance - Go Basic (Lloyds) | No | No |
| Go Insurance - Go Basic Annual Multi-Trip (Lloyds) | No | No |
| Go Insurance - Go Plus (Lloyds) | Yes | No |
| Go Insurance - Go Plus Annual Multi-Trip (Lloyds) | Yes | No |
| InsureandGo - Bare Essentials (Mitsui Sumitomo) | No | No |
| InsureandGo - Gold (Mitsui Sumitomo) | No | No |
| InsureandGo - Silver (Mitsui Sumitomo) | No | No |
| Medibank Travel Insurance - Comprehensive (Zurich) | No | No |
| Medibank Travel Insurance - Medical Only (Zurich) | No | No |
| Medibank Travel Insurance - Multi-Trip Comprehensive (Zurich) | No | No |
| NRMA - Comprehensive (Zurich) | No | No |
| NRMA - Comprehensive Multi-Trip (Zurich) | No | No |
| NRMA - Essentials (Zurich) | No | No |
| NRMA (NT, SA, WA) - Essentials (IAG) | No | No |
| NRMA (NT, SA, WA) - Platinum (IAG) | Yes | No |
| NRMA (NT, SA, WA) - Platinum Multi-Trip (IAG) | Yes | No |
| NRMA (NT, SA, WA) - Premium (IAG) | No | No |
| Simply Travel Insurance - Comprehensive (Allianz) | No | No |
| Simply Travel Insurance - Essentials (Allianz) | No | No |
| Simply Travel Insurance - Multi-Trip (Allianz) | No | No |
| Tick Travel Insurance - Basic (Mitsui Sumitomo) | No | No |
| Tick Travel Insurance - Budget (Mitsui Sumitomo) | No | No |
| Tick Travel Insurance - Standard (Mitsui Sumitomo) | No | No |
| Tick Travel Insurance - Top (Mitsui Sumitomo) | No | No |
| Virgin Australia - Travel Safe International (Zurich) | No | No |
| Virgin Australia - Travel Safe International Multi-Trip (Zurich) | No | No |
| Virgin Australia - Travel Safe Plus International (Zurich) | Yes | No |
| Virgin Australia - Travel Safe Plus International Multi-Trip (Zurich) | Yes | No |
| Webjet - Travel Safe International (Zurich) | No | No |
| Webjet - Travel Safe International Multi-Trip (Zurich) | No | No |
| Webjet - Travel Safe Plus International (Zurich) | Yes | No |
| Webjet - Travel Safe Plus International Multi-Trip (Zurich) | Yes | No |
| World2Cover - Annual Multi-Trip (Tokio Marine) | Yes | No |
| World2Cover - Basics (Tokio Marine) | No | No |
| World2Cover - Essentials (Tokio Marine) | Yes | No |
| World2Cover - Top (Tokio Marine) | Yes | No |
| Worldcare - Comprehensive (Allianz) | No | No |
| Worldcare - Essential (Allianz) | No | No |
| Worldcare - Frequent (Allianz) | No | No |
How to get your money back if your airline or travel agent goes broke
Travel agent insolvency protection
Some travel agents, such as TravelManagers travel agents, may have their own form of insolvency protection. Check with the travel agent or the travel agent's administrator if you have access to this form of protection. Read our advice on travel agent refunds for more detail.
Visa/Mastercard
If you don't have travel insurance, or your policy doesn't cover insolvency, then you may need to process a credit card chargeback. If you paid by credit card or Visa or Mastercard debit card, then you may be eligible for a chargeback.
You'll need to check the conditions with your card provider, but there's usually a time limit for processing a chargeback, depending on how long ago you paid for the service. See our advice on credit card chargebacks for more information.
PayPal
If you paid using PayPal, you may also be able to get your money back with PayPal buyer protection.
If none of these options work for you, then you'll need to register with the company's external administrator, where you'll likely join the queue of unsecured creditors along with other consumers.
Stock images: Getty, unless otherwise stated.
