Flight warning for anyone booking a holiday on a debit card

London: Experts are sounding the alarm about booking holidays with debit cards. Did you know that 88% of travel insurance products no longer cover scheduled airline failures? That’s a big deal!

Debit cards just don’t offer the same safety net as credit cards. If you’re thinking about using a credit card, make sure to pay it off in full to dodge any interest charges.

Recent news about Spirit Airlines filing for bankruptcy is a wake-up call. It shows that even big airlines can struggle. In the UK, we’ve seen four airlines go under in the last seven years, including Monarch and Thomas Cook.

Anna-Marie Duthie, a travel insurance expert, points out that while airline failures are rare, they can have a huge impact when they do happen. Many travelers might not realize that most insurance policies don’t cover this risk anymore.

If an airline fails, you might be able to get your money back from the ticket provider or through your credit card under Section 75, but only if you paid with a credit card.

So, it’s smart to book flights or holidays with a credit card and pay it off quickly to avoid interest. That way, you’re better protected.

Here are some tips for extra protection when booking your holiday:

1. Use a credit card for bookings to benefit from Section 75 protection.
2. Get travel insurance right after booking to cover any mishaps.
3. Check that package holidays come with ATOL or ABTA protection.
4. If booking flights and accommodation together, ensure you get package protection.
5. For separate bookings, look for travel policies that cover disruptions.

Five years ago, over half of travel insurance products included scheduled airline failure coverage. But that number has dropped significantly, with only 12% offering it in 2024.

Anna-Marie explains that last year, a major provider stopped offering this coverage, leaving many insurers scrambling to fill the gap. So, it’s crucial to stay informed and choose your payment methods wisely!