Kiplinger’s Personal Finance: Credit cards offer travel insurance | Business News


Your card may provide some coverage if your trip is canceled or disrupted.

Just when many people thought the pandemic was over, the COVID-19 delta variant has threatened fall and winter travel plans. But if you booked a trip with a credit card that offers travel insurance, you may be able to recoup some of your costs.

For example, your card may provide some coverage if your trip is canceled or disrupted, and it may cover the cost of delayed or lost luggage.

In general, premium rewards cards — which typically charge an annual fee — provide better coverage.

Protections usually kick in when events that affect your trip are out of your control, said Nick Ewen, travel rewards expert at The Points Guy, a consumer travel website.

For example, suppose a flight delay caused you to miss a night in a hotel room that you reserved with an advance, nonrefundable payment. If you paid for the room with a credit card that includes travel insurance, the card would more than likely cover your loss. But if you decided you no longer wanted to go on the trip — perhaps because of concerns about COVID-19 — your card’s travel insurance probably wouldn’t cover your losses.

All cards are not created equal.

The Chase Sapphire Reserve card (annual fee $550) offers cancellation/interruption coverage of up to $10,000 per person, for example, while the American Express Platinum card (annual fee $695 for new cardholders) provides up to $10,000 per trip.