When things go wrong on a trip—whether it’s a delay, cancellation, or other unexpected event—having the right credit card can make a world of difference. Many travel credit cards offer complimentary protections, saving you the expense of separate travel insurance. As long as you use your card to pay for prepaid, nonrefundable travel expenses, you may already have coverage for some of the most common travel disruptions. Let’s break down the benefits, using the Chase Sapphire Preferred® Card as an example.
Why Choose a Travel Credit Card with Built-In Protections?
Many travelers overlook the value of having a credit card with travel protections. Not only can these cards earn you rewards, but they also come with significant coverage that protects you from unexpected expenses on your journey. With a relatively low annual fee, the Chase Sapphire Preferred is one of the most popular options. For a $95 annual fee, this card offers essential travel benefits that can prevent headaches and additional costs.
Benefits at a Glance:
- Trip cancellation and interruption insurance: Protection for nonrefundable expenses if a trip is canceled or cut short due to specific covered situations.
- Trip delay reimbursement: Compensation for essential expenses incurred when travel is delayed beyond 12 hours.
While these protections vary by card, the Chase Sapphire Preferred’s benefits offer substantial coverage and are especially valuable when booking prepaid travel.
Trip Cancellation and Interruption Insurance: What It Covers
One of the primary benefits of the Chase Sapphire Preferred is trip cancellation and interruption insurance. This protection covers you if your trip is canceled or interrupted due to specific reasons, such as illness, severe weather, or other covered situations.
Coverage Amount
- Up to $10,000 per person and $20,000 per trip for nonrefundable travel expenses.
- Eligible expenses include airfare, hotels, and tours that cannot be refunded by the provider.
Filing a Claim
If you encounter an eligible issue and your airline or hotel won’t refund you, this is when you can file a claim. However, keep in mind that the policy only covers prepaid expenses. You won’t receive reimbursement for any new travel arrangements made after a trip is canceled or interrupted. It’s essential to check the fine print to understand exactly what qualifies as a “covered situation” for your card’s benefits.
Trip Delay Reimbursement: What Happens When Your Travel is Delayed
Another valuable feature of the Chase Sapphire Preferred is trip delay reimbursement. This coverage comes into play if your travel is delayed for 12 hours or more or if you are required to book an overnight stay due to the delay. Here’s a closer look at what this insurance covers.
Coverage Details
- Reimbursement of up to $500 per ticket for unreimbursed expenses.
- Eligible expenses include meals, lodging, toiletries, and essential personal items, as long as they are deemed reasonable and necessary.
Real-Life Example
Let’s say your flight gets delayed overnight, and you end up needing a hotel room and meals until the next flight. With the Sapphire Preferred’s trip delay reimbursement, you can get reimbursed for these out-of-pocket costs. However, it’s important to remember that this benefit doesn’t cover rebooking new flights on different carriers. So, if your initial flight is canceled and you book a new flight at a higher cost, the extra airfare won’t be covered.
Situations Not Covered: Limitations of Travel Credit Card Protections
While credit card travel protections are helpful, they do come with certain limitations. Understanding what isn’t covered can help you prepare for your trip better and decide whether additional travel insurance is necessary.
New Flight Reservations
If you need to book a new flight due to a cancellation, the credit card’s travel protections won’t cover the cost of the new ticket. For example, if your $200 United flight is canceled and you book a $400 flight on Delta, the $400 Delta ticket isn’t reimbursable. You may still be covered for associated expenses, like meals or hotels, but not the airfare.
High-Value or Comprehensive Coverage
The card’s travel protections are generally sufficient for most common disruptions, but they won’t provide “cancel for any reason” coverage or other high-end travel insurance benefits. If you need more comprehensive protection for a high-cost or complex trip, purchasing travel insurance with more coverage may be a wise choice.
How to File a Claim for Travel Protections
If you experience a disruption that qualifies for travel protection, it’s essential to know how to file a claim to avoid any delays in reimbursement. Follow these steps to ensure a smooth process.
- Contact the Provider First: Always contact the airline, hotel, or tour operator to see if they can accommodate you with a refund or change first.
- Gather Documentation: Keep all receipts, boarding passes, and any communication with the provider about the disruption.
- File the Claim Promptly: Use your credit card’s claim system, like Chase’s eClaimsLine for the Sapphire Preferred, to submit your claim with all relevant documentation.
By following these steps, you’ll maximize your chances of a successful reimbursement and ensure you’re prepared in case of future travel disruptions.
Additional Travel Card Protections: Why They’re Worth Considering
Aside from the Chase Sapphire Preferred, many travel rewards cards come with other valuable protections. Here’s a quick look at some common travel benefits that could be included with different cards.
Rental Car Insurance
Some cards, like the Chase Sapphire Reserve, provide primary rental car insurance. This benefit covers damage to your rental car in the event of an accident or theft, allowing you to avoid filing a claim with your personal auto insurance provider.
Lost Luggage Reimbursement
Cards with this benefit offer reimbursement for lost or damaged baggage. This can be particularly useful for travelers who check bags, as airline compensation for lost luggage can be limited.
Emergency Medical Assistance
Certain premium travel cards provide emergency medical coverage when traveling internationally. This coverage typically reimburses medical expenses or emergency evacuation in case of illness or injury abroad.
These protections can be a huge asset for frequent travelers, especially if you rely on your credit card benefits for coverage rather than purchasing separate travel insurance.
Maximizing Your Credit Card’s Travel Protections
Credit card travel protections can be a valuable safety net for many travelers, offering peace of mind for delays, cancellations, and other common disruptions. With benefits like trip cancellation and interruption insurance and trip delay reimbursement, cards like the Chase Sapphire Preferred can save you from additional expenses, as long as you understand their limitations.
If you frequently travel, consider using a card that offers robust travel protections, especially if you book nonrefundable flights, hotels, or tours. While these protections might cover most travel issues, purchasing standalone travel insurance could be beneficial for those looking for comprehensive “cancel for any reason” options or high-value trip coverage. Either way, knowing the ins and outs of your card’s benefits ensures you’re prepared to handle unexpected travel challenges without added stress.
