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Trip cancelled? Your credit card can refund you

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Trip cancelled? Your credit card can refund you

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Bank of America content was last updated on May 3, 2021.

Everything from hurricanes to health problems can disrupt your travel plans.

Credit cards can provide some peace of mind by refunding your prepaid fees if your trip is canceled or interrupted. However, coverage has become harder to come by in recent months.

Citi, which has provided up to $5,000 in travel cancellation and interruption insurance, is eliminating the cover, as well as other benefits, including car rental insurance, travel accident insurance, and baggage delay protection for many of its credit cards. The change will apply to purchases made on or after September 22, 2019.

The company “constantly evaluates our products to ensure that the associated benefits best meet the needs of our customers,” and eliminates the coverages, “so that we can continue to provide key benefits that our customers use and value the most, at no additional cost.” cost,” Citi says.

However, American Express announced in late September that it would be add travel cancellation and interruption insurance up to six of its travel cards from January 1, 2020.

See related: Best Travel Insurance Credit Cards

Call your publisher before booking a trip

Citi’s promotion underscores the need to check your credit card before making a travel purchase to ensure you are covered for cancellation and interruption of the trip. If you do, you should check how much it covers and under what circumstances the coverage kicks in.

Usually, “if credit card companies actually offer cancellation or trip interruption insurance, it’s very limited and very limited,” says Erin Gavin, product analyst for the travel insurance site InsureMyTrip.com.

The company surveyed nearly 100 credit cards in 2017 to see what travel insurance they offered.

Meanwhile, a poll of more than 2,000 travelers by InsureMyTrip.com in 2017 found that 40 percent were unsure whether their primary credit card offered travel insurance benefits.

“It’s very difficult for consumers to stay informed when they use their credit card for travel insurance,” says Gavin.

That is why it is important that you credit card company and check your coverage before booking your next trip, she says.

Credit cards that offer cancellation or interruption insurance

Map Cover amount Insurance Coverage
Chase Sapphire Preferred Map Up to $10,000 per trip covered; $40,000 per year
  • Illness or injury of cardholder, travel companion or immediate family member
  • Severe weather prevents the start or continuation of the journey
  • Terrorist attack or hijacking
  • Jury Duty or Court Summons
  • Travel Company Financial Insolvency
Chase Sapphire Reserve Up to $10,000 per trip covered; $40,000 per year
  • Illness or injury of cardholder, travel companion or immediate family member
  • Severe weather prevents the start or continuation of the journey
  • Terrorist attack or hijacking
  • Jury Duty or Court Summons
  • Travel Company Financial Insolvency
Chase Freedom Up to $1,500 per passenger; $6,000 per trip
  • Illness or injury of cardholder, travel companion or immediate family member
  • Severe weather prevents the start or continuation of the journey
  • Organized strike affecting public transport
  • Terrorist action or hijacking
  • Change in military orders of the insured or their spouse or domestic partner
United Explorer Map Up to $1,500 per trip, $6,000 per year
  • Illness or injury of cardholder, travel companion or immediate family member
  • Severe weather prevents the start or continuation of the journey
  • Organized strike affecting public transport
  • Terrorist action or hijacking
  • Change in military orders of the insured or their spouse or domestic partner
Bank of America® Customized Cash Rewards Credit Card Up to $1,500 per trip
  • Illness or injury
  • Severe weather prevents the start or continuation of the journey
  • Terrorist attack or hijacking
  • Jury Duty or Court Summons
  • Travel Company Financial Insolvency
  • Change in Military Orders for Traveler or Spouse
  • Quarantine imposed by doctor
Bank of America® Premium Rewards® Credit Card Up to $5,000 per trip, $10,000 per year
  • Illness or injury
  • Severe weather prevents the start or continuation of the journey
  • Terrorist attack or hijacking
  • Jury Duty or Court Summons
  • Travel Company Financial Insolvency
  • Change in Military Orders for Traveler or Spouse
  • Quarantine imposed by doctor
US Bank Altitude Reserve Visa Infinite Card Up to $2,000 per trip
  • Illness or injury
  • Death of an immediate family member
  • Carrier declares bankruptcy

How travel cancellation and interruption insurance works

Travel cancellation insurance covers you if due to certain circumstances you are unable to travel on or before your planned departure date and you have to cancel your flight, hotel or other travel arrangements that you have already paid for.

Trip interruption insurance comes into effect if certain covered circumstances arise while you are traveling and your trip is interrupted.

“Most credit cards only cover travel payments purchased with that particular card,” said Steven Benna, content director at the travel insurance site Squaremouth.com.

So if you charge your flight on a credit card that offers cancellation or interruption insurance, and your hotel on a card that doesn’t have such coverage, you can get your flight reimbursed, but not your hotel.

You are likely to be eligible for coverage if you or your travel companion is injured or ill, unable to travel due to inclement weather, or if a terrorist incident occurs.

The amount of coverage can vary widely, from $1,500 to $10,000 per incident, depending on the credit card. So coverage that may be sufficient if you are flying to visit your grandmother in California may not be sufficient if you are on an expensive trip, such as an African safari.

Your credit card may also have an annual limit on trip interruption and cancellation insurance.

See related: Making a Baggage Claim Using Your Credit Card

Another option: take out travel insurance yourselfverzekering

Some major credit cards, including American Express and Discover, do not offer trip interruption or cancellation insurance.

If your credit card does not offer such coverage, or if you require high limits or a wider range of coverage, you can also purchase travel insurance yourself.

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