This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.
Canceling nonrefundable travel is getting kicked while you’re down.
Image source: Getty Images
As schools take their spring breaks, everyone from college kids to families are planning trips to escape the last bits of winter and enjoy the new season. Unfortunately, for too many of these would-be travelers, life is going to get in the way.
And if they booked nonrefundable travel, they could be out hundreds. Unless, of course, they used the right credit card.
Save: This credit card has one of the longest intro 0% interest periods around
More: Save while you pay off debt with one of these top-rated balance transfer credit cards
Many popular travel rewards credit cards have high annual fees. But those fees are often considered worth paying for the perks. When it comes to canceled travel plans, the perk with the most to offer: travel insurance.
Lost bags, canceled trips, and more
The travel insurance that comes with your travel rewards card will vary a lot depending on the specific card you own. In general, the high-end cards — those with $500-plus annual fees — will have the most extensive coverage. That said, a few mid-tier cards also have impressive insurance perks.
Some of the most common things covered by credit card travel insurance include:
Trip cancellation or interruption coverage: This insurance can reimburse you for nonrefundable travel if your trip is canceled (before you leave) or interrupted (while traveling) for a covered reason.Trip delay coverage: If your trip is delayed for a covered reason (usually because of a common carrier delay), then you may be reimbursed for things like hotel stays and food.Lost luggage reimbursement: If the airline (or other common carrier) loses your luggage, you could be reimbursed for the cost of the contents.Delayed baggage insurance: Sometimes your luggage isn’t all the way lost — just not where you are. Necessities, like clothing and toiletries, you purchase could be reimbursed.Emergency evacuation and transportation: Vacations off the beaten path can be relaxing. But most quality healthcare is somewhere on the path. If you need emergency transportation, this perk could potentially reimburse the cost.
Every type of travel insurance will have caps on how much you can get and how often you can make a claim. Read your card’s benefits guide to find out the details on what you can expect.
You must use the card to pay for your trip
Perhaps the most important thing to understand about credit card travel insurance is that it usually only kicks in when you pay for your travel with that card. Simply being a cardholder isn’t enough.
For example, say you need to cancel a nonrefundable flight due to a medical emergency. If you paid for your flight entirely with your card, you’re covered. If you used multiple cards or another card entirely, you’re likely out of luck.
The only exception to this rule is when you use rewards. But not just any rewards. They generally need to be rewards from the same issuer.
For example, say you have an American Express card with travel insurance. To enjoy coverage, you would need to pay for your travel with your Amex card and/or with Amex Membership Rewards points.
Most card policies also have time limits for how long you have after the cancellation to file a claim. This can be as little as a few weeks, so file your claim as soon as possible.
Accidents, weather often covered
There’s minor variability in what counts as a covered event between issuers. But most policies will have similar allowances:
Accidental bodily injury, sickness, or death of the covered traveler or their traveling companions (or their families)Inclement weather (we’re not talking a little rain; as Amex puts it, the weather needs to be severe enough that it “prevents a reasonable and prudent person from traveling”)Change in military orders for the covered traveler or their spouseTerrorist action or hijackingJury duty or subpoena that cannot be postponed or waived
The list of covered situations provided by issuers can be vague — often on purpose. So if you have an event that isn’t specifically on the no-go list (more on that below), it may be worth trying to file a claim even if your reason isn’t directly listed.
Schedule conflicts, finances NOT covered
While many of the most common reasons we cancel travel are considered to be covered events, just as many are not covered. This list is long, and it can include:
You changed your mind / changed your plansYour financial situation has changedYou need to cancel due to a pre-existing medical conditionYou are traveling against the advice of a physicianYou are traveling into a warzone (declared or not)
Another common exception is when part of your travel has been canceled by a common carrier. As Chase puts it, cardholders aren’t covered for “travel arrangements canceled or changed by a common carrier, tour operator, or any travel agency unless the cancellation is the result of severe weather or an organized strike affecting public transportation.”
It’s also good to note that you typically won’t be reimbursed by your card’s travel insurance if you were already reimbursed from another source. If you purchased a separate travel insurance policy, for instance, your card’s policy may require you to file your claim with the third-party service first.
Top credit card wipes out interest until 2024
If you have credit card debt, transferring it to this top balance transfer card secures you a 0% intro APR for up to 21 months! Plus, you’ll pay no annual fee. Those are just a few reasons why our experts rate this card as a top pick to help get control of your debt. Read our full review for free and apply in just 2 minutes.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.American Express is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Brittney Myers has positions in American Express. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.
