COVID-19 seems to have taught us a new fear – disrupting your travel plans. Whether it’s illness, harsh weather, or family circumstances, a host of unforeseen circumstances can ruin your vacation. That’s why travel credit cards that provide cancellation and trip interruption coverage are so popular these days to provide a sense of security when booking your next trip.
What does this particular travel insurance entail? Trip Cancellation Insurance covers you if certain circumstances prevent you from traveling on or before your scheduled departure date and you have to cancel your flight, hotel or other trips for which you have already paid. Trip interruption insurance takes effect if certain covered circumstances occur during your trip and your trip is interrupted.
Therefore, before you make a trip, it is important to check if your credit card is covered by trip cancellations or interruptions. If so, be sure to find out how much it covers and under what circumstances the coverage comes into effect. Several credit cards provide cancellation and travel interruption insurance these days, but that can cost you a hefty annual fee. These are some of our favorite options.
Platinum Card: Best Luxury Card
For most consumers, an annual fee of $695 per Platinum Card® by American Express difficult to swallow but a good option for those who travel many times a year. The Platinum Card brings good rewards, but it shines with multiple credits for travel, entertainment, food delivery, and more. It also gives you wide access to the airport lounge and various types of travel insurance, including trip cancellation and interruption insurance.
What does it cover:
- Accidental injury or illness of a cardholder, travel companion or family member
- Severe or harsh weather that prevents you from traveling or continuing your journey
- Changing the military orders of the cardholder or his spouse
- Terrorist action is happening near you
- Jury duty or a subpoena that you cannot delay or refuse
- The dwelling becomes uninhabitable (fire, flood, etc.)
- Quarantine introduced for health reasons
that it does not cover:
- Pre-existing conditions
- The cardholder committed suicide, attempted suicide, or injured himself
- War (declared or undeclared)
- Mental or emotional disorders unless you are hospitalized
- The cardholder is in a state of alcoholic, narcotic or other controlled intoxication at the time of the insured accident.
- The cardholder commits, attempts to commit, or is incarcerated
- The owner of the card participates in skydiving, car racing or speed competitions
- Non-emergency treatment or medical procedure
Maximum coverage amount:
- Up to $10,000 per trip and $20,000 per card every 12 months
- Up to $10,000 per trip and $20,000 per card every 12 months
Read more on the official website of American Express.
Chase Sapphire Preferred Card: Best Mid-Range Travel Card
Chase Sapphire Preferred® CardReputation precedes itself and in vain. For just $95, it offers great rewards, a generous sign-up bonus, and plenty of travel insurance, including trip cancellation and interruption insurance. Considering the lower annual fee, the maximum insurance coverage—up to $40,000 every 12 months—is impressive.
Chase also recently added some useful annual bonuses, such as a $50 Ultimate Rewards hotel credit and 10% Anniversary Bonus Points.
What does it cover:
- Accidental injury, illness or death of a cardholder, travel companion or immediate family member
- Severe or harsh weather that prevents you from traveling or continuing your journey
- Changing the military orders of the cardholder or his spouse
- Terrorist action is happening near you
- Jury duty or a subpoena that you cannot delay or refuse
- The dwelling becomes uninhabitable (fire, flood, etc.) or is burglarized
- Quarantine introduced for health reasons
- Destination housing becomes uninhabitable
- Death or hospitalization at destination
that it does not cover:
- Change of plans, financial circumstances, etc. cardholder, travel companion or next of kin
- Pre-existing conditions
- The cardholder committed suicide, attempted suicide, or injured himself
- War (declared or undeclared) or civil unrest
- The cardholder commits, attempts to commit, or is incarcerated
- Loss for trip booked while waiting in line for treatment
- The cardholder is in a state of alcoholic, narcotic or other controlled intoxication at the time of the insured accident.
- Failure to obtain required visas, passports or other travel documents
- Personal desire not to travel or a foreign country closes its borders due to an epidemic or pandemic
Maximum coverage amount:
- Up to $20,000 per trip and $40,000 every 12 months
- Up to $20,000 per trip and $40,000 every 12 months
See the Chase Sapphire Preferred Benefits Guide for full coverage details.
World of Hyatt Credit Card: Best Hotel Card
The World of Hyatt program may not be as widely known as the Marriott Bonvoy program, but it is worth participating. hotel chain.
For only $95, Hyatt credit card world gives you big rewards in everyday categories like restaurants, local transportation, gym and health club memberships, and shopping at Hyatt hotels.
Its signup bonus is generous too – 30,000 points if you spend $3,000 over three months, followed by up to 30,000 bonus points (at a rate of 2X points on regular purchases) worth up to $15,000 over six months. All this plus an annual bonus in the form of a free night (in a category 1-4 hotel) and insurance against cancellation and disruption of the trip to boot? It’s a hard card to say no.
What does it cover:
- Disease
- Severe weather
- Other Covered Situations
that it does not cover:
Maximum coverage amount:
- Up to $5,000 per person and $10,000 per ride
Unfortunately, the World of Hyatt credit card does not state what its insurance covers. However, since the card is also issued by Chase, it likely covers situations similar to those used by Chase Sapphire’s preferred card. After you get your card approved, Chase will send you a full benefit guide that lists all covered and uncovered losses.
Bank of America Premium Rewards Credit Card: Best for Simplicity
As far as rewards go, there’s not much here. Bank of America® Premium Rewards® Credit Card compared to other cards on this list. It gives you 2x points on travel and restaurant purchases, and 1.5x points on all other purchases. If you spend $3,000 within 90 days, the card will reward you with 50,000 Reward Points, and you’ll receive up to $100 in air travel incidental statement every year.
However, the map is solid if you don’t want to think about maximizing categories and such. Luckily, the Bank of America Premium Rewards card is simple.
What does it cover:
- Disease
- Other Covered Situations
that it does not cover:
Maximum coverage amount:
- Up to $2,500 for non-refundable fares
Bank of America is relatively reticent about the coverage situations covered by its travel insurance. However, it is likely that their insurance will cover many of the most common losses such as accidental bodily injury, severe or inclement weather, and more. Once your card is approved, the issuer will send you a Benefits Guide along with your physical card to explain the details.
Ink Business Preferred Credit Card: Best for Business Owners
We know that you as a business owner also need travel cancellation or interruption insurance. you considered Ink Business Preferred® Credit Card? First, its signup bonus is pretty good – 100,000 points if you spend $15,000 in three months. In terms of the rewards structure, it offers 3X points for travel, shipping, internet, cable TV, phone services and ad purchases (up to $150,000 per year) and 1X points for general purchases.
On top of that, it gives you many other perks such as extended warranty, mobile phone protection, luggage insurance and more, as well as trip cancellation and interruption insurance. And all this for $95 a year? This is a small but powerful business card. Perhaps that is why it is consistently ranked as one of the best business cards.
What does it cover:
- Accidental injury, illness or death of a cardholder, travel companion or immediate family member
- Severe or harsh weather that prevents you from traveling or continuing your journey
- Changing the military orders of the cardholder or his spouse
- Terrorist action is happening near you
- Jury duty or a subpoena that you cannot delay or refuse
- The dwelling becomes uninhabitable (fire, flood, etc.) or is burglarized
- Quarantine introduced for health reasons
- Travel agency, tour operator or tour operator goes bankrupt
that it does not cover:
- Change of plans, financial circumstances, etc. cardholder, travel companion or next of kin
- Pre-existing conditions
- The cardholder committed suicide, attempted suicide, or injured himself
- War (declared or undeclared) or civil unrest affects you
- The cardholder commits, attempts to commit, or is incarcerated
- The cardholder participates in a car race or speed competition
- Loss for trip booked while waiting in line for treatment
- Covers up to $5,000 per trip
- Covers up to $5,000 per trip
To read the full details of covered situations, please see the Chase Benefits Guide.
bottom line
First of all, read the fine print before using your card’s travel insurance. In addition to uncovered damages, insurance will often not cover trips that exceed a certain number of days and require you to file a claim within a certain period of time to be eligible for a refund.
For most issuers, you must use your eligible card, which provides cancellation and trip interruption insurance, to pay for any travel expenses you would like to cover. If, for example, you pay for your hotel stay with a suitable card and your flight tickets with another card, only your hotel expenses can be reimbursed in the event of an emergency.
However, the availability of insurance against cancellation and disruption of the trip is only at hand. If you are willing to pay an annual fee for one of these cards, this is a good advantage for you. So you can book and travel without worry.
Editorial disclaimer
The editorial content on this page is based solely on the objective judgment of our contributors and is not based on advertising. It was not provided or ordered by credit card issuers. However, we may receive compensation when you click on links to our partners’ products.