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No one wants to think about travel mishaps when planning a vacation, but it happens more than you think. According to a recent Bankrate survey, 77% of Americans who have traveled this year said they run into a travel-related problem.
These disruptions aren’t just annoying — they’re often expensive. Like when a flight delay forces you to pay for extra meals (or even a hotel stay) while you wait for a new flight. Or when you have to buy a whole wardrobe after an airline loses your luggage.
The good news? Your credit card may have you covered.
Many credit cards offer travel insurance benefits that cover you if something unexpected happens. Here’s a closer look at how these credit card protections work and the best ways to leverage these benefits effectively.
Types of travel insurance offered by credit cards
Flight delays, canceled flights, and other travel disruptions can put a damper on any trip. Travel insurance can ease the financial strain by reimbursing you for certain unplanned expenses.
Many credit cards offer built-in travel insurance coverage for free. Here’s a look at the most common travel insurance protections many cards offer:
Trip cancellation insurance
If your trip is canceled unexpectedly, trip cancellation insurance may cover your expenses. This comes in handy if your travel plans change or you need to cut your trip short.
For example, if your flight is rescheduled due to severe weather, your card could reimburse you for lodging and meals. The same goes if your flight is canceled or rescheduled due to injury, illness, or terrorism.
Your card’s travel insurance typically won’t cover cancellations caused by civil unrest, natural disasters, or travel warnings. That’s why it’s important to check your card’s terms for specific details about your coverage.
Your card will generally cover you, and any other travel companions booked using your card. Some cards may cover your immediate family members, even if you aren’t traveling with them.
Coverage amounts vary by card. Some of the best credit cards with travel insurance will cover up to $20,000 per trip, and offer added perks like covering non-refundable trips.
Trip delay insurance
More than 20% of flights were delayed in 2022. If an airline delays your flight by a specific amount of time, your card may cover your out-of-pocket expenses like meals, hotels, toiletries, and other essentials. Covered incidents include delays due to mechanical issues or weather.
Some credit cards don’t offer trip delay protection and those that do have varying coverage. Make sure you look into the fine print to see what your card covers before you book your trip. If your card doesn’t offer trip delay insurance, contact the airline to see what protections it offers.
Baggage insurance
Finding yourself at your destination with nothing but the clothes on your back is not a scenario that most travelers want to experience.
While losing your baggage completely is rare, it still happens. Roughly seven out of every 1,000 bags handled are listed as lost luggage, according to data from the aviation data company SITA’s report.
Cards with baggage delay insurance may reimburse you for eligible expenses while you’re waiting to reunite with your luggage. Covered expenses often include essentials like clothes and toiletries.
To qualify, your luggage must be delayed for a specific amount of time, typically around six hours. Once you’ve confirmed your luggage is lost, file a report with the airline as soon as possible. Spending limits and restrictions vary from card to card.
Airlines must compensate you if your bags are damaged, delayed, or lost. Maximum limits depend on if the flight is domestic or international.
Do I need to buy travel insurance if I have a credit card?
Whether you need a separate travel insurance policy depends on your card’s benefits. Most cards offer adequate coverage, but benefits can vary between cards.
Standalone travel insurance coverage is often more robust than credit card travel insurance. Coverage limits are often higher with these policies, and many come with the option to cancel your trip for any reason and get reimbursed.
Consider factors like your destination, the length of your trip, and what coverage your card already offers. If you’re going on an expensive vacation and want more extensive coverage, purchasing a separate travel insurance policy could be a good idea.
How to file a travel insurance claim with a credit card
To use your credit card travel insurance:
- Check your benefits. Review your credit card’s benefits guide or contact customer service to confirm the specific coverage your card offers. Make sure you understand your card issuer’s claims process before moving forward.
- Gather documentation. Collect your travel itinerary, receipts, weather advisories, police reports, and any other documents related to your claim. You may need to submit supporting documentation like receipts, hotel confirmations, and airline notifications.
- File a claim. Your card may have an online form you can fill out with your claim details. Submit your claims as soon as possible to avoid delays or complications. For example, trip cancellation and interruption insurance claims must be made within 60 days to qualify for reimbursement.
- Track your spending. Most cards’ coverage comes with spending limits, and you’ll likely be asked to provide receipts for all expenses you wish to claim.
Maximizing your card’s travel benefits
If you’re a frequent traveler, having a rewards credit card comes with many benefits, from points that can offset your expenses to upgraded accommodations and complimentary airport lounge access.
Researching the best travel credit cards and matching their benefits to your needs could pay off — literally. When choosing a travel card, consider the following features:
- Rewards value: Before you apply for a new card, consider the sign-up bonuses, average rewards rates, and redemption values. It’s also smart to align the card’s rewards with your spending habits. If you primarily use your card for dining out, look for cards that offer generous rewards in that spending category.
- Rates and fees: Ideally, look for a card with a 0% introductory APR and a low ongoing rate. Some cards don’t charge an annual fee, while others charge up to $500 yearly. Cards with annual fees often provide perks that justify the yearly cost, but check to ensure you’ll use those benefits.
- Redemption flexibility: Some credit cards make it easier to redeem rewards and give you multiple options for doing so. For example, you may be able to transfer points to airline or hotel partners or redeem points for different types of purchases.
- Valuable perks: Look for travel cards with added benefits that align with your needs, such as travel insurance protection, airport lounge access, and expedited security screening programs.
The bottom line
Flight delays and cancellations are an unfortunate reality of traveling, but your credit card’s travel insurance benefits can provide financial relief when these disruptions occur.
If you’re unfamiliar with your credit card’s travel protections, consider reviewing your card’s benefits guide before your next trip. If you’re a traveler, sign up for a card with robust travel protections that could save you hundreds (or even thousands) of dollars the next time you’re stuck at an airport.
Opinions expressed are author’s alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.