If you have holiday travel plans this year, a credit card that comes with trip cancellation insurance can help give you peace of mind.
Trip cancellation insurance is a form of travel insurance that refunds deposits for certain reservations such as plane tickets and hotels if you cancel your plans due to a qualifying reason.
For instance, if you can’t travel due to an illness or inclement weather, your credit card’s trip cancellation plan might reimburse some of your expenses.
Having the right card can make all the difference, especially during the COVID-19 pandemic. Below are Credit Karma’s top choices for credit cards with trip cancellation insurance.
Let’s take a look at our picks for the best credit cards with trip cancellation insurance.
Platinum Card From American Express
With the Platinum Card from American Express, you can take advantage of elite airport lounges and perks from luxury hotels. Of course, you have to pay a premium price to enjoy these benefits — this card has an annual fee of $550.
If you’re preparing to take your dream vacation, the annual fee a small price to pay for knowing you’ll be covered up to $10,000 each trip, or $20,000 annually.
If you or any of your travel companions become ill, are injured, or must self-isolate, this card will reimburse eligible travel costs, including non-refundable expenses paid prior to the trip. American Express also covers inclement weather, terrorist events, military orders, jury duty, or subpoenas.
Qualifying travel expenses include airlines, hotels, cruises, and more. You can enjoy more peace of mind with baggage insurance, car rental insurance, and coverage for trip interruptions and delays.
Chase Sapphire Reserve
The Chase Sapphire Reserve is one of the best credit cards for frequent fliers. Although there’s a $550 annual fee, Chase offers up to $300 in statement credits to refund your yearly travel expenses.
Additionally, you can earn three points for every dollar you spend on qualifying travel purchases once you collect your $300 travel credit.
In terms of trip cancellation insurance, you can qualify for refunds up to $10,000 each trip, $20,000 if you paid for your family, or $40,000 each year. If you used your Chase Ultimate Rewards points to cover your trip, you’d receive a refund equal to your points’ monetary value.
Chase’s insurance covers you and immediate relatives, provided you used your Chase Sapphire Reserve card to pay for their trip. If you are forced to quarantine, are too sick to travel, are injured, hospitalized, or inclement weather poses a safety hazard, Chase will cover your expenses.
You can also receive coverage of rental cars, baggage delays, lost luggage, travel-related accidents, delays, interruptions, and more.
Chase Sapphire Preferred
The Chase Sapphire Reserve only costs $95 per year, so if you travel infrequently but still want trip cancellation insurance, this is a worthwhile alternative to the Chase Sapphire Reserve.
Like the previous two cards, the Chase Sapphire Preferred offers you and your immediate family members coverage, as long as you used your card to pay for at least part of the trip.
You can enjoy similar insurance offered by the Chase Sapphire Reserve, such as quarantine, inclement weather, illness, injury, strikes, a change in military orders, subpoenas, and more.
Like its counterpart, this credit card also comes with additional travel perks, including coverage for car rentals, baggage delays, lost luggage, travel assistance, accidents, trip delays, and interruptions.
Whenever you need to travel, having the right travel credit card can make all the difference. And since this holiday season looks much different from previous years, it never hurts to have a little extra protection.
Travel credit cards with trip cancellation insurance may all offer similar coverage at first glance. But you should also make sure to read what’s not covered.
For example, many cards, including those on this list, don’t offer coverage for preexisting medical conditions. And in many cases, you will need to provide proof from your doctor about your ability to travel.
Having the right travel credit card is good, but having a clear understanding of the terms, conditions, and restrictions are even better. This ensures that you won’t just have peace of mind, but you will also have the protection you need in case of an emergency.
- Devaney, Tim. “5 Best Credit Cards With Trip Cancellation Insurance.” Credit Karma, 5 Dec. 2020, www.creditkarma.com/credit-cards/i/5-best-credit-cards-with-trip-cancellation-insurance.