Just when many people thought the pandemic was over, the COVID-19 delta variant threatened fall and winter travel plans. But if you’ve booked travel with a credit card that offers travel insurance, you may be able to recoup some of your costs.
For example, your card may provide some coverage if your trip is canceled or disrupted, and it may cover the cost of delayed or lost baggage.
In general, premium rewards cards – which typically charge an annual fee – provide better coverage.
The protections usually take effect when events that affect your travel are beyond your control, said Nick Ewen, travel rewards expert at The Points Guy, a consumer travel website.
For example, suppose a flight delay caused you to miss a night in a hotel room that you reserved with a non-refundable prepayment. If you paid for the room with a credit card that includes travel insurance, the card will more than likely cover your loss. But if you decided you didn’t want to take the trip again – possibly due to concerns about COVID-19 – your card’s travel insurance likely wouldn’t cover your losses.
Not all cards are created equal.
The Chase Sapphire Reserve card ($ 550 annual fee) offers cancellation / interruption coverage up to $ 10,000 per person, for example, while the American Express Platinum card ($ 695 annual fee for new cardholders) offers up to $ 10,000 per trip.