Kiplinger’s Personal Finance: Credit cards offer travel insurance | Business News


Your card could present some protection in case your journey is canceled or disrupted.

Just when many individuals thought the pandemic was over, the COVID-19 delta variant has threatened fall and winter travel plans. But in case you booked a visit with a bank card that provides travel insurance, you might be able to recoup a few of your prices.

For instance, your card could present some protection in case your journey is canceled or disrupted, and it could cowl the price of delayed or misplaced baggage.

In normal, premium rewards cards — which usually cost an annual price — present higher protection.

Protections normally kick in when occasions that have an effect on your journey are out of your management, stated Nick Ewen, travel rewards professional at The Points Guy, a shopper travel web site.

For instance, suppose a flight delay precipitated you to overlook an evening in a resort room that you just reserved with an advance, nonrefundable cost. If you paid for the room with a bank card that features travel insurance, the cardboard would greater than doubtless cowl your loss. But in case you determined you now not wished to go on the journey — maybe due to issues about COVID-19 — your card’s travel insurance in all probability wouldn’t cowl your losses.

All cards will not be created equal.

The Chase Sapphire Reserve card (annual price $550) provides cancellation/interruption protection of as much as $10,000 per particular person, for instance, whereas the American Express Platinum card (annual price $695 for brand spanking new cardholders) supplies as much as $10,000 per journey.