What Credit Cards Provide Trip Cancellation Coverage?

Credit cards are a great way to make purchases and earn rewards, but they can also provide valuable travel benefits. One of these benefits is trip cancellation coverage, which can protect you from financial loss if you have to cancel your trip due to unforeseen circumstances. In this article, we will explore what credit cards provide trip cancellation coverage and how it works.

What is trip cancellation coverage?

Trip cancellation coverage is a type of travel insurance that reimburses you for prepaid, non-refundable expenses if you have to cancel your trip due to a covered reason. Covered reasons typically include things like illness, injury, or death of you, a family member, or a travel companion, severe weather, terrorism, or a job loss. Trip cancellation coverage can provide peace of mind knowing that you won't lose your money if you have to cancel your trip.

What credit cards provide trip cancellation coverage?

Many credit cards offer trip cancellation coverage as a benefit, but the specifics of the coverage can vary widely. Some cards provide more robust coverage than others, so it's important to read the fine print and understand the terms and conditions of your card's coverage. Here are some examples of credit cards that offer trip cancellation coverage:

Chase Sapphire Preferred® Card: This card provides trip cancellation and interruption insurance up to $10,000 per covered trip, as well as trip delay reimbursement up to $500 per covered person per trip. To be eligible for coverage, the trip must be purchased with the card or with Ultimate Rewards points.

Citi Prestige® Card: This card provides trip cancellation and interruption insurance up to $5,000 per covered trip, as well as trip delay protection up to $500 per trip. To be eligible for coverage, the trip must be purchased with the card.

The Platinum Card® from American Express: This card provides trip cancellation and interruption insurance up to $10,000 per covered trip, as well as trip delay coverage up to $500 per covered person per trip. To be eligible for coverage, the trip must be purchased with the card or with Membership Rewards points.

How does trip cancellation coverage work?

If you have to cancel your trip due to a covered reason, you will need to file a claim with your credit card's benefits administrator. You will typically need to provide documentation to support your claim, such as doctor's notes, death certificates, or police reports. Once your claim is approved, you will receive reimbursement for your prepaid, non-refundable expenses up to the coverage limit.

It's important to note that trip cancellation coverage is not a catch-all solution for any reason you may need to cancel your trip. Covered reasons are typically limited and may vary by card, so it's important to understand the specific terms and conditions of your coverage.

Tips for using trip cancellation coverage

Here are some tips for using trip cancellation coverage effectively:

- Read the fine print: Make sure you understand the specific terms and conditions of your card's coverage, including what is covered and what is not covered.

- Purchase your trip with the card: To be eligible for coverage, you will typically need to purchase your trip with the card that provides the coverage.

- Keep documentation: If you need to file a claim, you will need to provide documentation to support your claim. Keep all receipts, tickets, and other documentation related to your trip.

- Know the covered reasons: Covered reasons for trip cancellation can vary by card, so make sure you understand what is covered and what is not covered.

- Plan ahead: If you know you will be traveling and want trip cancellation coverage, make sure you apply for a card that offers this benefit well in advance of your trip.

Conclusion

Trip cancellation coverage is a valuable benefit that can provide peace of mind when traveling. Many credit cards offer trip cancellation coverage as a benefit, but the specifics of the coverage can vary widely. To use trip cancellation coverage effectively, it's important to read the fine print, purchase your trip with the card, keep documentation, know the covered reasons, and plan ahead. By doing so, you can make the most of this valuable benefit and protect yourself from financial loss when traveling.