Cancelled flights, a sudden illness, a hurricane rerouting your holiday — most travellers will face a disrupted trip at some point. What many don't realise is that the credit card sitting in their wallet may already include trip cancellation and interruption insurance, free of charge, as long as they used it to pay for the booking.
Trip cancellation cover kicks in before departure: if you have to call off a trip for a qualifying reason — typically illness, injury or severe weather — the card can reimburse prepaid, nonrefundable costs. Trip interruption cover applies once you're already travelling and the trip gets cut short. The catch: unlike standalone policies with 'cancel for any reason' options, card coverage only applies to the specific events listed in the issuer's benefits guide.
The limits vary a lot between issuers. Chase is among the most generous: its premium Sapphire cards and United's top-tier personal card each offer up to $10,000 per covered person and $20,000 per trip, whether the card carries a $95 or a $795 annual fee. Mid-tier Chase cards typically cap reimbursement at $5,000 per person and $10,000 per trip, while entry-level Chase cards often cover only common carrier fares with much smaller caps. American Express premium cards work differently: up to $10,000 per trip, with a $20,000 ceiling per card over any rolling 12 months.
One of the biggest differences is who's actually protected. Chase's premium cards cover the cardholder and immediate family members. Eligible Amex cards go further, also covering travelling companions — people you arranged to travel with from the start. If you're holidaying with friends rather than relatives, that distinction could matter enormously.
Another trap: coverage generally applies only to the portion of the trip you actually paid for with the card. Book a hotel with gift cards but charge the flight to your card, and a cancellation claim likely covers the flight only.
If things go wrong, act fast. Chase generally expects a claim to be opened within 20 days of the cancellation, with documents filed within 90 days. Amex wants notification within 60 days and written proof of loss within 180 days. Gather receipts, doctor's notes and weather advisories — and calling the number on the back of your card early is the simplest way to confirm coverage and deadlines before you book your next trip.
For anyone booking nonrefundable hotels, tours or flights, it's worth checking your card's benefits guide before buying separate travel insurance — you may already be holding a decent policy without knowing it.
The Points Guy
