Travel Insurances

Travel insurances are an excellent benefit that lets you get your money back if something goes wrong with your trip. These insurances are even more useful lately with the Coronavirus spreading and a plethora of people cancelling trips. International travelers should be especially cautious.

Special thanks to reader John who commented on a recent post. He suggested that I write about third party travel insurances.

Great financial analysis. The one compelling perk that is difficult or even impossible to quantify is the travel insurance included. How would you value that insurance? Are there reasonably priced insurance policies that would provide a frame of reference and comparison? Perhaps this suggests a new research project for you and a new blog?

However, there are plenty of travel insurances that come as benefits with many travel credit cards. Chase and American Express’ mid-tier and premium cards all have some form of travel insurance. Some policies are better than others, depending on the card you used to book travel with. Nonetheless, Chase and Amex are the two best card issuers for both rewards and perks. And their insurance policies will be the focus of this post.

Trip Cancellation & Interruption

Trip Cancellation and Interruption Insurances are two of the most useful travel credit cards perks today. And this is especially true with the rise of the Coronavirus. These insurances usually cover the cardholder and their immediate family members (even if they are not traveling with the cardholder).

Trip Cancellation Insurance provides reimbursement if you cannot travel on or before your scheduled departure date, making you cancel your trip altogether.

Furthermore, Trip Interruption Insurance provides reimbursement if your trip is interrupted because of a covered loss. Covered losses can happen on the way to the point of departure or after departure occurs. This insurance also kicks in if a trip is postponed due to a covered loss and certain fees are incurred if a new departure date is set.

What Is Covered?

Insurances from both Chase and American Express will cover up to $10,000 per trip and up to $20,000 per year. Flight cancellations that happen due to weather, terrorist action, sudden illness or injury, death, and jury duty are included.

For Amex cardholders, only round-trip bookings are included. One-way tickets are not. Taxes and fees on award tickets or Pay With Points tickets are also covered for Amex cardholders.

Which Cards Have This Perk?

Trip Cancellation / Interruption Insurance is available on the following Chase cards:

• Sapphire Reserve
• Sapphire Preferred
• Ink Business Preferred

It’s also available on the following American Express cards:

• The Platinum Card (Personal, Business, Corporate, and all flavors thereof)
• Delta Reserve (Personal and Business)
• Hilton Aspire
• Marriott Bonvoy Brilliant

Trip Delay

Trip Delay Insurance provides reimbursement for expenses such as meals and lodging if your method of travel is delayed for several hours. However, what is covered, the qualifying time period, and the maximum reimbursement amount depends on which card you used to book your travel.

But for all plans, the cardholder, their domestic partner, and any dependent children (up to age 22) are covered.

Chase

Chase’s Trip Delay Insurance is the broadest of the two issuers’ plans. It covers delays in several common carrier travel methods. These include airlines, buses, cruise ships, and trains.

The Sapphire Reserve, Sapphire Preferred, and Ink Business Preferred all cover up to $500 per purchased ticket. The Sapphire Reserve Card provides reimbursement after six hours of delay. Conversely, the Sapphire Preferred and Ink Business Preferred Cards provide reimbursement after 12 hours of delay.

American Express

American Express’ insurance is not as broad as Chase’s. It only covers round-trip flights that are purchased fully with the card. Plus, American Express has two different levels of coverage. Which level you receive depends on the card you used to book travel with.

Premium Amex cards offer a level of coverage that is closer to Chase’s coverage. These cards cover up to $500 per purchased ticket. And they provide reimbursement after six hours of delay.

Conversely, mid-tier Amex cards offer less coverage then their premium counterparts. These cards cover up to $300 per purchased ticket. And they provide reimbursement after 12 hours of delay.

Which Cards Have This Perk?

Trip Delay Insurance is available on the following Chase cards:

• Sapphire Reserve
• Sapphire Preferred
• Ink Business Preferred

It’s also available on the following premium American Express cards:

• The Platinum Card (Personal, Business, Corporate, and all flavors thereof)
• Delta Reserve (Personal and Business)
• Hilton Aspire
• Marriott Bonvoy Brilliant

Plus, it’s available on the following mid-tier American Express cards:

• The Gold Card (Personal, Business, and Corporate)
• The Green Card (Personal only)
• Delta SkyMiles Platinum (Personal and Business)

Baggage Delay

Baggage Delay Insurance is another useful travel perk. It reimburses you for the purchase of essential items needed for travel. These items include clothing, toiletries, and a cell phone charging cable. Unfortunately, glasses, contact lenses, hearing aids, and vital documents are not covered.

Chase

Chase’s Baggage Delay Insurance provides reimbursement for up to five days if your baggage is lost or delayed. Plus, you can redeem for essentials if your baggage is delayed for more than six hours. Chase will reimburse you up to $100 per day, up to five days under their plan.

Furthermore, Chase’s plan covers the cardholder, their partner, and any of the cardholder’s immediate family members.

American Express

American Express seldom advertises their Baggage Delay Insurance. However, all Amex cards offer it for their cardholders.

Most Amex cards provide reimbursement up to $1,250 for carry-on baggage. They also cover up to $500 for checked baggage only when traveling on a common carrier vehicle. Amex does not cover checked baggage when flying.

However, premium Amex cards provide more coverage than the rest of the pack. It provides up to $3,000 in reimbursement for carry-on baggage. It also covers up to $2,000 for checked baggage only when traveling on a common carrier vehicle. The Platinum Card also does not cover checked baggage when flying.

Which Cards Have This Perk?

Baggage Delay Insurance is available on the following cards:

• Sapphire Reserve
• Sapphire Preferred
• Ink Business Preferred
• All American Express Cards

Final Draw

Travel Insurances are some of the most useful travel credit card perks in the industry. Fortunately, there are a plethora of cards that come with these perks.

Your mileage may vary in terms of value with these insurances. In many cases, the reimbursement you can receive from Chase or Amex will justify paying your card’s annual fee for the year. Using any of these insurances just once could make your trip a little easier. And having the peace of mind that comes with such insurances is sometimes worth an annual fee.

Reader John suggested that I research third party travel insurance plans. But I believe that using the right credit card to book travel is just as effective for most travelers.