Revenge travel has become a hot topic in recent years, as Americans have gone from hunkering down during the COVID-19 pandemic to wanting to go places. As a result, the Transportation Security Administration screened a record 858.5 million passengers in 2023.
But it wasn't all plain sailing for the traveler. In fact, according to the Bureau of Transportation Statistics, if he boarded a plane in 2022 or 2023, he had a 1 in 5 chance that his flight would be delayed.
Cancellations were particularly problematic in 2022 as the airline industry struggled to recover after the pandemic. In the same year, his 2.7% of air flights were completely abolished, much of it due to lack of personnel and equipment. However, last year's cancellation rate was only 1.3%. According to a Bankrate survey, travelers' biggest concern last summer and last holiday season wasn't cancellations or delays, but rising prices.
Still, there can be hidden costs associated with delays, cancellations, and other travel hiccups. For example, last month my family flew from New Jersey to California, and both flights were delayed by about two hours. With two young children in tow, our nerves were more strained than our wallets, but we still ended up spending a little extra on food (even a basic sandwich at the airport cost at least $15). (It seems like it is, but it's not cheap).
There have been several other travel experiences in recent years that I wish I had paid for with a credit card that offered better travel insurance benefits. These perks may not have been effective with my two hour delay, but my flight from Chicago to New York was diverted to Virginia in the middle of the night and the airline basically left us there. It could definitely be useful for just a short amount of time. . Or twice in 2022, when the airline canceled my flight the night before it was scheduled to depart (apparently due to operational issues) and I couldn't rebook for several days, or when I contracted the coronavirus. It happened when I had to cancel my trip. autumn.
Credit card with comprehensive overseas travel insurance
While not all travel insurance benefits cover the same situations, here are some of the most common credit card travel insurance benefits.
— Refund for travel delays
—Trip cancellation or interruption insurance
—Baggage Delay Protection
—Protection against loss or damage to baggage
—Medical evaluation
—Travel accident insurance
— Rental car collision insurance
The Chase Sapphire PreferredⓇ card is a great example. It offers a lot of travel insurance (among other benefits) for a fairly affordable annual fee of $95. In my estimation, trip cancellation/interruption benefits (up to $10,000 per person, $20,000 per trip) should have applied to both 2022 flight cancellations. In the end, I got them refunded by the airline and booked a new flight with another airline (because the original airline wasn't available until almost a week later), but at an additional cost.
If I had paid for the original ticket with this card, I believe Chase would have refunded me the difference between the canceled flight and the new reservation (although you would have to request a refund through your claims administrator). ). But perhaps if the company had argued that I should have accepted the offer to fly a few days later instead of paying a higher price and immediately rebooking to another airline, my request would have been approved. It's possible that it wasn't.
These programs are not always easy to navigate. A colleague was very persistent and had to submit several documents in order to win a refund claim related to Chase Sapphire SanctuaryⓇ and travel disruption due to a hurricane. Although I wish it were more easily available, this coverage is still very valuable.
For a higher annual fee ($550), Sapphire Reserve offers better travel delay insurance, which kicks in after a six-hour or overnight delay. Sapphire Preferred, on the other hand, is applied after a 12-hour or overnight delay. Both Sapphire Preferred and Sapphire Reserve offer the same core car rental insurance, travel delay insurance (up to $500 per ticket), baggage delay insurance, emergency medical coverage, and more.
Both cards would have come in handy when I was stranded in Virginia (I ended up renting a car and driving about 5 hours home; it was a business trip so my company paid for it) But if it was a personal trip, I would have been able to get a refund from my travel card, which has adequate trip cancellation/interruption coverage).
American Express' Platinum CardⓇ and Capital One Venture X Rewards Credit Card are also included in our list of best credit cards for travel insurance.
It's also worth asking your airline, hotel or car rental agency what they can do for you if you need to cancel. In 2020, I missed out on prepaid rental reservations because I was scared to travel at the beginning of the pandemic. However, when I contracted the coronavirus in 2023 and had to cancel my hotel stay, the hotel generously refunded my non-refundable reservation. Maybe it made a difference that I was actually sick at the time instead of worrying that I might get sick, but it never hurts to ask.
conclusion
Many airlines and hotel chains have relaxed their change and cancellation policies in recent years. Therefore, if an unexpected problem occurs, a good rule of thumb is to first consult your travel agent and then your credit card company as a backup.
For this reason, I think it only makes sense to buy travel insurance if you have a particularly complex or expensive itinerary (especially international travel). In many cases, the coverage is comparable to what you already have between your credit card and your travel agent's policy.
Paying with a credit card that comes with powerful travel insurance benefits gives you extra support at no additional cost.
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(For Capital One products listed on this page, some of the benefits listed above are provided by Visa® or Mastercard® and may vary by product. Terms and exclusions apply, so learn more Please refer to the respective benefit guides for details.
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(Visit Bankrate online at bankrate.com.)
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