Does credit card travel insurance cover COVID cancellations? – Business Insider
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Some travel credit cards offer excellent trip cancellation, interruption, and delay insurance.
But if you have to cancel due to COVID, you might not be covered.
Buying separate travel insurance may be your best bet if you want more comprehensive coverage.
Read Insider’s guide to the best travel rewards credit cards.
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Nobody wants to think about a positive test ruining their travel plans, but as the omicron variant spreads, it’s better to be safe than sorry.
Today, we’ll explore two unlucky scenarios – canceling a trip due to a positive COVID-19 test result and getting sick while you’re vacationing – and your insurance options using your credit cards. For this guide, we’ll dive primarily into the policies of the four main credit card issuers in the US – American Express, Chase, Capital One, and Citi – none of which have plans that specifically cover COVID-19 expenses.
However, other credit card issuers – and insurance plans – may also offer insurance that specifically covers COVID-19 costs.
We’re focused here on the rewards and perks that come with each card. These cards won’t be worth it if you’re paying interest or late fees. When using a credit card, it’s important to pay your balance in full each month, make payments on time, and only spend what you can afford to pay.
Coronavirus and travel insurance: What are your options?
If you catch COVID-19 before your trip, you can pretty much kiss your vacation goodbye. But what are your options if you already have existing travel plans?
Whether you’ll be reimbursed for a canceled trip due to COVID-19 will depend on whether you have travel insurance that covers the pandemic in particular. Most credit cards don’t cover COVID-19 expenses but some cards do include perks such as trip interruption or cancellation insurance.
American Express card travel insurance
Regular APR
See Pay Over Time APR
Recommended Credit Score
Excellent
Regular APR
See Pay Over Time APR
Recommended Credit Score
Excellent
Pros
Long list of travel benefits, including airport lounge access and complimentary elite status with Hilton and Marriott (enrollment required)
Annual statement credits with Saks and Uber
Cons
Bonus categories leave something to be desired
One of the highest annual fees among premium travel cards
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Earn 100,000 Membership Rewards® points after you spend $6,000 on purchases on your new Card in your first 6 months of Card Membership. Apply and select your preferred metal Card design: classic Platinum Card®, Platinum x Kehinde Wiley, or Platinum x Julie Mehretu.
Earn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year and earn 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel.
$200 Hotel Credit: Get $200 back in statement credits each year on prepaid Fine Hotels + Resorts® or The Hotel Collection bookings with American Express Travel when you pay with your Platinum Card®.
$240 Digital Entertainment Credit: Get up to $20 in statement credits each month when you pay for eligible purchases with the Platinum Card® at your choice of one or more of the following providers: Peacock, Audible, SiriusXM, and The New York Times. Enrollment required.
$155 Walmart+ Credit: Cover the cost of a $12.95 monthly Walmart+ membership with a statement credit after you pay for Walmart+ each month with your Platinum Card. Cost includes $12.95 plus applicable local sales tax.
American Express has expanded The Centurion® Network to include 40+ Centurion Lounge and Studio locations worldwide. There are even more places your Platinum Card® can get you complimentary entry and exclusive perks.
$200 Airline Fee Credit: Get up to $200 in statement credits per calendar year in baggage fees and more at one select qualifying airline.
$200 Uber Cash: Enjoy Uber VIP status and up to $200 in Uber savings on rides or eats orders in the US annually. Uber Cash and Uber VIP status is available to Basic Card Member only.
$300 Equinox Credit: Get up to $25 back each month on the Equinox+ digital fitness app, or eligible Equinox club memberships when you pay with your Platinum Card®. Enrollment required.
$179 CLEAR® Credit: Use your Card and get up to $179 back per year on your CLEAR® membership.
$695 annual fee.
Terms Apply.
Some American Express cards include trip cancellation and interruption insurance, with a maximum benefit amount of up to $10,000 per covered trip and up to $20,000 per eligible card, per consecutive 12-month period. Round-trip travel is required to qualify, and you must charge the entire cost of transportation to your eligible card.
Amex cards with trip cancellation/interruption insurance:
Early on in the pandemic, American Express clarified with cardholders whether COVID-19-related cancellations would be covered under their eligible card’s insurance. Amex says fear of traveling to a specific destination due to a pandemic – such as COVID-19 – is not a “covered loss under American Express’s Trip Cancellation and Interruption Insurance benefit.”
Amex says a trip canceled or interrupted solely because the intended destination has reported incidents or confirmed cases of COVID-19 or because the intended destination is the subject of a travel warning wouldn’t be covered.
However, covered losses may include:
Accidental bodily injury, loss of life, or sickness of either the eligible traveler, traveling companion, or a family member of the eligible traveler or traveling companionQuarantine imposed by a physician for health reasons
Amex encourages cardholders to file a claim if a covered loss may apply to their situation. “[A]ssuming all terms and conditions are met, you may be eligible for coverage if you contract COVID-19 or are quarantined by a Physician for health reasons related to COVID-19 on or before the departure of the Covered Trip, which causes your trip to be canceled.”
Read more: Guide to the best credit cards with travel insurance
Some Amex cards also offer up to $500 per trip in coverage for expenses like meals and lodging when your trip is delayed more than six hours or requires an overnight stay. But keep in mind that if you’re delayed because of a pandemic-related reason, like getting held up at your destination because of a positive result, Amex won’t cover you. This perk only includes covered losses like inclement weather, terrorism, or equipment issues – not the pandemic.
Chase credit card travel insurance
Regular APR
15.99%-22.99% Variable
Recommended Credit Score
Good to Excellent
Regular APR
15.99%-22.99% Variable
Recommended Credit Score
Good to Excellent
More Information
Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.
Enjoy benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases, plus more.
Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 60,000 points are worth $750 toward travel.
With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash’s subscription service. Activate by 03/31/22.
Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
Chase has some of the most generous policies if you need to cancel a trip.
A handful of Chase cards, including the Chase Sapphire Reserve®, Chase Sapphire Preferred® Card, Ink Business Preferred® Credit Card, Chase Freedom Flex℠, and Chase Freedom Unlimited®, offer trip cancellation and interruption insurance. Some co-branded cards, like The World Of Hyatt Credit Card
, United Club℠ Infinite Card, and IHG® Rewards Club Premier Credit Card, also offer these benefits. The coverage limits vary depending on the card.
The Chase Sapphire Preferred® Card, a popular credit card for beginning and expert travelers, offers perhaps the best insurance if you happen to get sick. According to Chase, if your trip is canceled or cut short due to illness (or severe weather or other covered situations), you can be reimbursed up to $10,000 per person and up to $20,000 per trip for pre-paid non-refundable travel expenses. The expenses also include fees like including passenger fares, tours, and hotels.
Read more: The Chase Sapphire Preferred card’s travel insurance has saved me over $4,000 — here’s why I’ll never cancel it
With Chase cards, you’re covered by the company’s insurance if a “covered loss” prevents you from traveling and results in the cancellation of your travel arrangements. A covered loss includes incidents like injury, sickness, severe weather, or a terrorist action experienced by the cardholder or an immediate traveling companion.
Not everything is covered, however. Want to change or cancel your plans due to pandemic fears? Chase’s insurance won’t cover the claim. Chase, in its benefits explanation of the Chase Sapphire Preferred® Card, explicitly states that “[y]our disinclination to travel, a country closing its borders, or a Travel Supplier canceling or changing travel arrangements due to an epidemic or pandemic” is not covered under its policy.
Also, Chase won’t cover travel plans canceled or changed by a common carrier, tour operator, or any travel agency unless the cancellation results from severe weather or an organized strike affecting public transportation. Additionally, you aren’t covered if your plans change due to financial circumstances, a pre-existing condition, or if you’re traveling against a doctor’s orders.
What is covered? Accidental bodily injury, loss of life, or illness by you or a travel companion that results in your trip having to be changed or canceled. If you or your travel companion are required to quarantine due to health reasons by a physician or by a “competent governmental authority having jurisdiction,” you may also be covered.
If you have the premium Chase Sapphire Reserve®, you may also be eligible for an emergency medical and dental benefit, which provides reimbursement for certain medical expenses incurred during a covered trip. Services like medical and dental visits, hospital stays, anesthesia, and ambulatory services are covered – but non-medical services are not.
Read more: 11 benefits that make Chase Sapphire Reserve a must-have for frequent travelers
In order to qualify, your trip must be greater than five consecutive days but less than sixty consecutive days, and is in excess of 100 miles from home. Travelers can eligible to receive up to a maximum of $2,500 for medical expenses not paid or payable by your medical insurance.
Capital One credit card travel insurance
Regular APR
16.99% – 23.99% Variable
Recommended Credit Score
Excellent
Regular APR
16.99% – 23.99% Variable
Recommended Credit Score
Excellent
Pros
Excellent welcome bonus and miles earning
Premium perks including airport lounge access and statement credits
Visa Infinite benefits including travel and shopping protections
Cons
High annual fee
Annual travel statement credits only apply to Capital One Travel purchases
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Earn 100,000 bonus miles when you spend $10,000 on purchases in the first 6 months from account opening, equal to $1,000 in travel
Limited-time Offer: Receive up to $200 back in statement credits for vacation rentals charged to your account within your first year
Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you’ll get Capital One’s best prices on thousands of options
Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel, plus unlimited 2X miles on all other purchases
Escape the airport crowd and recharge before your flight with unlimited access to all-inclusive amenities at the Capital One Lounge and at 1,300+ Priority Pass lounges worldwide
Receive up to a $100 credit for Global Entry or TSA PreCheck®
Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more – you can even transfer your miles to your choice of 15+ travel loyalty programs
Your travel insurance type will depend on your Capital One card. But generally, Capital One isn’t as generous with travel insurance as other issuers.
However, the new Capital One Venture X Rewards Credit Card, a gamechanger for travel lovers, offers “automatic insurance” for a covered loss at no extra charge when you use your credit card to purchase your fare. When you pay for your air, bus, cruise, or train transportation with the card, you’re eligible for accidental death or dismemberment coverage of up to $1,000,000.
This insurance is automatically applied when the entire cost of the fare is charged to your Capital One Venture X Rewards Credit Card account. Capital One says it may cover loss resulting from “death, Accidental Bodily Injury, disease or physical illness of You or an Immediate Family Member of the Insured person.” In addition, the physical illness or disease must prevent you from traveling — bacterial or viral infection or bodily malfunctions that don’t stop you from traveling don’t count.
Read more: Capital One Venture X card review
The card also offers trip cancellation/interruption and trip delay reimbursement insurance – with some exceptions. If your trip is cut short or canceled for a covered reason like illness or severe weather, you can be reimbursed up to $2,000 per person (you and immediate family members) for pre-paid, non-refundable tickets if you booked with your Capital One Venture X Rewards Credit Card. And if your flight is delayed overnight or by six hours or more, you and your immediate family can get reimbursed up to $500 per person for reasonable expenses like hotel rooms, food, toiletries, or clothes.
But, like most card issuers, COVID-19 expenses aren’t covered costs. For instance, the Capital One Venture X Rewards Credit Card’s trip delay coverage only applies to “covered hazards” including equipment failure, inclement weather, strikes, or hijackings.
Capital One is rolling out Cancel For Any Reason (CFAR) insurance on trips booked through the Capital One Travel Portal. For a nominal fee, you’ll have the ability to cancel your flight and get 80% of the fare back.
Citi travel insurance
Citi shocked travel lovers everywhere back in 2019 when it dropped travel insurance from its cards entirely. That means if you’re planning travel, especially during the pandemic, you may want to avoid booking using your Citi credit card and use one of the best credit cards for travel insurance instead.
Does any insurance cover COVID-19 costs?
Unfortunately, as you see above, your standard credit card insurance likely won’t be helpful if you get a positive test during your trip and need to quarantine. However, if you’re traveling during the pandemic you should probably consider adding travel insurance to your pre-travel checklist.
Websites such as Squaremouth, Travel Guard, and InsureMyTrip are insurance brokers. Each site offers helpful breakdowns on individual insurance plans, including how much each plan costs and what’s covered (or not).
Using these sites is pretty simple and doesn’t involve much legwork from the traveler, but make sure you have details such as the total cost of your trip handy. Sites like Squaremouth, for instance, will ask for this to determine the best policy for you and your trip.
Read more: Everything you need to know about traveling on an airplane in a pandemic, according to experts
For example, if you were planning a trip to Aruba, Squaremouth has a handful of COVID-19 insurance policies, which can vary based on your state and when you’re traveling. One of the policies, Trawick International’s covers cancellations related to COVID-19 and COVID-19 medical expenses.
The cheapest plan will cover up to $1,000 if your trip has to be canceled, up to $1,500 if your travel plans are interrupted, up to $1,000,000 if you require a medical evacuation, and up to $250,000 in medical expenses. There are a handful of plans, varying in price and coverage, so make sure to play around on the site to get the best deal that works for your specific travel plans.
You may also want to think about adding “Cancel for Any Reason” insurance. This insurance is considered “add-on” coverage, meaning you’d use this insurance if you need to cancel your trip for any reason not covered in your plan. The website TravelGuard has a helpful checklist to determine if you’re eligible to use Cancel for Any Reason (CFAR) insurance.
Generally, you will need to purchase CFAR coverage within 15 days of the initial trip deposit, meaning this isn’t insurance you can add on at the last minute right before your trip. This insurance also won’t be helpful if you need to cancel at the last minute, as CFAR insurance is for bookings canceled more than 48 hours prior to departure. Finally, you’ll need to insure your full trip at the time of purchase.
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