Trip Cancellation And Interruption Insurance: The Ultimate Guide (2024)

Nothing is worse than arriving at the airport, excited for a trip, only to find a canceled flight put an end to your vacation before it’s begun.

But even when the worst happens, there might be a silver lining. If you have a credit card with trip cancellation insurance, you stand a good chance of getting your money back. While this can’t replace the feeling of sitting on a beach somewhere, it can at least amend the fiscal loss and make that bad day a little better.

What Is Trip Cancellation/Interruption Insurance?

Trip cancellation and interruption insurance is a policy that protects the travel plans of you and those traveling with you, provided you booked your trip with a credit card that provides this insurance. Simply put, if your trip doesn’t happen or is cut short due to forces beyond your control, you could get your money refunded. Canceled flights, freak weather patterns or catastrophic injury are all likely going to be covered, but even something like jury duty may meet the criteria if it forces you away from your vacation prematurely. What is and is not covered will vary slightly depending on the credit card issuer you are working with, but in general, you can expect most unforeseen cancellations to be at least partially refunded.

How Does Trip Cancellation/Interruption Insurance Work?

Trip cancellation and interruption insurance protects non-refundable travel purchases made with your credit card in the event your trip is cut short. This would include things like flights and hotels, but could potentially also include things like concert tickets if they were a part of your trip. As mentioned, different issuers have slight variations in their policies, so the best practice is to check your card’s terms and conditions to see what is covered by your policy. Regardless, when you experience a cancellation, you can bet that at least some of your expenses will be covered. Make your claim as soon as possible to get the ball rolling on your refund.

There is also third-party trip cancellation insurance, which can be purchased independently from what your credit card provides. These policies function almost identically to the policy provided through a credit card. And since some credit card policies are quite comprehensive, this may be an unnecessary expense.

What To Do If You Need To Make a Claim

The first step when making a trip insurance claim is to collect documentation of the cancellation. The more information you can amass, the better. You’ll definitely need receipts showing how much you spent, but also showing your cancellation. If company you booked with made the cancellation, it should provide you with written notification of the change. If this is not provided, you may have to follow up to get written confirmation of cancellation. If your plans were canceled due to injury or illness, a statement from a doctor should suffice.

After you have all your documentation in order, the next step is to file your claim. You can do this by calling the customer service number on the back of your card and filing your claim with the representative. They’ll likely send you a form to fill out, which you must complete and send back with your documentation. Once it’s received and approved, you should see the refund reflected on your credit statement.

Alternatively, you can file your claim online. Most issuers now have some kind of claim submission page on their website. This process is the same—you submit your documentation showing your cancellation to the issuer through the site. This is probably the simpler option for most people, since it can be done independently at instant speeds, rather than waiting for a letter to be sent through the mail.

Also, it’s important to remember that while most policies give you a window to file your claim—usually around 20 to 90 days—the sooner you make your claim, the sooner you get your money.

Differences in Trip Cancellation/Interruption Insurance Among Issuers

American Express

Only Amex’s elite cards offer trip cancellation insurance, all with the same policy:

• The Platinum Card® from American Express: If you purchase a round trip entirely with your eligible card and a covered reason cancels or interrupts your trip, trip cancellation and interruption insurance can help reimburse your non-refundable expenses purchased with the same eligible card, up to $10,000 per trip and up to $20,000 per eligible card per 12 consecutive month period.¹ (Terms apply. See rates & fees)
• Delta SkyMiles® Reserve Business American Express Card: The maximum benefit amount for trip cancellation insurance is $10,000 per covered trip and $20,000 per eligible card per 12 consecutive month period.¹ (Terms apply. See rates & fees)
• Hilton Honors Aspire Card from American Express*: The maximum benefit amount for trip cancellation insurance is $10,000 per covered trip and $20,000 per eligible card per 12 consecutive month period. (Terms apply. See rates & fees)
• Marriott Bonvoy Brilliant® American Express® Card: If you purchase a round trip entirely with your eligible card and a covered reason cancels or interrupts your trip, trip cancellation and interruption insurance can help reimburse your non-refundable expenses purchased with the same eligible card, up to $10,000 per trip and up to $20,000 per eligible card per 12 consecutive month period.¹ (Terms apply. See rates & fees)

Bank of America

• Bank of America® Premium Rewards® credit card: Up to $2,500 for nonrefundable passenger fares if your trip is canceled or cut short by sickness or other covered situations.
• Bank of America® Premium Rewards® Elite credit card*: Receive reimbursem*nt for the common carrier passenger fare in the event of trip cancellation or trip interruption.

Capital One

• Capital One Venture X Rewards Credit Card: Up to $2,000 per insured person for the nonrefundable common carrier ticket(s) that are paid for with the covered account and/or rewards programs associated with the covered account. You, your spouse (or domestic partner) and your dependent children are eligible for coverage if the entire cost of the trip is charged to the account, less redeemable certificates, vouchers, or coupons or rewards program associated with the covered account².

Chase

• Chase Sapphire Preferred® Card: If your trip is canceled or cut short by sickness, severe weather and other covered situations, you can be reimbursed up to $10,000 per person and $20,000 per trip for your prepaid, nonrefundable travel expenses, including passenger fares, tours and hotels.
• Chase Sapphire Reserve®: If your trip is canceled or cut short by sickness, severe weather and other covered situations, you can be reimbursed up to $10,000 per person and $20,000 per trip for your prepaid, nonrefundable travel expenses, including passenger fares, tours and hotels.
• United℠ Explorer Card, United℠ Business Card and the United Quest℠ Card: You can be reimbursed up to $1,500 per person and $6,000 per trip for your prepaid, nonrefundable passenger fares, if your trip is canceled or cut short by sickness, severe weather and other covered situations.
• United Club℠ Infinite Card: If your trip is canceled or cut short by sickness, severe weather, and other covered situations, you can be reimbursed up to $10,000 per person and $20,000 per trip for your prepaid, nonrefundable travel expenses including passenger fares, tours and hotels.
• The World of Hyatt Credit Card: If your trip is canceled or cut short by sickness, severe weather and other covered situations, you can be reimbursed up to $5,000 per person and $10,000 per trip for your prepaid, nonrefundable travel expenses, including passenger fares, tours and hotels.

Discover

Discover discontinued travel insurance as a benefit in 2018, so if you have a Discover card and are worried about your trip being canceled, it may be wise to purchase third-party insurance.

Mastercard

Like Visa, Mastercard has three tiers of credit cards. Two of those tiers, World and World Elite, offer travel insurance. However, the specifics of these policies vary from card to card. Check your specific card’s terms and conditions to see what exactly is covered by your policy.

U.S. Bank

• U.S. Bank Altitude® Reserve Visa Infinite® Card*: Trip cancellation and interruption benefits pay up to $2,000 per insured person for the nonrefundable common carrier ticket(s) that you paid for with your covered account and/or rewards programs associated with your covered account. you, your spouse (or domestic partner) and your dependent children are eligible for coverage if you charge the entire cost of the trip using your account, less redeemable certificates, vouchers, or coupons or rewards program associated with Your covered account. You must file your claim within 20 days of the trip cancellation or interruption or as soon as reasonably possible and provide written claim notice to the plan’s administrator.

Visa

Of the three tiers of Visa cards, the Signature and Infinite offer trip cancellation insurance. The policies between the two cards are virtually identical. The policies for both state: “Trip Cancellation and Interruption benefits pay up to $2,000.00 per insured person for the non-refundable common carrier ticket(s) that you paid for with your covered account and/or rewards programs associated with your covered account. You, your spouse (or domestic partner) and your dependent children are eligible for coverage if you charge the entire cost of the trip using your account, less redeemable certificates, vouchers, or coupons, or rewards program associated with your covered account.” This policy covers the cardholder, their spouse as well as dependent children under the age of 25 (if they’re enrolled full-time in school), so keep that in mind if traveling with older passengers.

What To Do After Making Your Claim

After making your claim, all there is to do is wait. Some issuers offer a feature on their website that allows you to track the status of your claim, but this would fall into the category of “watching paint dry.” No matter how much you refresh the page, sadly, it does not make your claim process any faster. In general, you can expect your claim to be processed within 90 days. If you have not received your refund after this time has elapsed, it may make sense to follow up with your issuer. But again, 90 days is a guideline and not a rule. It could take longer depending on how many claims have been filed ahead of yours.

Bottom Line

Nobody wants to have their trip canceled or interrupted for any reason. But if your card offers trip cancellation insurance, at least you can have some peace of mind knowing that compensation is available.

¹The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period. Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.

²For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

All information about Hilton Honors Aspire Card from American Express has been collected independently by Forbes Advisor