Does Credit Card Travel Insurance Cover Coronavirus Cancellation Cases? [Updated]
When it comes to additional travel insurance fees, we usually skip it . And this is not because we are extremely confident that all your trips will go exactly as planned – it is just that if you are not going on a long international trip, you can probably get the necessary benefits from the credit card you used to buy tickets. and booking.
But the coronavirus outbreak thwarted this advice. What should a traveler do with a ticket?
“The general uncertainty surrounding the spread of the coronavirus has raised a lot of concern for travelers,” said Casara Barto, spokesman for travel insurance comparison site SquareMouth . The company has seen an increase in the number of travelers still in the process of travel planning but want to make sure they have protection in case an outbreak derails their plans.
The good news is that many travel companies, such as airlines, have relaxed their booking policies. For example, JetBlue announced this week that it is removing flight change and cancellation fees for bookings made between March 6th and March 31st, including travel before September 8th. Likewise, American Airlines will waive non-refundable fare change fees for flights booked before March 31st.
Is your credit card coverage sufficient?
But let’s say you’re tied to your travel plans and can’t easily make changes or get a refund. Is your credit card coverage sufficient?
Probably no. If you take a close look at your card benefits booklet (or online version), you will most likely see that travel cancellation or interruption insurance is related to “unforeseen” circumstances. The high-profile coronavirus outbreak is considered an anticipated event for insurance companies, which are setting specific dates for the outbreak that could affect travel. And it will likely reflect on your credit card policy as well.
Mastercard World and Visa Infinite cards, like some American Express cards, generally have the most reliable travel insurance benefits . I asked both card networks to comment on any benefit restrictions due to the coronavirus. A Mastercard spokesman said cardholders should contact their card’s issuing bank and familiarize themselves with the benefits of their card to determine what coverage they can get. Visa did not respond to my request.
In the meantime, I called Chase, where I have several travel benefit cards. The number on my card benefits booklet alerted me that the number of calls has increased and travelers should first contact their flight or hotel to inquire about rebooking or cancellation options.
When I called the number on the back of my card instead, the representative said that travel cancellation insurance for my card does not currently cover coronavirus-related travel problems; and that they recommend asking the seller for a refund first.
Is it too late to take out separate travel insurance?
Now that the coronavirus is a “predictable” event, you cannot buy insurance coverage to cover it.
Barto said the dates that carriers hold for the coronavirus “event” range from January 21 to January 27. “After these dates pass, you will no longer be able to purchase a standard policy with benefits for the coronavirus,” she explained.
While some carriers still offer medical care or evacuation coverage if you contract the coronavirus while traveling, she said only about one-third of the carriers SquareMouth tracked still offer this.
If you’re still planning a trip or have recently booked tickets, Barto said, the only insurance policies SquareMouth recommends is coverage that includes “cancellation for any reason.”
This coverage allows you to cancel your trip in just a few days for any reason, really, including that you just don’t want to travel anymore.
Barto said that SquareMouth generally discourages travelers from receiving a “cancellation for any reason” policy, as most of the cancellation reasons fall under the standard policy.
A standard travel interruption or cancellation policy usually costs 7-10% of the cost of the trip, depending on the age of the traveler and the length of the trip. A cancellation for any reason policy costs about 40% more.
She shared a sample search for a one-week trip worth $ 8,000 for two travelers over 55. The standard travel cancellation policy will cost $ 472, while the “cancellation for any reason” upgrade will increase the cost of this policy to about $ 660. However, “it will allow the traveler to cancel the trip for any reason, including fear of the coronavirus outbreak, and receive a 75% refund of the trip cost,” Barto explained.
If it’s too late to add this coverage to your travel insurance policy, or if you find it difficult to justify the cost of buying insurance coverage at all, start by contacting the company that issued your passes or reservations for their latest policies. If you find one that’s particularly restrictive and need backup in case of cancellation, you can talk to your credit card issuer.
Your insurance company may have options as well. “We are also learning from some [insurance] providers that if your trip is canceled, they will allow travelers to carry over their policy to a new trip,” Barto said.
This post was originally published on March 6, 2020 and was updated on March 9, 2020 to add information from Mastercard.