Many travelers have insurance supplied by travel focused credit cards, but will those programs cover cancellations for coronavirus (COVID-19)? Well, it depends…
The key is whether you choose to cancel a trip, or if you have no control over the decision and the choice is made for you.
Credit card travel insurance has a lot of quirks when it comes to what is and what isn’t covered. In most cases, travel insurance covers prepaid, non-refundable travel expenses including passenger fares, tours and hotels. These eligible travel expenses will only be covered when the full amount of each expense was purchased with your eligible travel credit card.
Assuming these factors are true, your credit card will cover a canceled trip when you meet “covered situations,” which typically include:
- Accidental bodily injury, loss of life or sickness experienced by you, a traveling companion or an immediate family member
- Severe weather that prevents the start or continuation a trip
- Terrorist attack or hijacking
Precautionary cancellations aren’t likely to be covered.
You can purchase insurance outside of the program offered by your credit card that offers “Cancel for Any Reason” coverage. AIG offers plans with CFAR coverages.
So if you’re worried about traveling for fear of contracting coronavirus and choose to cancel or change your trip, there are slim chances your credit card coronavirus/coronavirus–covid-19-and-travel-insurance/86407/”>travel insurance will provide reimbursement.