The debt-averse among us may want to put everything on a debit card to be on the safe side—even hefty travel purchases like airfare.
But if you’re not charging travel purchases, you’re missing out on an extra layer of protection that many credit cards offer for their customers.
There’s the obvious reason to use a credit card for travel tickets and while you’re on the road, to protect that precious cash in your checking account. “It’s just safer,” Brandon Neth, audience growth manager at FinanceBuzz, said. He’s also an avid traveler who has been to 56 countries in the past 10 years. “If money’s stolen from your credit card, so much easier to call in, have them shut it down and get a new card,” he said, compared to waiting for potentially months to see a refund to your checking account if your debit card is lost or stolen.
But beyond security, there’s often extra insurance coverage on your credit card that can come in handy when you’re traveling.
“There are very few cases where credit card doesn’t compensate you in some way shape or form if the airline doesn’t take care of you,” in the event of a delay or other inconvenience, Neth said.
There’s one big thing these extra coverage areas don’t protect against, Ted Rossman, analyst at CreditCards.com, warned: “If you truly change your mind.” But if you have a documented reason, these cards can help you recoup the expenses of your inconvenience or emergency.
Types of insurance to look for on your credit card
For some real-world examples, here are some of the extra benefits that come with my Jetblue Mastercard, a credit card I’m definitely not getting paid to talk about but is one of my go-to cards for booking flights:
Trip cancellation and interruption
This covers nonrefundable trip costs if I have to cancel or pause my travel plans. There are a whole bunch of valid reasons listed: sickness or injury that requires canceling the trip before departure; bad weather that cancels the entire trip; a change in military orders; a terrorist act (!); I get called to jury duty or subpoenaed; my “dwelling was made uninhabitable”; or I got quarantined by a physician. Pretty grim stuff, some of it! But it covers the cost of the ticket up to $5,000.
Such coverage could be immensely handy, say, if an airline shut down suddenly, leaving me stranded far from home. (Unlikely, you say? Yes, but may I present to you WOW Air?)
Baggage delay
If my bags don’t come off the conveyor belt as anticipated (and continue to be AWOL for more than 12 hours), I can get reimbursed $100 per day for up to three days to help cover the cost of essentials I may need in the meantime.
Trip delay
If my trip is delayed for more than six hours on the departure or return due to bad weather, a mechanical issue, or lost travel documents, I’ll get reimbursed up to $300.
Remember: This is only valid if I don’t get a refund/credit/voucher/whathaveyou from the airline that’s very sorry for the inconvenience. I’m not sure if the claims form asks, “Did you try tweeting at them?”
Travel accident
This benefit pays up to $250,000 in the event of a serious injury or accidental death during my trip. It’s also valid for partners and dependent children.
Travel assistance
This is sort of a catch-all for when shit goes seriously wrong while I’m traveling. It can provide referrals to doctors or hospitals if I’m more than 100 miles from home, legal referrals or consulates with embassies or consulates, or facilitate a transfer from a family member or friend if I need cash.
(There’s rental car insurance too, but that’s a different post for a different day.)
How to keep track of your travel benefits
Your credit card issuer may have something like a “guide to benefits” available on the site where you pay your bill. You probably got a paper version of this guide in the mail when you first signed up for your card, but unless you recently received a new card, I don’t expect you to have that physical copy handy. The claims process can vary depending on the type of coverage, so get familiar with the fine print before a big trip so you’re not caught off guard.
Then, don’t forget to choose the right card for the right trip. “You do have to book the trip with that card,” Rossman advised. “Make that decision ahead of time. Can really pay off if you do run into these issues.”
Doing that research can make a big difference. Neth said that on his last trip to Europe, his bags were delayed five days. His card (it was Chase Sapphire Reserve, I’m sure no one is surprised), reimbursed him for $100 for each of those five days so he could buy clothes and toiletries. Plus, he said that card also covers a flight delay after six hours—far more helpful than credit cards that only provide delay coverage after what would surely be a miserable 12 hours.
If you have a bunch of different cards and want a bird’s-eye view of your coverage, you can add them to the Sift app to see a quick snapshot or check benefits for purchases you’ve already made. The app is one of the many out there to help you get a refund for the difference after a price drop, but the travel benefit info is what makes this choice a more valuable to me than the others.
Here’s what it looks like:
Even if the flight I’m buying is quick or close or inexpensive, knowing my credit card of choice has a few extra benefits provides peace of mind. Plus, it usually allows me to skip right over the trip insurance I keep getting offered every time I book a trip.