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When deciding which cards to add to your rewards earning portfolio, each credit card has advantages; however, some have features that make them stand out from the crowd. The fantastic return on spending with the Blue Cash Preferred® Card from American Express, the anniversary free night certificate that comes with the IHG® Rewards Club Premier Credit Card, or the bonus points on travel spend and excellent benefits of the Chase Sapphire Preferred® Card.
Which cards you apply for requires a careful examination of your travel goals and a deep understanding of the benefits attached to each card. We've detailed how the Sapphire Preferred covers you with primary Auto Rental Collision Damage Waiver and, in this post, we want to expand on the Trip Cancellation and the Trip Interruption Insurance.
There are some crossovers in the definition for the two which we'll group together, and the differences between them will be highlighted.
Who Does The Insurance Cover?
Automatic coverage is provided to the primary cardholder and their immediate family which includes spouse or partner, children, siblings, parents, grandparents, aunts, uncles, nieces, and nephews.
What is Trip Cancellation Insurance?
Trip Cancellation Insurance covers you and immediate family members when a Covered Loss prevents you from traveling and results in the cancellation of travel arrangements for a Covered Trip. The coverage will reimburse you up to $10,000 per person for each Covered Trip up to $20,000 total per Covered Trip.
What is Trip Interruption Insurance?
Trip Interruption Insurance covers you and immediate family members for up to $10,000 for each Covered Trip when a Covered Loss causes interruption to a Covered Trip (up to $20,000 total per Covered Trip), either on the way to your point of departure or after you have departed.
Note: Breaking it down, Trip Cancellation covers you BEFORE you leave, and Trip Interruption covers you from the moment you start traveling.
For both benefits, a Covered Trip is defined as:
Covered Trip means any pre-paid tour, trip or vacation when some portion of the cost for such travel arrangements less any redeemable frequent flyer miles, points, coupons or certificates, or other types of redeemable Rewards has been charged to your Account.
If you have redeemed Chase Ultimate Rewards® from the cardholder's account or if you used your Sapphire Preferred to pay for the taxes and fees associated with an award booking from another program, you are covered.
A Covered Loss is defined as:
- Accidental Bodily Injury, Loss of Life, or Sickness experienced by you, a Traveling Companion, or an Immediate Family Member of you or a Traveling Companion
- Severe weather, which prevents a reasonable and prudent person from beginning or continuing on a Covered Trip
- Change in military orders for you, your Spouse, or your Domestic Partner
- A terrorist action or hijacking
- A call to jury duty or receiving a subpoena from the courts, neither of which can be postponed or waived
- Finding your or your Traveling Companion’s dwelling to be uninhabitable
- Quarantine imposed by a Physician for health reasons
- Financial insolvency of the Travel Agency, Tour Operator, or Travel Supplier whose services you booked
While it covers a lot of situations, you'll notice the absence of any delays or cancellations by the carrier, travel agency, or tour operator (unless the cancellation is caused by severe weather or organized strikes).
Meaning missed connections and stays due to delays aren't covered. Under certain circumstances, some costs associated with delays will be covered by another benefit called Trip Delay Reimbursement which is detailed in the Sapphire Preferred Benefits Guide .
What isn't covered?
What isn't covered differs slightly between the two benefits.
- When travel arrangements are canceled or changed by the carrier, travel agency or tour operator unless severe weather or strikes
- Change in your financial or business circumstances
- Pre-existing conditions
- Any accident, injury or loss caused by attempting anything illegal including street racing, any professional sport for you are paid or receive a prize, suicide or self-harm, war, flying on a rocket-propelled aircraft, and where there are U.S. trade and economic sanctions in place.
All items included under Trip Cancellation plus anything caused directly or indirectly by the insured party:
- Traveling against the advice of a Physician
- Traveling while on a waiting list for specified medical treatment
- Traveling for the purpose of obtaining medical treatment, or traveling in the third trimester (the seventh month or after) of pregnancy
Important Note: While we have summarized what is and isn't included we highly recommend you read the full list which can be found inside Trip Cancellation and Trip Interruption section of the Sapphire Preferred Benefits Guide .
How to file a claim?
To make a claim on your travel arrangements you need to contact the Plan Administrator (1-888-320-9961):
Card Benefit Services
P.O. Box 72034
Richmond, VA 23255
Some documents that may be required include:
- Completed claim form
- Copy of the travel itinerary
- Confirmation of the reason for the Trip Cancellation or Trip Interruption—i.e. medical documents, death certificate, or other documentation supporting a Covered Loss
- Copy of the Credit Card statement that shows the charge for prepaid travel arrangements for Trip Cancellation
- Proof of expenses incurred due to a Trip Interruption
- Copy of the cancellation or refund policies of the Common Carrier, Tour Operator, or Travel Supplier
The timeframes to submit claims, documents and proof of loss vary depending on when you initially notify Chase of the claim. Details can be found in the Claim Information section of the Sapphire Preferred Benefits Guide .
Sapphire Reserve and Ink Preferred Trip Interruption & Cancellation Insurance
The Trip Interruption & Cancellation policies of the two Sapphire card's are identical, both covering up to $10,000 per person per covered trip (up to $20,000 per covered trip), and covering up to $40,000 per year.
One of the really cool features of this insurance on the Sapphire card's is that it will cover immediate family members, even when the cardholder isn't present, as long as a portion of the trip has been paid for with the card.
The trip interruption and cancellation insurance offered by the Ink Preferred will cover up to $5,000 in pre-paid or non-refundable travel expenses if a trip is canceled or cut short by a covered situation as per the benefits guide. The policy covers the cardholder, immediate family members, and also persons employed by the company for which the Ink Preferred account is issued, meaning you can claim on employee trips that go awry. It also covers trips purchased using UR points from the account which will be reimbursed a 1¢/point.
That the card will also cover employees of the account holder could be a huge money saver for any employer, see the benefits guide below for the details.
It may seem like a large amount of information to take in, but having a thorough understanding of how the benefits work, what is covered and what is required to file a claim can save you thousands of dollars and a big headache down the road.
If you ever consider purchasing 3rd party insurance for any of your travels, by understanding the benefits afforded to you through the use of your Sapphire Preferred, Sapphire Reserve, or Ink Preferred, you might find out that you're already covered without the need to spend anything extra on that insurance.
Trip Cancellation and Trip Interruption Insurance are just one more reason for you to apply for the Chase Sapphire Preferred® Card.
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