Question: Can I Use Trip Delay Insurance to Stay at a Better Hotel?
Our question this week is about trip delay insurance provided by credit cards. But not just the normal ‘what does it cover?’ type of questions. This might be something you’ve wondered when the airline puts you up at some random hotel during a delay, so let’s jump in.
The Question
Our question this week comes from Adam in our Facebook group:
This is something I’ve always wondered: if you have a Chase card with Trip Delay, and the airline offers you a room at some disgusting motel, are you obligated to stay there? Or can you still claim the benefit and go stay at a Hyatt, etc?
So, can you go to a better hotel? Will this be covered by your trip delay insurance on the credit card?
Chase Trip Delay Insurance
Numerous credit cards offer trip delay insurance. We even covered the best cards for travel insurance previously. However, our question from Adam is a bit more specific. What if the airline puts you up at a motel that’s sub-standard? Or maybe you just want to go somewhere better, if it will be reimbursed.
The Chase Sapphire Reserve has trip delay and cancellation insurance. Let’s use this card as an example. The terms of the benefit for trip delay say this:
This benefit applies to reasonable expenses incurred during Your delay not otherwise covered by Your Common Carrier, another party, or Your primary personal insurance policy. You will be refunded the excess amount (up to the maximum) once all other reimbursement has been exhausted up to the limit of liability.
I’m not an insurance underwriter, but I’ve dealt with numerous trip insurance claims in my day. The “reasonable expenses…not otherwise covered” is what will get you. If the airline offers you a hotel, this looks to the insurance team like your expense was covered. But what if the hotel was dirty or unfit in some way? You would need to prove that going somewhere else (and the insurance policy paying for it) is “reasonable”.
I’m not saying that’s impossible, but good luck. Document EVERYTHING if it really comes to the point where you need to move to another hotel.
Final Thoughts
Dealing with trip delays sucks, to be blunt. Knowing that you have trip delay insurance via a credit card can make things better by reducing the stress. However, the terms are not a license to spend freely. Insurance companies aren’t in the business of handing out money freely. You’ll need to convince them that moving to a different hotel than what your airline/cruise company/etc. provided during a delay was necessary and reasonable.
Have a question? Ask in our Facebook group or email me at ryan[at]milestomemories.com
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The issue with hotel provided by airline
Is 1 hour line to get the voucher and another 1 hr line at hotel check in.
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