What Happens To My Credit Card Travel Insurance If I Close The Card?
Credit Card travel insurance is a key benefit many of us enjoy. What happens if you book a trip with the card offering good protections but then cancel that card? Essentially, if you close the card AFTER paying for the trip (benefits become active) but BEFORE the trip starts? Let’s take a look.
An Example of Credit Card Travel Insurance
One of the most popular cards in this hobby is the Chase Sapphire Reserve. That’s because of the many perks it offers, including the travel insurance this credit card provides. That’s why it’s included in our review of 5 great cards with travel insurance perks.
As a representative of what your credit card might provide, here’s a quick look at what the Sapphire Reserve offers:
- Trip interruption
- Trip cancellation
- Trip delay
- Baggage loss / delay
- Rental car insurance
- Accidental death / injury benefits
There are other benefits, as well. You can read them in detail and compare them to other cards in this analysis.
When Do The Benefits Start And End?
The description of benefits for the Chase Sapphire Reserve are available here.
Multiple times throughout the description of benefits, the terms state that “Trips must occur while the insurance is in-force to be eligible for this benefit.” What does that mean? It means the card must still be open. Closing the card or changing to a card that doesn’t include this benefit essentially cancels your insurance policy.
If you close or downgrade your credit card, the travel insurance it offers is no longer applicable. That can be difficult to navigate in this hobby, since many of us are in the habit of closing/changing cards regularly. If you book a trip far in advance, make sure to know which card you used and to keep it open if you need the coverage to continue.
While we exalt the benefits of cards in this hobby quite often, it’s important to note their limitations. Trip insurance benefits are a great perk. However, it can’t help you if the policy is closed before your trip. Remember to keep the card open until your trip ends, if you need the benefit. Otherwise, you could do like I do and buy travel insurance, if it’s important to you to have these protections.