From the Mint team: Mint may be compensated by clicking the links to offers from publishing partners (including Chase) listed in this article. Our partners do not endorse, review or approve content. A link to Mint Partners was added after the post was created. Mint Partners had no influence on the creation, direction, or focus of this article unless otherwise stated.
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2022 is the year many will try to recapture the travel experiences they lost in 2020 and 2021. More travel protection options.
If that sounds like a common situation, you may be trying to proceed a little more cautiously this time. Here are some ways to protect your finances from cancellation costs and other unforeseen circumstances. vacation expenses.
Understand our cancellation policy
When my husband and I booked our trip to Ireland in May 2020, we booked various Irish apartments and houses through Airbnb. Like many travelers these days, we had to cancel our trip when the Covid-19 pandemic hit, but the bad news didn’t end there. Unfortunately Airbnb will only refund his 100% of our money if we take it as a credit for future travel. If you want your money back on your credit card, you only get 50% of the deposit.
That experience made me read the cancellation policy more closely when I booked my next vacation. If you are planning a trip, understand how late you can cancel and still get a refund. Find out if you need to prove you’re in a Covid or other emergency to get a refund, or if you can cancel without a specific reason.
Do not take the terms of the website at face value. Read our reviews to see how easy it is to get a refund. Some companies that promise easy refunds on their website may not actually be very cooperative.
Reasons to buy travel insurance
Travel insurance can help prevent you from losing money by providing coverage if something goes wrong before or during your vacation. For example, if you break your leg the day before your departure and have to cancel your trip, travel insurance can help you get your non-refundable deposit back.
If you are already on vacation and need to see an emergency room, your travel insurance may cover your medical expenses.
Unlike most types of insurance, you buy travel insurance for each specific trip rather than as an annual or lifetime policy. The cost of travel insurance varies depending on your destination, length of trip, number of people covered, and other factors. Generally, 5% to 10% of the total cost of your trip can be spent on travel insurance.
Do your research and get quotes from multiple companies before purchasing a travel insurance plan. See what you really get with each policy, not just the price tag. It may be worth the extra cost for a more comprehensive policy.
Many travel experts agree that you only need to purchase travel insurance when you leave the country. If you are vacationing in the country, your health insurance plan should pay for emergency medical care. Using a travel credit card may cover most emergency cancellation charges. However, if you are going abroad, it is wise to take out travel insurance.
use a credit card for extra coverage
Some personal finance experts believe that you shouldn’t use credit cards because you can overspend and build a balance that you can’t pay back. However, credit cards offer better travel protection than debit cards and are a useful tool, especially if you are going abroad.
If you book your trip with a credit card, you may be able to get a partial refund of the cost if something goes wrong. However, each card has its own terms and conditions that determine the amount you receive. Most credit cards do not cover medical expenses incurred abroad. Therefore, it is often better to combine a travel credit card with travel insurance.
best travel card for protection
There are many travel credit cards on the market, but not all are created equal. If you need travel protection, here are some recommendations:
chase sapphire preferred
of chase sapphire preferred One of the most popular travel cards. Cardholders receive complimentary trip cancellation/interruption insurance up to $10,000 per person and up to $20,000 per trip. Chase also offers access to travel and emergency assistance services to help you if you encounter medical or legal issues while traveling. You may be required to pay any charges incurred.
New cardholders also get a bonus of 80,000 points after spending $4,000 in the first three months. There is an annual fee of $95. Cardholders receive a $50 statement credit each year when they spend at least $50 on hotel purchases made through the Ultimate Rewards program. No foreign transaction fees.
Chase Sapphire Reserve
Like Chase Sapphire Preferred, Chase Sapphire Reserve Includes trip cancellation and interruption coverage up to $10,000 per person and up to $20,000 per trip. New cardholders can also earn a bonus of 50,000 points after spending $4,000 in her first three months.
The annual fee is $550, but Chase also offers a $300 statement credit if you spend more than that amount on travel-related purchases. No foreign transaction fees.
Capital One Venture Rewards credit card
When booking travel with a Capital One Venture Rewards credit card, cardholders receive complimentary travel accident insurance. The card also comes with a bonus of 60,000 points after spending $3,000 in the first 3 months. The bonus is worth $600 on travel purchases.
You’ll also earn 5 miles per dollar spent on hotel and car rentals booked directly through Capital One and 2 miles per dollar spent on all other purchases.
You can book your trip directly from the Capital One Travel portal. The card has an annual fee of $95 and no foreign transaction fees.
From the Mint team: Mint may be compensated by clicking the links to offers from publishing partners (including Chase) listed in this article. Our partners do not endorse, review or approve content. A link to Mint Partners was added after the post was created. Mint Partners had no influence on the creation, direction, or focus of this article unless otherwise stated.
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