Travel Purchases: Earning Most vs Being Protected Most
When you book travel, the card with the best earn rate may not be the one with the best protection. How to weigh trip delay, rental and baggage cover.
When you book a flight or a hotel, the card that earns the most points isn’t always the one you want to pay with. Many cards include travel protections, such as cover for delays or rental cars, and a single claim can be worth far more than a few extra points.
The cards and numbers in this guide are illustrative, and the protections described are general. Your card’s guide to benefits is the only reliable source for what your card covers.
Two questions at checkout
- What does this card earn on travel? Check whether your card’s travel category includes airlines, hotels, rental cars, trains and travel agencies, and whether it only counts bookings made through its own travel portal.
- What does this card cover if something goes wrong? Look up its guide to benefits.
The best card for a trip is often the one with the right protection, even if another card earns a bit more.
Common travel protections
Cards vary widely. These are the main types you’ll see:
- Trip delay: reimbursement for meals and a hotel if your trip is delayed beyond a set number of hours.
- Trip cancellation or interruption: reimbursement for prepaid, non-refundable costs if you cancel or cut a trip short for a covered reason.
- Baggage delay or loss: essentials while you wait for a delayed bag, or compensation for a lost one.
- Rental car cover: cover for damage or theft of a rental car. Some cards offer primary cover; others only pay what your own insurance doesn’t.
The fine print that decides a claim
Protections usually come with conditions. Common ones are:
- You must pay with the card. Often the whole fare, or at least part of it.
- Award tickets may qualify if you pay the taxes and fees with the card, but check your card’s wording.
- Who’s covered. Some cards cover family members travelling with you; others only the cardholder.
- Covered reasons. Cancellation cover usually lists specific reasons, such as illness or severe weather.
- Claim deadlines and receipts. Keep everything.
Worked example
A traveller is booking a $900 flight. Card A earns 5% on airfares ($45) and has no travel protections. Card B earns 2% ($18) and includes trip delay cover.
The difference in rewards is $27. If the flight is delayed overnight, Card B might reimburse a hotel and meals costing $200 or more, subject to its terms. A single delay is worth several years of the extra points.
The right answer depends on how often your trips go wrong and what else covers you, such as separate travel insurance. But it’s worth weighing, not ignoring.
Travel portals versus booking direct
Some cards earn more when you book through their own travel portal. Before you do:
- Compare the price with booking direct.
- Check how changes and cancellations work. Changes made through a portal can be slower.
- Remember hotel benefits. Hotel loyalty points and elite benefits often don’t apply to stays booked through third parties.
Putting travel into your plan
In your spending plan, decide on two travel cards: one to earn on everyday travel spending, and one with the protections you want for big trips. Sometimes they’re the same card.
Common questions
Does paying award taxes with a card trigger travel insurance? Some cards say yes, some don’t. The answer is in your card’s guide to benefits.
Is credit card rental car insurance primary? On some cards it’s primary, on others secondary. Check before you decline the rental company’s cover.
Which purchases count as travel? It varies by card. Airlines and hotels are almost always included; rideshares, parking, tolls and transit vary.
Should I book through a card’s travel portal? Only if the price is the same or better and you’re comfortable with the change and cancellation process.
This guide is general education, not insurance or financial advice. Check your card’s guide to benefits before you rely on any protection.