How credit card travel insurance works

As air travel cancellations and delays increase during the government shutdown, affected travelers will want to consider all recourse, including the credit card they used to book their flights.

US airlines began canceling flights on Friday in response to Federal Aviation Administration order Flight capacity is reduced at 40 airports. The outage could potentially affect hundreds of thousands of fliers.

“If you’re traveling in the next few weeks, you should expect there will be some chaos and possibly disruptions,” said Hayley Berg, chief economist at travel site Hopper.

The FAA estimates it operates more than 44,000 domestic flights each day. These reductions in flights at 40 airports will affect more than 268,000 airline seats and up to 1,800 flights per day, according to aviation analytics company Cirium.

About 748 U.S. flights scheduled to depart Friday, or 3%, were canceled as of mid-morning, according to Cirium. Saturday cancellations are already at 1.7%.

Traditional travel insurance may not necessarily cover the costs you incur related to that interruption, unless you have “cancel for any reason” or “interruption for any reason” benefits, experts say.

If you purchased your ticket with a credit card that has travel insurance, expenses arising from any disruption may not be covered.

“Credit card travel insurance may be helpful in some cases, but it is not a guaranteed safety net for delays and cancellations due to the FAA’s flight discounts,” WalletHub analyst Chip Lupo said in an email.

This isn’t a common benefit: Only 29% of consumer credit cards offer trip cancellation insurance, with an average coverage of $6,361, according to WalletHub. Only 18 percent come with travel delay insurance, providing an average of $445 in coverage.

The level of coverage can also vary significantly depending on the type of credit card you have.

If you used your travel credit card to book your upcoming trip, “the best cards will typically handle the most common travel disruptions, like long delays or last-minute cancellations,” Lauren McCormick, a spokeswoman for travel insurance website Squaremouth, said in an email. “However, each issuer has its own list of covered reasons and exclusions.”

Review your card’s benefits guide to understand exactly what’s included.

Experts say credit card travel insurance can often help fill in the gaps, including reimbursement for reasonable expenses if you’re delayed for an extended period of time or have non-refundable expenses like hotel stays, meals or missed prepaid activities tied to your flight.

“Credit card travel insurance can help you if you get stuck in a tight spot,” said Ted Rossman, senior industry analyst at Bankrate. “This coverage can cover the cost of a new flight on a different airline or cover hotel or meal expenses if you get stranded somewhere.”

Even so, Rossman said, “Most of the time, if the flight is canceled, it’s best to seek assistance from the airline or get a travel credit if you’re the one initiating the change.” If you file a claim with a travel insurance company, insurers usually want to know that you first contacted the airline for assistance.

“Check your card’s benefits guide before you travel and monitor airline waivers closely, as many airlines allow temporary changes and cancellations at no charge during this period,” Lupo said.

Other credit card benefits can help travelers with problems they face shutdown cuts. If you’re stranded at the airport due to a delayed flight, see if you have a credit card that offers free or discounted lounge access. To reduce airport security wait times, some cards will offset the cost of expedited screening memberships like TSA PreCheck or Clear.