Can credit card insurance save you from a Southwest-style meltdown?

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Credit card travel insurance can cover you even if your airline doesn’t.

Southwest Airlines experienced a high-profile meltdown during the holiday season. In just one week, we had to cancel over 15,000 flights. Many travelers find themselves stranded for days, paying hefty extras for hotels, meals, alternative transportation, etc., trying to reach their destination.

The airline has said it will honor reasonable reimbursement requests for such types of expenses.It is also offering 25,000 Rapid Rewards points to customers affected by travel disruptions. I hope everyone affected will be reimbursed without issue. There may be delays and disputes about what constitutes a “reasonable” cost.

Many credit cards advertise that they offer free travel insurance. You may wonder if it helps in this situation, especially if you’re one of her affected Southwest travelers. Luckily, if your credit card has travel insurance, you can get your money back that way.

How credit card insurance protects you from flight problems

There are some credit card travel protections that can be applied for flight issues. they are:

• Travel delay refund: We will reimburse you up to the maximum amount for reasonable expenses incurred in the event of travel delay. To be eligible, the delay usually must be at least 12 hours or stay overnight.
• Trip cancellation and interruption insurance: If your trip is canceled or shortened, we will refund your eligible travel expenses up to the maximum amount.
• Baggage insurance: We offer refunds for baggage issues up to the maximum amount. Depending on your policy, you may be compensated for delayed, damaged and/or lost packages.

Exact protection depends on your credit card. Some credit cards offer all three of these protections. Others offer less or none at all. Terms and coverage limits also vary by card and its policies. For example, some cards offer up to $500 in travel delay reimbursement, while others offer $300.

You can learn all about the protection your card offers in our perks guide. Or, if you’re looking for a new credit card and want a card with specific travel protection, you can find this information on the card’s web page.

Rules vary by card, but there are some rules that apply to most credit cards.

• To apply for travel insurance, you must pay for your trip with a credit card. For example, if your credit card offers travel delay insurance and lost luggage insurance, you must pay for airfare with that card in order to receive those benefits.
• Coverage is usually secondary. That is, it applies to extra costs after all other refunds have been exhausted. For example, if you have a reasonable cost of $1,000, Southwest will only reimburse you $700. If you also have credit card coverage, the remaining $300 will be refunded.
• Documents are required to claim. Be sure to keep all receipts and records of travel issues experienced.

How to use credit card travel protection

If the Southwest Airlines issue has cost you extra, or if you want to be prepared for the next airline meltdown, here’s what you need to do.

Request a refund from the carrier first

For Southwest, you can find all the information you need for this on our Suspended Holiday Travel page. If you have other travel insurance, you will need to make a claim with that company as well.

We recommend waiting for a response before submitting a credit card insurance claim. Please note that files must be submitted within a specific period of time for the incident, often 60 days. If your carrier is slow to respond or you don’t want a refund, please file a credit card insurance claim in time.

Then submit the claim to your credit card rewards administrator.

For billing information, please refer to your card benefits guide or call the number on the back of your card. Most card issuers allow you to apply online or over the phone.

During the claim process, you will be required to submit supporting documentation. If you have an eligible claim, you will be entitled to a refund.

The Southwest Airlines holiday flight issue is a great example of why it’s always good to have travel insurance. Many people don’t want to pay extra every time they buy insurance, so credit card insurance is a smart way to get coverage at no extra cost. If you don’t have a card with these protections, look into travel credit cards that can protect you every time you travel.