The last few years have been pretty crazy in regards to some ultra low cost carriers. So crazy in fact that a few of them went out of business, including: WOW, Thomas Cook, and Primera Air. It’s no wonder than, why there is a pretty big change to travel securities on the big credit cards
On the tail end of news surrounding the Chase Sapphire Reserve’s increased annual fee, we are just finding out a not so obvious change that does not look good. Even worse, it looks like this change is coming through on every Chase card, and not just the Sapphire Reserve.
The change is that if you book a flight, and that airline goes bankrupt, you may be completely out of luck, and Chase will no longer cover this under the travel protections under any of its cards.
I actually think this a pretty huge deal, so it seems odd to me that it wasn’t formally announced. My guess is that with the benefit disappearing on a few credit cards at the same time, it doesn’t have much to do with the Sapphire Reserve changes, but more of a systemwide change fueled by the insurance company the Chase uses for these kind of things. I’m sure having to pay out for Thomas Cook and WOW airline tickets probably wasn’t that cheap, so it looks like they increased the price to Chase.
Unfortunately, it doesn’t even look like the competition offers this benefit either, so we may be out of luck for a benefit like this. My best advice at this point would either be to book reliable airlines, if it’s too good to be true, it may very well be. Secondly, if you absolutely have to book a cheap ticket, try to see if their own insurance policy covers Financial Insolvency. Finally, the last option could be to not make any sort of plans until less than 120 before the trip itself. This is because Visa will let you charge back up to 120 days which could save you in this sort of event.
Have you been denied a claim on financial insolvency? Let us know your experience in the comment section below.