TPG reader credit card question: Are authorized users covered by credit card travel insurance?
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Editor’s note: This is a recurring post, regularly updated with new information.
I generally divide my credit card perks into two categories: those such as annual statement credits or lounge access that I actively try and use to enhance my travel experience and those like travel insurance and purchase protection that I hope to never need, but appreciate being able to count on when I do. TPG reader Adam wants to know who exactly is covered by his card’s travel insurance policy …
If I add an authorized user on my Chase Sapphire Reserve, will they be covered by the same travel insurance policy that I am?TPG READER ADAM
For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.
There are plenty of good reasons to add someone as an authorized user to your card, including sharing benefits with them, earning points on their spending, and even helping your family members build credit, though remember that you’ll ultimately be responsible for any purchases they make on the card. Many cards will let you add authorized users for free, but premium cards often charge a fee. In the case of the Chase Sapphire Reserve, it’s $75 per year to add an authorized user.
I also really like this question is because it’s important to understand the terms of your insurance coverage before you need to use it, so you don’t make any hasty and expensive mistakes based on incomplete information. As a reminder, the Chase Sapphire Reserve offers the following travel insurance benefits:
- Trip cancellation/trip interruption insurance
- Trip delay reimbursement
- Baggage delay insurance
- Lost luggage reimbursement
The exact coverage requirements differ slightly for each policy, but taking the trip cancellation and interruption insurance as an example, here are the covered parties according to Chase’s website:
Now there’s no differentiation here between primary cardholders and authorized users, so I called Chase and spoke to a benefits administrator to confirm. Good news Adam, not only are authorized users covered but in this case, their immediate family members would be as well. “Cardholder” doesn’t just mean the primary account holder, it means any user who’s name is embossed on the Chase Sapphire Reserve credit card.
Here are the covered parties for the trip delay reimbursement:
If you add an authorized user outside of your own family, they would receive coverage for their spouse or domestic partner and dependent children under the age of 22, giving them access to some of the most valuable benefits on the Sapphire Reserve at a fraction of the cost.
Some people balk at paying the $75 a year fee to add authorized users on the Sapphire Reserve, but when you think about the fact that they earn full travel insurance coverage as if they were the primary cardholders, this becomes a much better value proposition. This benefit has saved me hundreds of dollars over the years, and Chase is known to offer some of the most comprehensive and generous coverage in the industry on its Chase Sapphire Preferred Card and Reserve cards.
Featured photo by encrier/Getty Images.
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,650
CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
- Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
- Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
- Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.