Does My Credit Card Cover Cancellations Due to War or Military Action?
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"Reader Questions" are answered twice a week by TPG Senior Points & Miles Contributor Ethan Steinberg.
After a tense couple of days that saw Pakistan shut down its airspace during an escalating conflict with India, the situation has slowly improved, and Pakistani airspace is once again open to commercial flights. Unfortunately, many people who had travel plans last week saw their flights cancelled or diverted, and TPG reader Hasham wants to know if his credit card's travel insurance policy would cover him for an upcoming trip to the region.
[pullquote source="TPG READER HASHAM"]I have a flight booked from the US to Pakistan in a few weeks. Do airlines cancel tickets and provide refunds if they can't fly to a country due to war or war-like situations like what's going on between India and Pakistan? What about travel insurance?[/pullquote]
Let's start with the easiest part of Hasham's question: whether travel insurance would cover him in the event of a cancellation. While he didn't specify which card he used to book, let's assume he picked a card with a comprehensive travel insurance policy like the Chase Sapphire Reserve or The Platinum Card® from American Express. While the Sapphire Reserve is widely considered to be the best card for travel insurance, Chase explicitly identifies both declared and undeclared wars as events that are not covered.
The Amex Platinum might be a better choice for booking flights due to its 5x bonus category on airfare purchased directly with the airline. However, it doesn't provide any coverage for trip delays or cancellations.
As far as third-party travel insurance goes, there's no way to know for sure, as different policies contain different provisions for what is (and is not) covered. If you've purchased additional travel insurance, you'd need to read the fine print to see if wars would be considered a covered event.
The first part of Hasham's question is a little tougher to answer, as it varies heavily case by case. Military engagement between two countries (or non-state actors) can take a number of different forms, and not all of them warrant the closure of airspace and the cancellation of flights. In this case, the conflict between India and Pakistan included a number of military aircraft being shot down, so it was easy to err on the side of caution and keep commercial aircraft away from this area.
As another example, despite the political unrest and violence in Venezuela, American Airlines is still operating commercial flights from Miami to Caracas, even after US diplomats were ordered to leave the country (a demand that has since been retracted). If the airline were to cancel the flight you could expect some form of refund, either in the form of cash or a travel voucher to use towards a future trip, but it's impossible to predict how any airline might choose to handle a given conflict situation.
If a carrier is unable to get you to your destination in a timely manner for any reason, it should make every effort to reroute you. If your flight is ultimately cancelled and the airline is unable to accommodate you, you should be entitled to a refund, as you didn't receive the transportation for which you paid. However, in an ever-evolving situation like tensions between two countries, there's no way to definitively know how an airline would handle it in advance.
Bottom Line
India and Pakistan have (thankfully) been able to de-escalate the recent conflict without progressing to an all-out war. While commercial flights have resumed to and over the affected areas, there's no way to know whether this will hold. Hopefully Hasham's flights will remain unaffected, but if they are, the carrier should do what it can to accommodate him.
This incident serves as an important reminder: In the event of war, military engagement or terrorist attacks, don't expect your credit card's travel insurance to cover you if your flights are cancelled or delayed. If you're traveling to an area that's especially prone to violence or instability, this might be a good time to consider buying supplementary insurance to specifically address these possibilities, though again, you'd want to read the policy carefully to ensure you're covered.
Thanks for the question, Hasham, and if you're a TPG reader who'd like us to answer a question of your own, tweet us at @thepointsguy, message us on Facebook or email us at info@thepointsguy.com.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
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$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.