Credit card & airline/cruise line financial default

[NCP]

Many years ago, travelers were covered when they paid for their trips with a credit card in the case that the airline or the cruise line claimed bankruptcy.

I wonder that if that still applies and if there are differences depending of the issuer and type of credit card.

Any thought?

[sirwired]

That will only work if the default occurs within 30 days of the day the particular charge appears on your statement. After that point, it's the bank's discretion.

[NCP]

That will only work if the default occurs within 30 days of the day the particular charge appears on your statement. After that point, it's the bank's discretion.

 

Wow! Thank you very much.

What would you say is the best insurance carrier to cover financial insolvency of cuise lines?

[cruiseco]

Wow! Thank you very much.

What would you say is the best insurance carrier to cover financial insolvency of cuise lines?

 

I don't know that one is better than any other. But how you book your cruise can have a major effect on the coverage. For example, Allianz covers financial default of your cruise line but when you get into the plan's exclusions you find this:

 

"Specific requirements (all must apply)

 

• You purchased this insurance within 14 days of making your first trip deposit or first trip payment.

 

• The financial default happens more than seven days after your plan's effective date.

 

• The tour operator, airline or cruise line isn't the entity you purchased your plan or your travel services from"

 

So if you bought your cruise through a travel agent you're covered. If you bought your cruise directly from the cruise line you aren't.

 

Here's another example:

 

". . . other than the person, organization, agency or firm from whom You directly purchased or to whom You paid for Your Covered Trip."

 

Same thing -- if you purchased your cruise directly from the cruise line you lose the default coverage.

 

And be sure to comply with any additional requirements to get the coverage. Some plane require that you insure 100% of your trip cost to get this coverage so be careful there and some require that you buy your policy in a certain time frame -- usually 14 - 21 days from making the first payment on the trip.

[klfrodo]

Also,

For example American Airlines filed for bankruptcy protection over a year ago. As of the date they filed, all/most insurance companies will not provide financial solvency protection for flights on that airline. The insurance companies have placed this airline on their exemption list that can be found somewhere on their website.

The same would be true of any travel related company that has filed for protection be it airline, cruise line, or travel organizer, etc.