I generally divide my credit card perks into two categories: annual statement credits and lounge access, which I actively try to use to enhance my travel experience, and travel insurance and purchase protection, which I hope to never need but appreciate being able to count on when I do.
But if you’re an authorized user on a credit card, are you covered by an issuer’s travel insurance policies?
Benefits for authorized users
There are plenty of good reasons to add someone as an authorized user to your card. You can share benefits with them, such as travel credits or monthly statement credits like the up to $7 monthly Dunkin’ statement credit (on U.S. Dunkin’ purchases up to $84 per calendar year; enrollment required) on the American Express® Gold Card.
Authorized users also earn points on their spending. Being an authorized user can even help someone build credit, though remember that you’ll ultimately be responsible for any purchases they make on the card.
Many cards allow you to add authorized users for free, but premium cards often charge a fee. For example, the Chase Sapphire Reserve® (see rates and fees) charges $75 per year to add an authorized user.
Authorized users and travel insurance
You need to understand the terms of your insurance coverage so you don’t make any hasty and expensive mistakes based on incomplete information. Common travel insurance benefits on Chase cards include:
The exact coverage requirements differ slightly for each policy, but taking trip cancellation and interruption insurance as an example, Chase lists those covered as ‘Covered Travelers’ to a domestic partner and family members, according to the terms and conditions.
Furthermore, to be covered by the card’s insurance, you must charge all or a portion of the trip cost to your card or have used Chase Ultimate Rewards points. Covered Travelers do not need to be traveling with the cardholder for benefits to apply.
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There’s no differentiation between primary cardholders and authorized users, so I called Chase and spoke to a benefits administrator to confirm. The good news is that 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 whose name is embossed on the Chase Sapphire Reserve credit card.
For trip delay reimbursement, as another example, the coverage of family is similarly defined as above:
To be eligible for this trip delay reimbursement coverage, all or a portion of your trip must’ve been booked using your Chase Sapphire Reserve card, including travel booked using Chase Ultimate Rewards points.
Related: Should my partner get their own card or be added as an authorized user?
Bottom line
Some people balk at paying the $75-a-year fee to add authorized users to the Chase Sapphire Reserve, but when you consider 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. Chase is known to offer some of the most comprehensive and generous coverage in the industry, especially on cards like the Chase Sapphire Preferred® Card (see rates and fees) and Sapphire Reserve.
Related: How my Chase Sapphire Preferred saved me nearly $250 on a canceled trip
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