The new automatic airline refund rules have been implemented - this is what is included.

The new rules from the U.S. Department of Transportation mandating automatic refunds for significantly delayed or canceled flights are now in effect, just in time for the holiday travel season. These changes provide clarity and should make it easier to receive refunds for flight cancellations and significant delays.

To ensure full coverage while traveling, you can either purchase supplemental travel insurance or use a travel credit card with built-in insurance benefits. It's important to understand the new rules and how they will affect your coverage.

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When airlines owe you a refund

The new rules simplify the process of obtaining a refund from airlines by mandating that they automatically provide prompt cash refunds within seven business days for credit card purchases and 20 calendar days for other forms of payment. You will receive the full amount you paid, minus any portion of the travel you have already utilized. The refund must be given in cash or returned to the original form of payment (credit card, miles, etc.).

If the airline offers alternative transportation options or travel credits and you do not accept them, you are entitled to an automatic refund.

• Your flight is canceled
• Your domestic flight is delayed by three hours or more
• Your international flight is delayed by six hours or more
• Your departure or arrival airport changes
• The number of connections increases
• Your cabin class has been downgraded
• Your disability may find a change in aircraft or connecting airport "less accessible or accommodating."

If you pay for additional services such as inflight Wi-Fi or seat selection and the airline fails to provide the service, you are entitled to a refund. Additionally, checked bag fees are refundable when your baggage is delayed.

• 12 or more hours for a domestic flight
• The duration of an international flight can range from 15 to 30 hours, based on the length of the journey.

When airlines don't owe you a refund

If your flight delay doesn't meet the new guidelines for significant delays and is considered uncontrollable, the airline is not obligated to provide you with a refund in the U.S. You will generally not be eligible for a refund if the delay was due to unsatisfactory service or was caused by factors beyond the airline's control.

• Personal reasons (sickness, late for your flight, etc.)
• Weather or natural disasters
• Air traffic
• Safety or security issues

If your flight is delayed or cancelled, airlines may not reimburse you for incidental expenses, such as meals and lodging. However, they may offer meal or hotel vouchers or reimburse you for additional expenses, depending on the situation and airline. Therefore, it's important to contact the airline as soon as possible to inquire about compensation.

Credit cards that cover you when the airline doesn't

If you use the correct credit card to pay for your flight, you will receive various benefits, including protection for your luggage and trip cancellations.

It is important to carefully read the fine print of your credit card's insurance coverage, which usually applies when you pay for a trip with the card or its rewards. Some of the travel insurance benefits you can obtain with the right credit card include:

• Trip cancellation/interruption insurance
• Baggage delay insurance
• Lost luggage reimbursement
• Travel accident insurance
• Travel and emergency assistance

The Chase Sapphire Preferred® Card is a highly sought-after travel credit card with a low annual fee of under $100 and impressive rewards. Additionally, it provides all of the above travel protections. The trip delay reimbursement applies to delays of 12 hours or more, including those caused by bad weather, and you will be reimbursed for reasonable expenses up to $500 per ticket.

Capital One Venture X Rewards Credit Card offers stronger insurance perks and enhanced versions of coverages compared to less expensive rewards credit cards. For instance, the Venture X provides trip delay coverage that reimburses reasonable expenses up to $500 per ticket, but it only requires a delay of 6+ hours (or an overnight stay).

Travel insurance that covers what the airline doesn't

If your credit card doesn't provide the travel protections you need, you can obtain the coverage you require with a travel insurance plan. Some travel insurance plans offer additional coverage beyond what a typical credit card provides. For instance, World Nomads offers plans that cover baggage, delays, cancellations, and interruptions, as well as provide benefits for pet boarding, missed connections, and travel inconveniences.

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