New automatic airline refund rules are now in effect — here's what's covered

The U.S. Department of Transportation's new rules mandating automatic refunds for significantly delayed or canceled flights are in effect just in time for the holiday travel season. While these changes don't significantly change what you're entitled to, they provide clarity and should make it easier to receive refunds for flight cancellations and significant delays.

It can still make sense to have supplemental travel insurance or pay with a travel credit card with built-in insurance benefits to ensure you're fully covered. Here's what you need to know about the new rules and how you'll be impacted.

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The new rules make it easier for you to get your money back because they require airlines to automatically provide prompt cash refunds when you're entitled to one. The new guidelines strictly define prompt as seven business days for credit card purchases and 20 calendar days if you used any other form of payment. You'll receive the full amount you paid minus any portion of the travel you've already used. The refund must be in cash or made to the original form of payment (credit card, miles, etc.).

You're entitled to an automatic refund if you don't accept alternative transportation options offered by the airline or travel credits when one of the following happens:

• 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
• A change in aircraft or connecting airport is "less accessible or accommodating" to your disability

You're also entitled to a refund if you pay for an additional service such as inflight Wi-Fi or seat selection, and the airline fails to provide the service. Checked bag fees are refundable when your baggage is delayed by:

• 12 or more hours for a domestic flight
• 15 to 30 hours for an international flight (depending on the length of the flight)

If you purchased a non-refundable ticket and your flight delay doesn't qualify as "significant" under the new guidelines, the airline isn't required to provide you with a refund. In the U.S., airlines also aren't required to refund you for delays that are considered uncontrollable. You typically won't be eligible for a refund for unsatisfactory service or delays caused by:

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

Airlines aren't required to reimburse you for incidental expenses you incur because of a delay, such as meals and lodging. However, depending on the situation and the airline, they may provide meal or hotel vouchers or reimburse you for additional expenses you incur. So be sure to reach out to the airline as soon as possible if you're flight is delayed or cancelled.

Credit cards that cover you when the airline doesn't

When you pay for your flight with the right credit card, you'll be covered by a range of benefits for everything from issues with your luggage to trip cancellations.

The details of each type of coverage vary, so it's important to read the fine print of your benefits carefully. That said, you'll usually qualify for your credit card's insurance coverage when you pay for a trip with the card and/or its rewards. Here are some different types of travel insurance benefits you can get with the right credit card:

• Trip delay reimbursement
• Trip cancellation/interruption insurance
• Baggage delay insurance
• Lost luggage reimbursement
• Travel accident insurance
• Rental car collision coverage
• Travel and emergency assistance
• Roadside dispatch

The Chase Sapphire Preferred® Card (see rates and fees) is a popular travel credit card with a sub-$100 annual fee and valuable rewards. Plus, it offers all of the above travel protections. Its trip delay reimbursement applies to delays of 12+ hours or if you need to stay overnight, including weather-related delays, and you'll be reimbursed for reasonable expenses (lodging, food, toiletries, etc.) up to $500 per ticket.

Premium credit cards, like the Capital One Venture X Rewards Credit Card, typically have a stronger list of insurance perks and enhanced versions of the coverages available with less expensive rewards credit cards. For example, the Venture X has trip delay coverage that will reimburse 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 offer the travel protections you want, you can get the coverage you need with a good travel insurance plan. With some travel insurance plans you'll have access to coverage above and beyond what the typical travel card offers. World Nomads offers plans with coverage for baggage, delays, cancellations and interruptions and also provides benefits for pet boarding, missed connections and travel inconveniences.

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*For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply