Credit cards are more than just tools for making payments; they come with several hidden benefits, including insurance perks. Many people are unaware that their credit cards offer various types of insurance coverage that can save money and provide peace of mind. In this article, we will explore how insurance and credit card perks are connected and how you can take advantage of them.
Types of Insurance Offered by Credit Cards
Travel InsuranceMany credit cards provide travel insurance, covering trip cancellations, lost luggage, and emergency medical expenses. This benefit can save you from purchasing separate travel insurance policies.
Purchase ProtectionIf you buy an item with your credit card and it gets damaged or stolen within a certain period, purchase protection ensures you receive a refund or replacement.
Extended WarrantySome credit cards extend the warranty of purchased items, providing additional coverage beyond the manufacturer’s warranty.
Rental Car InsuranceIf you rent a car using your credit card, you may receive collision damage coverage, saving you from buying costly rental car insurance.
Fraud ProtectionCredit cards come with built-in fraud protection, ensuring that unauthorized transactions are reimbursed without affecting your finances.
How to Maximize Credit Card Insurance Benefits
Read the Terms & Conditions – Each credit card has different insurance benefits, so it is essential to understand what is covered.
Use the Right Card for Purchases – If you want to take advantage of purchase protection or extended warranties, use a card that offers these benefits.
Keep Documentation – Save your receipts and any relevant paperwork in case you need to file a claim.
Check Coverage Limits – Some insurance perks have limits on claims, so be aware of the maximum coverage available.
