What You Need to Know About Insurance Perks from Your Credit Card
When you get a credit card, you might be looking for perks like a rewards program or a low introductory rate for a balance transfer. What you might be surprised to discover is that there are insurance perks that come with many credit cards. Here are some of the insurance perks you can expect from many credit cards:
Travel insurance
One of the most interesting perks offered by many credit cards is some form of travel insurance. You might have coverage for lost luggage or for other travel inconveniences. Make sure you book your trip with the credit card in question in order to take advantage of this insurance perk.
Another item related to travel is rental car insurance. Many credit cards offer rental car insurance so you don’t have to buy it when you get the car. You will need to waive the coverage from the rental car company, and double-check the terms and conditions of your card, but you might be protected when you get a car while you travel.
Roadside assistance
Your auto insurance policy might not adequately cover roadside assistance, such as getting a tow. However, your credit card might help you out. If you want access to roadside assistance, find out if your card benefits cover it. You might be able to save money just from the insurance perks offered by your credit card.
Purchase protection
If you’re looking for insurance against faulty merchandise or rising prices, you might get some help from your credit card. Some credit cards offer purchase protection, which is basically insurance for your shopping experiences. If an item goes down in price within a short period of time, your credit card might refund the difference. You might also get help from your credit card issuer if an item you bought is damaged or stolen.
In order to take advantage of this perk, though, you need to keep the evidence. You need copies of the receipts involved. Also, realize that there might be a cap on how much protection you receive in a calendar year. Pay attention so you aren’t caught by surprise.
Read your terms and conditions
Insurance perks can be a great part of your credit card experience. However, you need to read your credit card agreement so make sure you understand what’s offered in terms of benefits. Not all cards offer the same perks. You should also read up on how to take advantage of your perks. There might be time limits for you to file a claim, caps on how much you can ask for, as well as requirements to send in receipts or other proofs of purchase.
As long as you read your benefits and understand what to expect, you can save some money by taking advantage of credit card insurance perks.