Credit cards are no longer just a tool for making purchases; they are packed with valuable perks that can save you time, money, and provide peace of mind. Among the most attractive features that come with many credit cards are travel insurance, extended warranties, and purchase protection. These benefits are often underutilized, but they can offer significant value when you need them the most. Let’s dive deeper into these features and understand how they can benefit you.
Travel Insurance
Travel insurance is one of the most sought-after perks offered by credit cards, especially for frequent travelers. Many premium credit cards include coverage for trip cancellations, interruptions, and delays, as well as lost luggage, medical emergencies, and even trip evacuation. The best part is that you often don’t have to purchase separate insurance for your travels. As long as you pay for the travel expenses using your credit card, you may automatically be covered.
For example, if your flight gets delayed and you miss a connecting flight, travel insurance through your credit card might cover additional accommodation and transportation expenses. Similarly, in case of trip cancellations due to unforeseen circumstances, the travel insurance can reimburse non-refundable expenses.
Extended Warranties
An extended warranty is another valuable benefit provided by many credit cards, particularly for electronics and high-ticket items. When you purchase an item with your credit card, the card issuer may extend the manufacturer’s warranty on that product, sometimes doubling it. This additional coverage means you could have several more months or even years to file a claim if your product breaks down or malfunctions.
For example, if you buy a smartphone with a 1-year manufacturer’s warranty, your credit card issuer might extend the warranty for an additional year. This is especially useful for products that typically have expensive repairs or replacements.
Purchase Protection
Purchase protection is another incredible benefit of using a credit card. It can cover purchases that are damaged, stolen, or lost within a specified period after the purchase. Depending on the card and the terms of the policy, this protection can last from 30 days to several months. In case of theft, damage, or accidental loss, the credit card issuer may reimburse you for the cost or assist with a replacement.
For instance, if your laptop is stolen or damaged within 60 days of purchase, your credit card purchase protection may cover the cost of the laptop or reimburse you for the loss, provided you meet the criteria set by the card issuer.
Conclusion
Credit cards are not just a payment tool; they are packed with valuable perks like travel insurance, extended warranties, and purchase protection that can provide great value to cardholders. By understanding and leveraging these benefits, you can make the most out of your credit card. Whether you are traveling abroad, buying expensive electronics, or protecting your daily purchases, credit card perks can save you money and offer added security. Always review your card’s terms to understand the full extent of these benefits and enjoy a worry-free experience.
FAQs
Q. What is covered under travel insurance offered by credit cards?
Travel insurance benefits typically cover trip cancellations, delays, lost baggage, medical emergencies, and trip evacuation. Check with your card issuer for detailed coverage.
Q. How do I activate extended warranty coverage on my purchases?
Extended warranties are usually automatically applied when you use your credit card for the purchase. However, you may need to register the item with your card issuer to activate the extended warranty.
Q. How long does purchase protection last?
Purchase protection can last from 30 to 120 days depending on the card. Check with your credit card provider for the exact duration.
Q. Does every credit card offer these benefits?
No, not every credit card offers these perks. Typically, premium and rewards cards come with travel insurance, extended warranties, and purchase protection, but you should verify these details before using your card.
Q. How do I file a claim for purchase protection or travel insurance?
To file a claim, contact your credit card issuer’s customer service. They will guide you through the process and provide the necessary forms to submit your claim.