What are the hidden benefits of your credit cards for insurance?

Among the benefits or advantages that you could obtain when using credit cards, we could find the following:

  • shopping insurance
  • Extended Warranties
  • price protection
  • luggage protection
  • mobile phone insurance
  • Free checked baggage
  • Guaranteed returns
  • accident travel insurance
  • Access to the airport VIP lounge
  • Rental Vehicle Damage Waiver
  • Trip cancellation or interruption insurance

Let’s look at some credit card benefits in detail.

  1. Shopping Insurance

Are you a lover of online shopping? Well, you’ll be glad to know that many credit cards offer purchase insurance. How does it work? If you purchase a product that arrives damaged, deteriorated, used or simply lost or stolen, then the issuer will refund the money or request the replacement of the item. This insurance also works if, for example, you ordered a new microwave or LCD TV with your credit card and you accidentally drop it while you’re installing it.

Purchase insurance coverage varies depending on the card. To find out what your insurance covers, check the benefits directly at the bank or in your affiliation contract.

  1. Extended Warranties

Every product or electronic device has a manufacturer’s warranty, right? However, this period (which is at least one year) can easily reach 5 years or, in some cases, up to 10 years. If you buy that product with your credit card, this guarantee could be extended for one year or more than what was established in the original terms of the guarantee.

Suppose you buy a laptop with your credit card. If the product is eligible and meets the issuer’s conditions, then the warranty could exceed the manufacturer’s warranty by 24 months. This coverage is valid for both repairs and the cost of replacing the product. Therefore, you could get the money it costs to repair it, a new laptop – if yours breaks during that period – or the full amount you paid for the product.

  1. Price Protection

This protection is no longer enabled on all cards (because it has fallen into disuse) but some of them still offer it.

What is it about? Of a benefit for the consumer that operates if the price of the product that he purchased fell in price. How does it work? In the following way. Imagine you bought a new computer for $1,000, but suddenly the price plummeted to $700. In this case, you can make a claim to the bank and, if valid, you would receive a refund for the difference.

This protection operates even if the store that lowered its prices is different from where you purchased the good. Of course: you must take into account that credit card issuers condition the price drop. The claim can generally be filed within 100 days of purchase and covers any price changes that have occurred within that period.

  1. Luggage Protection

If your baggage is temporarily or permanently lost and you paid for the check-in, or the plane ticket, with your card, the issuer will reimburse you for any expenses you may incur due to the delay. The maximum reimbursement limit is up to $100 per day and will operate until the company finds and returns your luggage.

If the luggage never shows up, the issuer will reimburse you for the value of everything you had in it. When credit cards are high-end, they not only protect the cardholder’s luggage, but also those of their family members, even if they are not traveling with them.

  1. Mobile phone insurance

If you buy your next mobile phone with your credit card, you could get insurance against loss, theft or loss. This scenario could also apply to those who pay for their mobile plans with their card. Of course: the bank or issuer could condition the insurance. There are banks that not only require you to buy the mobile with your card, but also that the phone plans are affiliated with it.

Some policies may also include deductibles, such as $100, and a maximum limit on the amount of the claim, usually set at $600 or less. Generally, the number of claims a consumer can make in a 12-month period may also be limited.

  1. Free checked baggage

It doesn’t happen with all of them, but many credit cards (especially those that offer rewards and frequent flyer miles) offer the consumer the opportunity to cover the cost of checked bags, as long as the trip is paid for with the card. Some cards will even cover the cost of checked baggage for the cardholder’s fellow travelers.

  1. Guaranteed returns

You may already be imagining it, but a guaranteed return is nothing more than a refund of money to the consumer. In what cases does it work? If you bought an item in a store and need to exchange it for another, but the store never made the withdrawal. The details of this benefit vary from card to card, but most of them allow the claim for 90 days after the purchase and have a maximum limit of $300 per product or up to $1,000 per year.

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