Most people are aware of the advertised benefits that come with their credit card, the miles or points that accumulate with each purchase, but few people are aware of the additional benefits that come with using your credit card. The Huffington Post broke down some of the beneifts from owning some plastic.
Rental Car-Collision Coverage
This is the one most people are aware of, though many still aren't. It is the most important travel benefit that comes with your credit card. If you rent a car with your credit card, and the car is damaged during the rental period, the card will cover any damage that isn't covered by your regular insurance. This also allows you to decline the over priced insurance offered by all rental car companies, which can cost as much as $30 per day on top of the rental price. All American Express, Diners Club and Visa cards offer this coverage, as well as most Discover cards and many Master Cards. The coverage is usually secondary to your regular car insurance, though Diners Club and some MasterCard and Visa cards do offer primary coverage, meaning you don't have to file a claim on your insurance. American Express offers primary coverage for an additional fee.
Common-Carrier Lost Baggage
If you buy an airline, bus, rail, or other "common carrier" ticket with your card and then check your bags, Visa premium cards, most American Express cards, and many others cover your baggage if it is permanently lost, stolen, or damaged. The card coverage is usually secondary, as with the rental car coverage, meaning that you must first make a claim with the carrier. The coverage limits vary from an average of $3,000 or the card may provide coverage of a claim that exceeds the carrier's maximum limit. Some cards also cover carry-on as well as checked baggage. The one catch is that the payout on most claims will only cover the depreciated value of the items lost or damaged, not the replacement value. It is often difficult to come up with $3,000 worth of depreciated value for what's in your bags.
Trip Delay/Baggage Delay
Some premium cards offer a modest amount of coverage towards meals and accommodations if your trip gets delayed. The coverage usually kicks in after a specified amount of time, typically at least 18 hours after the delay. Reimbursement may be net after what you can first receive in coverage from your carrier.
Roadside Assistance
Visa premium cards, most American Express cards, and many others offer a smaller version of the type of roadside assistance provided by AAA. It will cover you if you run out of gas, get a flat tire or have a dead battery. However, if you're driving a rental car, call the rental company first.
Accident Insurance
Many credit cards provide up to $500,000 for "accidental death and dismemberment" (ADD) insurance for travel on any common carrier.
Trip Cancellation/Interruption Insurance
Credit cards provide a low-value trip cancellation/interruption (TCI) benefit. It is similar to regular TCI, though the dollar limit is low. Only a few premium cards, such as Capital One World MasterCard, Chase Sapphire and several premium Citi cards provide this benefit. Many cards will sell a conventional TCI policy for an additional fee.
Referral Services
Many credit card companies provide referrals to legal and medical services wherever you are. They also help with local replacement if the card is lost while you are traveling.
This article is copyrighted by Travelers Today, the travel news leader
