Credit Cards are something that most of the individuals consider only for spending money. However, if used properly, credit cards can help you to generate substantial saving by using reward points. That’s not the only benefit, there are many other benefits that you can avail and claim by using your credit card appropriately.
These days, most of the credit cards including those zero rental (annual fees) cards are available with numerous hidden facts and feature that can help you to save your precious money.
Among all those lesser known or hidden benefits, the following insurance benefits are usually least availed. Here I will explain you some of the amazing insurance benefits associated with your credit card, using which you can save sufficient amount of your precious money.
#1 Cell Phone Replacement Coverage
In this modern generation, every cell phone launched in the market is usually more costly than its predecessor ones. Thus, if your cell phone will get damaged or stolen it will probably affect you financially.
There are certain credit card available that can offer you cellphone replacement coverage to ensure safety of your cellphone every time/month you pay your mobile bill with eligible credit card.
Obviously, there are certain limitations and restrictions associated with these insurance coverages, such as limited claims per year, a deductible amount, no stolen cell phone coverage, maximum cap on the coverage etc.
However, these restrictions or limitations will not affect your savings much and you will be able to buy a new cell phone for you in case your old cell phone gets damaged or stolen.
#2 Hotel Insurance
Travelling is considered as an effective way to relax and no one really wants to face any problem during their vacations. However, sometimes unexpected thing happens and people has to face some problems and difficulties. There are certain credit card providers available that offer hotel insurance coverages. Hotel insurance ensures the safety of your property in hotel rooms. Hotel insurance is applicable only for the complete stay duration paid for the room using eligible credit card.
However, some of the credit card providers limit their offer only to domestic hotels, while other card providers allow you to claim this insurance at any International locations as well.
#3 Baggage Insurance
Airline Baggage Tracking Technology (ABTT) is considered as one of the best tracking service technology, however still individuals face problems sometimes like baggage damage, baggage misplacing etc. There are certain credit card providers that compensate for such lost and damaged baggages. However, to claim this insurance offer it’s necessary to buy the airline ticket using an eligible credit card.
#4 Travel Accident Insurance
Insurance is the best possible way to deal with and overcome worst situations and problems and best thing is that possibly you can get compensation for accidents that can probably take place during your vacations or travels. There are numerous credit card providers that are offering travel accident insurance to their card holders. However, to claim this insurance offer it’s mandatory to purchase or book the trip or airline ticket using eligible credit card. This insurance offer is available with huge limitations that vary with the card holders and their locations. Thus, it’s necessary for card holders to have better comprehensive disability and the life insurance policies in the place.
#6 Trip Cancellation Insurance
Life is completely unpredictable and sometimes an emergency or illness can probably force you to cancel your planned trip that you have paid for one or two months before. There are certain financial loss associated with these sudden cancellations. However, if you are having a card with trip cancellation insurance offer, probably you can save your money completely or partially by avoiding the cancellation charges. Off Course, to avail or claim this insurance offer, it’s mandatory to book your entire trip with the eligible credit card.
However, this benefit has certain limitations including the meaning of word “emergency” that varies with every card provider and also the cap on the claimable net amount.
#7 Automobile Rental Insurance
It’s one of the common insurance benefits that credit card providers are offering these days. Basically, it’s a key feature with great benefits offered to the prospective applicant applying for a credit card with travel benefits. Usually, Rented cars are available with an option to purchase separate insurance, if you will go with this separate Insurance option you will not be able to use your cards insurance offer. In other words, rental car insurance benefits associated with your credit card vanish the time you purchase a separate insurance. However, separate insurances are usually costly as compared to complimentary rent car insurance available with your credit card.
Important Things That You Must Remember When Availing These Complementary Insurance Benefits
There are many limitations, terms and conditions are associated with every insurance product. All these associated terms and conditions must be satisfied otherwise you will not be eligible to receive payouts from the insurer. Terms and Conditions include several terms and definitions that varies with one to another insurer, like the definition or meaning of “emergency”.
Following are some of the facts that you must remember and consider about the complimentary Insurance Benefits:
- The complimentary Insurance provider and your credit card provider are not same. They both are different. All the insurance benefits available with your credit card are underwritten by a different entity that will be handing your claims with the credit card provider acting as an intermediary.
- Reimbursement payout takes some time, so don’t rush and have patience.
- Ensure that you are aware of every term and conditions associated with the policy before you avail that.
- All the important and necessary documents needed by your card provider or issuer for raising the claim will include loss proof, injury or damage description, loss extent and type, payment proof etc.
The above insurance benefits will surely help you to save satisfactory amount of money. However, practically it will not be great to compare these insurance benefits with the benefits that comprehensive health or life insurance provides. But as you know ” saving is earning, whether it’s 1 billion or 1 penny”.