3 Travel Card Perks You're Probably Forgetting
Introduction
Do you have a travel credit card? Many people do. But most cardholders miss out on amazing benefits. These perks come with your card at no extra cost. Yet research shows over 70% of cardholders never use them.
Travel cards offer more than just points. They include protection and special services. These can save you money and stress. But you need to know they exist first.
This guide reveals three forgotten perks. We will show you how to use them. You will learn to get more value from your card. Let's begin our journey to smarter travel spending.
Perk 1: Trip Cancellation Insurance
Trip cancellation insurance protects your travel plans. It covers costs if you must cancel your trip. Reasons can include illness or severe weather. Many cardholders don't know they have this coverage.
What Is Trip Cancellation Insurance?
Trip cancellation insurance reimburses prepaid expenses. These include flights, hotels, and tours. You get money back if you cancel for covered reasons. Each card has different rules. Check your card's guide for details.
Covered reasons often include:
- Sudden illness or injury
- Family emergencies
- Severe weather events
- Job loss in some cases
How to Use This Perk
Using trip cancellation insurance is simple. Follow these steps:
- Pay for your trip with your travel card
- Keep all receipts and documents
- Contact your card issuer if cancellation needed
- Submit required paperwork
- Wait for reimbursement decision
Always read your card's terms. Coverage limits vary by card. Some cards cover up to $10,000 per trip. Others may offer less. Know your limits before you travel.
Real Example: Sarah's Story
Sarah booked a beach vacation. She paid $2,500 with her travel card. Then her father had a heart attack. She needed to cancel her trip to care for him.
Sarah remembered her card's insurance. She filed a claim with documents. These included medical records and receipts. Her card company approved the claim. She got all her money back within three weeks.
Perk 2: Rental Car Insurance
Rental car insurance is another forgotten benefit. It covers damage to rental vehicles. This can save you $15-$30 per day. That adds up quickly on longer trips.
Understanding Rental Car Coverage
Most travel cards offer collision damage waiver. This covers repairs if the rental car gets damaged. It often includes theft protection too. But it usually doesn't cover liability insurance.
According to NerdWallet, rental car insurance from cards is primary or secondary. Primary coverage pays first. Secondary coverage kicks in after personal insurance.
How to Activate This Benefit
Follow these steps to use rental car insurance:
- Reserve and pay for rental with your card
- Decline the rental company's insurance
- Keep all rental documents
- Report any damage immediately
- File claim with card issuer if needed
Remember to use the card for the entire rental cost. Partial payments may void coverage. Also, some cards exclude certain vehicle types. Luxury cars and trucks might not be covered.
Statistics and Savings
The average rental car insurance costs $25 daily. A week-long trip could cost $175 extra. Using your card's coverage saves this money. CreditCards.com reports 60% of travelers pay for duplicate coverage.
Perk 3: Purchase Protection
Purchase protection covers new items you buy. It protects against theft or damage. Coverage typically lasts 90-120 days from purchase. This perk works worldwide.
What Purchase Protection Covers
Purchase protection typically includes:
- Theft of purchased items
- Accidental damage
- Fire and water damage
- Sometimes even loss
There are usually dollar limits per item. There may be annual limits too. Check your card's guide for specific numbers.
When to Use Purchase Protection
Use this benefit in these situations:
- Your new camera gets stolen while traveling
- You drop and break your smartphone
- Bought luggage gets damaged in transit
- New clothing gets ruined unexpectedly
Real Example: Mike's Experience
Mike bought a $800 laptop for his travels. He paid with his travel card. Two months later, someone stole it from his hotel room. He filed a police report immediately.
Then he contacted his card company. He submitted the police report and receipt. His claim was approved. He received a full reimbursement check.
Practical Tips Section
Now let's discuss how to maximize these perks. Follow these practical tips:
Tip 1: Know Your Benefits
Read your card's guide to benefits. You can find it online or request a copy. Keep it handy when traveling. Understanding your coverage is the first step.
Tip 2: Use the Right Card
Use your travel card for all travel purchases. This activates the protections. Consider making it your primary spending card when traveling.
Tip 3: Keep Good Records
Save all receipts and documents. Take photos of important purchases. Keep police reports if items get stolen. Good documentation makes claims easier.
Tip 4: Act Quickly
Report incidents within the required time. Most cards require immediate reporting. Delays could void your coverage.
FAQ Section
Do all travel cards offer these perks?
No, benefits vary by card. Premium cards usually offer more coverage. Always check your specific card's terms.
Are there any costs for using these benefits?
No, these perks come free with your card. You already pay for them through annual fees or interest.
How long do I have to file a claim?
Time limits vary. Typically, you have 30-90 days from the incident. Check your card's specific requirements.
Do these perks work internationally?
Yes, most travel card benefits work worldwide. They're especially valuable when traveling abroad.
Can I use multiple benefits for one incident?
Usually no. Benefits typically don't stack. You must choose one coverage type per incident.
What documentation do I need for claims?
Common requirements include receipts, police reports, medical documents, and completed claim forms. Keep everything organized.
Are there item value limits?
Yes, most benefits have per-item and annual limits. These vary by card and benefit type.
Statistics and Data
Let's examine some important numbers:
According to ValuePenguin, 71% of cardholders don't use their card's travel benefits. This means most people miss out on valuable protection.
The Points Guy research shows average travelers overspend $200 annually on duplicate insurance. They buy coverage their cards already provide.
A NerdWallet study found only 23% of cardholders understand their benefits fully. Education is clearly needed.
Credit Karma data indicates travel card benefits can save users $500+ yearly. That's significant money left on the table.
Step-by-Step Claim Guide
Filing a claim doesn't have to be complicated. Follow these general steps:
Step 1: Gather Documentation
Collect all relevant paperwork. This includes receipts, photos, reports, and your card statement showing the purchase.
Step 2: Contact Your Card Issuer
Call the benefits administrator number on your card. You can usually find this on your statement or online account.
Step 3: Complete Claim Forms
Fill out all required forms completely. Missing information can delay processing. Be thorough and accurate.
Step 4: Submit Your Claim
Send all documents to the specified address or upload online. Keep copies of everything you submit.
Step 5: Follow Up
Check on your claim status regularly. Most claims process within 2-4 weeks. Contact them if it takes longer.
Common Mistakes to Avoid
Avoid these common errors when using card benefits:
Mistake 1: Not Reading Terms
Many people assume coverage without checking specifics. Always read the fine print before relying on benefits.
Mistake 2: Missing Deadlines
Benefits have strict time limits for reporting and claims. Mark important dates to avoid missing windows.
Mistake 3: Poor Documentation
Insufficient proof can cause claim denials. Document everything thoroughly from the beginning.
Mistake 4: Using Wrong Card
Using a different card for travel purchases voids benefits. Be consistent with your travel card usage.
Conclusion
Travel card perks offer tremendous value. But they only help if you use them. The three benefits we discussed can save hundreds of dollars. They provide peace of mind during travels.
Remember to review your card's benefits guide. Understand what protections you have. Use your travel card for relevant purchases. Keep good records of everything.
Don't be among the 71% who leave money on the table. Start using these forgotten perks today. Your wallet will thank you on your next adventure.
Safe travels and smart spending!