9/30/2022
Credit cards are highly sought after products in the US for various reasons, especially the benefits they offer to cardholders. Although this depends on the type of plastic that the bank grants you, even the simplest instruments offer you some type of protection.
Depending on whether you have accurate information about the insurance included in the credit card, we will expand the topic further.
What are the most common insurances for credit cards?
Like the benefits that come with these banking products, insurance associated with credit cards is a relatively broad category. This is because the entities want to prevent you from wasting time contracting policies to gain your trust.
The contradictory thing about this advantage is that many people ignore the protections available to them.
- Annuity: $ 0
- Credit limit: $ 150
- APR: 17.49%
- Annuity: $ 0
- Credit limit: Ask
- APR: 19.49%
- Annuity: $ 0
- Credit limit: Ask
- APR: 22.49%
- Annuity: Ask
- Credit limit: Ask
- APR: 20.24%
- Annuity: Ask
- Credit limit: Ask
In general, a premium card can offer you up to 14 insurance policies and, in the worst case, a minimum of 2. In order to clarify the matter, we can summarize the different policies in 4 main categories:
Shopping insurance
It is one of the most popular categories because it can save you money, avoid bad times and you have greater security when buying anywhere in the world. Here you will find services such as:
Price protection. This coverage reimburses you for the difference in value of an item if you can prove that after the purchase someone else offers it cheaper. There is a lifetime or annual claim limit, perishable products are excluded and you have a certain time to request a refund.- Extended warranty. It is a very attractive benefit because the credit card can extend the term of the guarantee for up to 2 years, once the manufacturer's protection expires. The detail is that, to obtain a full year, the brand must offer you that same duration.
- Purchase protection. This type of policy protects what you buy in case the merchandise is damaged, lost or stolen. It usually has a validity of 90 to 180 days in relation to the type of credit card and once you cancel the entire amount.
Trips policy
Another item widely promoted by banks, a credit card can help you with:
- Flight delay. When the plane takes a long time to leave, after a certain time you are entitled to coverage that includes food, lodging and other personal items for your comfort. It is usually an amount of $500 or up to $2,000 USD annually and can be transferred to lost or delayed baggage.
- Trip interruption. It is a common protection that allows you to return home in the middle of a trip for an emergency approved by the company that issued the plastic. There is a maximum amount that you can use to pay yourself back as soon as possible.
May interest you: Usual credit card fees
Theft or loss coverage
No one is oblivious to losing some things or being robbed at any given time. For this reason, credit cards offer coverage for:
- Hotel robbery. This type of protection only applies when you suffer the subtraction of your belongings while outside your hotel room.
- Theft of the rented vehicle. It is a standard coverage that allows you to reject the offer of CDW/LDW insurance that is always offered by the rental company. The only detail is that, if something happens, you must respond with your money first and wait for compensation from the insurer.
- Theft of belongings from the rented car. Very similar to protection outside the hotel, with this policy you are covered in the event that any of your belongings is damaged or someone steals any of your property from the rental car.
Emergencies or accidents insurance
Unexpected events are circumstances that we cannot foresee, and many did not have the proper health coverage to cover the possible expenses involved. That is why many credit cards give you protections such as:
- Medical emergency. In this case, we are talking about coverage related to an injury or illness that may occur during a trip and that takes care of the medical expenses that you may incur. Most credit cards back you up for about 15 days, but that's not the case when you're over 65.
- Rental car accident. This type of policy does not protect against third-party property damage, medical bills, or the vehicle. What it does is compensate the beneficiaries with a single sum for the death of a passenger or a specific injury established in the contract.
- Accident during a trip. If you die or lose a part of your body while traveling by regular means of transport (plane, train or bus), your family could receive a lump sum payment. Although some credit cards offer up to $1 million, the payment depends on the company and the type of injury.
Español: Seguros que pueden incluir las tarjetas de crédito