To find out what benefits your card provides, start by looking over your credit card’s terms and conditions. Most banks send a benefits guide of some kind in the mail, but you can usually find the same information online. Note: For most of these services and perks to take effect, cardholders must have made the relevant purchase with that specific card. When that washer you bought with cash breaks down the day after the manufacturer’s warranty expires, don’t expect your credit card issuer to treat you to an extra year of warranty protection. Be aware of the benefits on your different cards, so you can use the right one for each purchase. Here are some of the most important credit card benefits available today: This coverage varies by card, so see your card’s benefits guide for the details. A top-tier card might offer coverage for 120 days after a purchase with a cap of $10,000 per claim and an annual limit of $50,000. That’s a lot of broken microwaves. Issuers allow different windows for a price drop, but it will usually be no more than 100 days. And while some companies allow you to register your purchase and let them do the monitoring, in most cases, it’s the consumer that has to watch for price drops. For example, you might get an additional 24 months under warranty on eligible items. Coverage is good for the cost to repair or replace the item, up to the amount you paid for it. There may be a specific cap on larger items, so check your policy for details. Be sure you save the original receipt and a copy of the manufacturer’s warranty. Details vary, but you might expect guaranteed returns on items purchased within 90 days, for up to $300 per item, and with a maximum of $1,000 in claims per calendar year. Some policies include deductibles (say, $100) and individual claim caps of $600 or so. They will also usually limit the number of claims you may make in a 12-month period. At least one top-tier card provides primary coverage—it pays out before your own insurance does. This is a rare perk. The coverage amount on that policy is up to a whopping $75,000. Be sure you know your card’s policy before you buy the rental company’s plan. A good example is a policy that will reimburse prepaid, nonrefundable travel expenses in amounts up to $1,500 per person and $6,000 per trip. Find out which of your cards is most generous in this department, and use that one to book your reservations. In a typical policy, for example, you might get up to $500,000 in coverage for loss of life or accidental dismemberment, but only 50% of the policy amount if you lose only one hand or one foot or you lose your sight in one eye instead of both. Lost luggage coverage, on the other hand, will reimburse you for the value of any luggage that’s permanently lost by the carrier. At least one top-tier travel card covers not only the cardholder but also family members—even if the cardholder isn’t traveling with them.
