5 Premium Credit Card Protections that are a Lifesaver this Holiday
The holidays can be a whirlwind when it comes to gift shopping and travel logistics. Planning holiday expenses with the help of a credit card can offer convenience — particularly, when it comes to online shopping and maximizing rewards credit cards — but also when it comes to its valuable benefits.
Whether you’re dealing with a strict return period for a holiday gift or a storm delays your trip en route to a family gathering, here are five credit card benefits offered by premium cards that come in handy this season.
1. Purchase protection
If someone breaks into your apartment and steals your Christmas gifts, your card may be able to reimburse the loss. Purchase protection covers stolen or damaged items that are eligible under your credit card’s benefits program. As long as the goods were purchased using your credit card and meet the requirements for protection, you can file a claim for reimbursement or repairs.
Typically, the card imposes a maximum benefit limit, for a limited time. For example, the Chase Sapphire Reserve card offers up to $10,000 protection per claim with a maximum of $50,000 of protection each calendar year. This benefit is available within the first 120 days that the item was purchased using the card.
2. Return protection
You may have done your best to find a gift that suits your giftee, but things happen that might warrant a return. For example, if the gift isn’t the right size or if they received a duplicate gift. Some cards offer return protection, which may cover you, if you pass the merchant’s original return window or the seller refuses to reimburse you.
The Platinum Card by American Express, for example, offers this useful benefit. If you’re unable to return an item for a refund with the merchant, you can submit a claim within 90 days of purchase and you may get a refund of the purchase price. This, however, doesn’t include shipping and handling costs. Each claim may be up to a $300 value with a maximum claim benefit of $1,000 per calendar year.
3. Travel cancelation / trip insurance
Severe weather can really spoil a holiday trip back home. Although you may be able to withstand a couple hours of delay, trip cancelation can mean hundreds or thousands of dollars lost for flights and/or hotels. Chase Sapphire Reserve cardholders, however, have trip insurance that could cover eligible costs associated with inclement weather.
You may be able to get reimbursed for pre-paid travel costs if the charges were made to your Sapphire Reserve card and the holiday trip is canceled. Not only are primary cardholders covered, but immediate family members are, too. Each trip is covered up to $10,000 with a maximum of $20,000 per trip (for example, if you and a spouse are traveling on the same flight or trip) and up to $40,000 every 12 months.
4. Lost luggage insurance
It’s heart-breaking to lose your luggage while traveling. It’s even more devastating when you have valuables inside or even holiday gifts. Some premium cards, including the Sapphire Reserve, offer lost luggage insurance for lost, stolen or damaged luggage while on a covered trip.
Sapphire Reserve offers cardholders the luggage benefit of covering up to $500 per person, per claim. Certain items contained in the luggage, like watches, electronics and jewelry, provide an increased benefit coverage of $3,000.
5. Auto rental collision coverage
Auto rental collision coverage is an extra benefit that some non-premium credit cards offer to traveling cardholders. It offers either primary or secondary coverage, if your rental car is involved in a collision.
Primary coverage means you don’t have to file a claim with your personal car insurance company. Secondary coverage means you must file a claim through your personal car insurance company first, then the card’s auto rental collision coverage will cover eligible coverage gaps afterward. The Sapphire Reserve card offers primary coverage while the American Express Platinum Card offers secondary coverage, for example.
Although it’s always wise to practice responsible credit card habits when using your credit card — regardless of the holidays — these premium card benefits can give you a little financial peace of mind during this chaotic time of year.