Most no annual fee credit cards like the Chase Freedom and the Discover It card offer benefits like extended warranty and 90-day loss/damage protection for purchases.
We never opt-in for the store insurance because electronics typically come with a 1-year manufacturer warranty, and the credit card we purchase the item with has extended warranty up to a year.
There's no point in paying for store insurance when you're already covered by the credit card.
90-day loss/damage protection
Some credit cards offer purchase protection for goods against theft or accidental damage for a limited time. The date range usually ranges from 90-120 days.
To file a claim, be sure to keep the receipts, police report (for thefts), credit card billing statement showing the purchase, and any other relevant documents.
Return protection can be used for lower cost items; each credit card has a different maximum claim amount. This benefit can be applied when the merchant will not process a return for the purchase.
2. Online purchases
One of the reasons why I use credit cards for online purchases is to protect myself in case the item delivered is different from what was advertised. If you provide documentation to the credit card company, they will process a chargeback and deal with the merchant on your behalf.
There are a ton of boutique internet retailers popping up recently. In the off chance that the site I purchase from is fraudulent, I know I'll be protected from unwanted charges with my credit card.
Similar to why you should buy electronics for return protection, if for some reason the online retailer refuses to process my return, the credit card will process one for me.
3. Plane tickets
Some premium credit cards like the Chase Sapphire Preferred, the Chase Sapphire Reserve, and the Citi Prestige offer benefits like trip delay insurance if your flight is delayed 6-12 hours. The policy varies for each card, so be sure to check with your benefits administrator.
In some cases, the credit card will also cover medical emergencies and emergency evacuations for certain situations. The benefits are similar to medical insurance. Not all credit cards will offer this benefit, so be sure to check with your benefits administrator.
If an airline loses or breaks your luggage, some credit cards will provide a stipend or reimburse costs until the luggage is returned to you. Lost luggage is also covered under this benefit.
4. Car Rentals
Cards like the Chase Sapphire Preferred and the Chase Sapphire Reserve offer primary collision damage waiver when you rent a car. Be aware that this does NOT include third-party liabiliby insurance.
For more details about renting a car with a credit card, check out the post here or watch the video below:
Car rental status
Some premium credit cards like the Amex Platinum will offer a status match at certain car rental agencies. Watch the video below to learn how to get Platinum status at Sixt Rent-A-Car:
5. Concerts and events
Gain exclusive access to pre-sale tickets with certain American Express and Citi credit cards. Don't want to pay a premium to see Hamilton? All you have to do is call the card concierge during pre-sale to snag retail priced tickets.
Certain Citi cards have missed concert insurance in case of an emergency. Chargebacks can also be applied in the case of canceled events/non-performance.
Credit cards provide a ton of hidden benefits that can prove useful later. Benefits vary based on credit card, so be sure to read the benefits guide or contact the benefits administrator to see if your case is covered.
Important: You should only use credit cards if you can pay the statement in full each month to avoid accumulating interest charges. Paying more for an item because of interest usually negates the above benefits.
On the flip side, here's a video about the 5 things you should NOT pay for with a credit card: