Credit card travel perks make them good vacation partners

Benefits vary widely, so shop for a card that fits your travel plans

By Susan Ladika

Rental car insurance. Hotel breakfasts. Roadside assistance. All can be quite costly, but you may be able to get these and myriad other travel benefits for free simply by reading the fine print on your credit card agreements before you hit the road or take to the air for spring break or summer vacation.

"In this economy, where everyone is looking to rein in spending, looking at your credit card reward programs to make sure you're getting the most out of them is really important," says Mona Hamouly, a spokeswoman for American Express.

While the benefits vary greatly from card to card, American Express, Visa, MasterCard and Discover all offer cardholders various travel perks if they use their card to pay for travel arrangements.

The best card for each individual traveler "depends on your lifestyle," Hamouly says.

Travel perks, free and fee
Benefits may differ based on the cost of the card. A platinum card from American Express, for example, carries a $450 annual fee, and cardholders can get perks such as access to airport clubs as well as hundreds of dollars in benefits when booking at particular hotels and resorts, Hamouly says.

On the other hand, American Express cardholders are eligible for the Destination Family program if they book their trip through American Express Travel. They can receive perks such as a free car seat or milk and cookies delivered to the room.

The program was launched last year, Hamouly says, because the company realizes "travel as a family is very cumbersome."

In comparison, a Chase Sapphire card with no annual fee includes things such as refunds if trips are canceled, and reimbursement for lodging and meals if trips are delayed, says Laura Rossi, vice president of external affairs for Chase Card Services.

Those holding a Continental Airlines card from Chase can fly on the airline without having to pay for their first checked bag, if you purchase the ticket with your Chase card.

MasterCard's perks include pre-trip assistance, such as providing information on visa, passport and immunization requirements when traveling abroad, as well as reimbursement for possessions that are stolen if your hotel room is burglarized.

And Discover is among the credit card providers offering services such as delivery of a replacement passport if yours is lost or stolen, and a Global Traveler's Hotline to assist if an emergency arises, says spokeswoman Mai Lee Ua.

Is your rental covered?
Ed Perkins, a contributing editor at SmarterTraveler.com, says that for most credit card holders, "the most important (benefit) is collision coverage on rental cars."

Dan Ferber, a writer from Indianapolis, found that out after he backed out of a hotel parking garage while on a trip to Maryland. He caught the front end of the rental car on one of the garage pillars. The car "was toast. It did a lot of damage considering I was going 10 mph. I was kind of worried because it did not look like a cheap repair."

Ferber had declined the collision insurance offered by the car rental agency, so he called his automobile insurance company when the accident occurred. His insurer directed him to contact MasterCard, which he'd used to pay for the rental car. He submitted paperwork to MasterCard regarding the damage and never paid a penny out of his pocket for repairs.

However, Perkins cautions there can be issues when using a credit card to cover collision insurance. "The main problem is that it's secondary," Perkins says, so travelers have to file a claim with their own insurer first, before the credit company picks up the remainder of the bill.

But if you have a corporate Visa or MasterCard, the cards serve as primary insurance, Perkins says, and an American Express cardholder can upgrade to primary insurance for a flat fee per rental.

If a traveler has an accident with a rental car, "the rental car companies pile on the charges," Perkins says. The company dings customers not only for the damage, but for the loss of use when the car is in the shop being repaired.

If you don't own a car and thus don't have car insurance -- not uncommon for residents of big cities, such as New York or San Francisco -- the credit cards automatically serves as the primary insurance provider, says Carolyn Paddock, who worked as a flight attendant for 18 years before starting the website In-flight Insider.

Before traveling, Paddock recommends checking with your credit card company to find out exactly what benefits it offers. Cardholders can do that by reading the information booklet that came with their credit card, checking the benefits online or calling their provider's toll-free number.

'Why not take advantage?'
Since credit card providers offer the benefits anyway, "why not take advantage of them?" Paddock asks.

"Traveling is incredibly stressful," she adds. Knowing in advance what your credit card offers "certainly would make life easier."

See related: Credit cards' coverage varies on rental car insurance, Avoid headaches with this 5-step plan for taveling with credit cards, The greatest gift of all: free travel, Have card, will travel: A guide to traveling with a credit card

Published: March 11, 2010

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