Rewards credit card is the type of credit card you should apply if you want cards with perks benefits. Car rental insurance is commonly offered in rewards credit cards. The most common type of car insurance offered through credit card is collision damage. The collision damage insurance you get from the credit card is usually a secondary coverage, which means that it will only compensate you for the remaining collision expenses that your main auto insurance provider refuse to compensate. There are some terms and conditions that apply to the credit card’s car rental insurance so you should check with the car rental company.

There are credit cards that offer car insurance with primary coverage.
If your credit card offers primary coverage for car insurance, you can submit the claim to your credit card company first instead of your car insurance company. To take advantage of the credit card’s car insurance protection, you should use the card to pay for the car rental in full. You must also decline the collision damage waiver that is offered by the car rental company. The maximum length of coverage for car rental for most types of credit cards is about 30 – 31 days. MasterCard and Discover credit cards offers a coverage of 31 days while American Express offers a coverage of 30 days for car rentals. However, Visa credit card only offers a coverage of up to 15 days.

Not every type of vehicle is covered, for example, truck, antique vehicle, SUV, motorcycles and expensive cars are not covered. MasterCard and Discover’s car rental insurance program only cover cars that worth lesser than $50,000. Every type of credit card also have restriction on which country is covered. If you plan to rent a car overseas, make sure you first go through the credit card rental policy.

You can also get free hotel upgrades specifically from travel rewards cards such as Hyatt credit cards. You have to stay at the hotel for the minimum number of nights in order to qualify for the free upgrades. Some of the different types of free hotel upgrades are best room, hotel airport, internet access, free nights, food/beverage discount, complimentary upgrade in the room, free access to the gyms at the hotel, expedited check-in and checkout at a later hour and free breakfast. If you want to get free hotel upgrades, you should check which brands of hotels the credit card support.

Rewards credit cards usually let you earn points when you use it to buy something such as grocery and gas. You can earn even more points if you use the card to pay for your purchases at their hotel properties. Many travel rewards cards have annual fees but some card waive this fee during the first year. You are responsible for reading the fine print of your credit card prior to applying.