The Sweet Credit-Card Perk You Have But Don’t Know About
You know that your credit card offers rewards like cash back and airplane miles, but many cards also offer automatic travel insurance, which could prove valuable on your next trip.
Nearly 90 percent of reward credit cards offer accident insurance while you’re on vacation and 63 percent cover luggage if you use you card to pay for the trip, according to a new report by CardHub. On nearly a quarter of cards that offer travel accident insurance, coverage is more than $300,000.
Almost three-quarters of cards that cover luggage will pay you for lost bags, while nearly half cover delayed luggage.
Related: Credit Cards Can Be Your Best Friend—or Worst Enemy
The report found that the Chase Sapphire Preferred Rewards Card offered the best travel insurance, followed by Discover It, Wells Fargo Propel 365 and Citi Prestige.
Coverage amounts vary and restrictions apply, so check in with your issuer to get the details of what your card offers.
Travel insurance isn’t the only time credit cards come in handy for travel. Some cards also offer roadside assistance. If your car breaks down, runs out of gas, or you lock your keys inside most credit cards will send roadside assistance to help you out.
That perk, while convenient, isn’t free. The issuers usually charge you a discounted rate for the service and bill it directly to your credit card. Discover, for example, charges $70 per incidence but covers 24-hour towing, assistance and locksmith services.
Chart of the Day: Boosting Corporate Tax Revenues
The leading candidates for the Democratic presidential nomination have all proposed increasing taxes on corporations, including raising income tax rates to levels ranging from 25% to 35%, up from the current 21% imposed by the Republican tax cuts in 2017. With Bernie Sanders leading the way at $3.9 trillion, here’s how much revenue the higher proposed corporate taxes, along with additional proposed surtaxes and reduced tax breaks, would generate over a decade, according to calculations by the right-leaning Tax Foundation, highlighted Wednesday by Bloomberg News.
Chart of the Day: Discretionary Spending Droops
The federal government’s total non-defense discretionary spending – which covers everything from education and national parks to veterans’ medical care and low-income housing assistance – equals 3.2% of GDP in 2020, near historic lows going back to 1962, according to an analysis this week from the Center on Budget and Policy Priorities.
Chart of the Week: Trump Adds $4.7 Trillion in Debt
The Committee for a Responsible Federal Budget estimated this week that President Trump has now signed legislation that will add a total of $4.7 trillion to the national debt between 2017 and 2029. Tax cuts and spending increases account for similar portions of the projected increase, though if the individual tax cuts in the 2017 Republican overhaul are extended beyond their current expiration date at the end of 2025, they would add another $1 trillion in debt through 2029.
Chart of the Day: The Long Decline in Interest Rates
Are interest rates destined to move higher, increasing the cost of private and public debt? While many experts believe that higher rates are all but inevitable, historian Paul Schmelzing argues that today’s low-interest environment is consistent with a long-term trend stretching back 600 years.
The chart “shows a clear historical downtrend, with rates falling about 1% every 60 years to near zero today,” says Bloomberg’s Aaron Brown. “Rates do tend to revert to a mean, but that mean seems to be declining.”
Chart of the Day: Drug Price Plans Compared
Lawmakers are considering three separate bills that are intended to reduce the cost of prescription drugs. Here’s an overview of the proposals, from a series of charts produced by the Kaiser Family Foundation this week. An interesting detail highlighted in another chart: 88% of voters – including 92% of Democrats and 85% of Republicans – want to give the government the power to negotiate prices with drug companies.
