Don't Overlook This Credit Card Perk That Could Save You $900 or More a Year

Many rewards credit cards not only allow cardholders to earn valuable rewards but also include helpful benefits. Some credit card perks are more well-known than others. If you have a rewards credit card in your wallet, it may be an excellent time to review the benefits offered to ensure you maximize the value you get from your card. There's one perk you may be overlooking.

Cellphone protection provided by credit cards is valuable

Did you know some credit cards provide cellphone protection benefits as a cardholder perk? This is available to cardholders who pay their cellphone service bill with an eligible credit card.

Coverage varies depending on your card, but typically, this benefit protects qualifying cardholders against covered cellphone theft or damage. You'll want to review your card's benefit terms to understand what to expect before you need to make a claim.

One credit card that includes this benefit is the Ink Business Preferred® Credit Card. Eligible cardholders can get up to $1,000 per claim. A maximum of three claims can be made within a 12-month period. The cardholder must pay a $100 deductible for each claim.

I have this card in my wallet, and this credit card perk saved me over $300 a couple of years ago when I needed repairs after dropping a brand-new cellphone only four days after I bought it. Yes, I know -- FOUR days. While I was upset about the damage, I felt better knowing I had adequate coverage to fix it quickly.

How much money could this benefit save you?

The latest smartphone models are expensive, and one unlucky drop can cause severe damage, so this cellphone benefit can provide significant value. The total value of this perk varies depending on the benefits provided by your card issuer.

But with the right card in your wallet, this benefit could save you $900 or more a year. In the example above, a credit card that offers up to $1,000 in protection per claim with a $100 deductible would result in cardholders saving up to $900 per claim. I'd much rather pay a $100 deductible than fork over enough cash to cover the entire repair bill.

Don't ignore this valuable coverage

Many people neglect to check whether their credit cards offer this protection before paying for coverage through their phone manufacturer or mobile phone service provider. If your cellphone provides this perk, and you're paying for coverage elsewhere -- you're wasting money.

Now is an excellent time to verify whether you have this coverage. This benefit could save the day when you least expect it. If you don't have a card with this perk, consider getting a credit card that offers this coverage. It could help you keep more money in your bank account.

While this isn't an exhaustive list, here are a few credit cards that offer some level of cellphone protection:

• Capital One Venture X Rewards Credit Card
• Chase Freedom Flex℠
• The Platinum Card® from American Express (terms apply)
• Wells Fargo Autograph℠ Card

Put your credit card perks to use

Pay attention to valuable credit card perks like this. Using the benefits that you're provided is an excellent way to get more value from your cards. If you're looking for a new card, check out our list of the best credit cards to explore your options.