April 2025
WalletHub recently published insight featuring Dirk Hackbarth, Professor in Finance, discussing the information gap between credit card issuers and users when it comes to lesser-known benefits like rental cars, travel, and cell phone insurance, leading to widespread underuse.
Complex policy language, skepticism about reliability, and overlap with other insurance contribute to this disconnect — barriers that often prevent consumers from taking full advantage of their credit card benefits.
“This issue is compounded by complex policy language, skepticism about the reliability, and potential overlap with existing insurance. To address this, clearer consumer “personal finance” education and more transparent disclosure practices are essential,” Hackbarth adds.
Hackbarth finds cell phone and retail return protection less useful, advocating for simpler, more user-friendly benefit structures.
