Credit card insurance: those great unknowns. More and more people are using credit cards. Whether to withdraw money from ATMs or to pay for consumer goods and services. However, what many of them do not know is that the advantages of these plastics go beyond those of paying the amount of purchase in a deferred manner. These advantages include a whole series of linked free insurance policies that, when the time comes, can be very useful for the user. Accidents abroad, cancellations and annulments of a trip, or fraudulent purchases, are some examples of this.
How is credit card insurance?
Usually, the credit card insurance included in credit cards does not have an added cost. Thus, the most common cards will have a lower volume of insurance or coverage. And those that are part of a more exclusive product, will present a greater number of advantages.
Most common credit card insurance coverage
As we have told you, you should not think that all credit cards offer the same level of insurance. The differences between one and the other will be established in the proposal of each financial institution. However, the most common coverage included in this type of product refers to theft or loss, accidents, and trips.
However, the most common coverage included in credit cards are:
Life or death coverage
This type of coverage is present in most credit cards, with the holder as insured, and with the main function of protecting the possible credit available in the balance of the card in the event of death. In addition, it is also presented as family protection insurance with higher compensation in some cases. This insurance policy will remain in force as long as the ownership of the card is maintained.
Coverage and travel insurance
Travel coverage: This insurance can be associated with reimbursements or discounts in the event of delays or cancellations of a flight, loss or damage to luggage, and/or cancellation of a trip. Of course, in order to enjoy this type of insurance, it will be necessary that the credit card has been used to pay the amount of the trip in question. It may be more complete and useful for your case. Remember that these insurances do not always cover all the unforeseen events that may arise.
Insurance against theft, fraud, and duplicate credit cards
This is another of the insurances most required by users. Credit cards are one of the banking products that lead to the most fraudulent problems in their daily use. This is why most entities include insurance related to credit card theft and fraud. This type of insurance covers charges made to the owner’s account without their permission. As well as the possible cloning of the cards.
Purchase protection insurance
Purchase protection insurance has been gaining ground in recent years. They cover those inconveniences that may arise during the purchase of products with a credit card. For example, a product is charged twice when it is purchased online. Or that the order placed never reaches the recipient.
How can I find out what coverage my credit card includes?
Normally, credit card users are unaware of most of the insurance or advantages that they offer. In any case, to find out what coverage your cards include, we recommend that you pay attention to the contract you are going to sign before contracting them.
What does the insurance associated with the cards not cover?
As a general rule, card insurance does not include civil liability. Whether due to traffic accidents or other reasons. Neither claim occurred before contracting the card. As well as the damages caused by suicides or attempts.