When it comes to our hard-earned money, we want to be protected from any kind of scam or theft. This is where credit card insurance comes in – this policy protects us from a variety of scams and thefts that can occur when we use our credit cards. We will discuss what exactly is covered by this insurance and how it can protect us from losing our hard-earned money. What is credit card insurance?
In short, credit card insurance is a type of insurance that reimburses cardholders for any (or nearly so) loss suffered as a result of fraudulent or unauthorized charges on their credit score. This policy may also cover the cost of goods or services purchased with the card, as well as the theft of money taken from an ATM using the card.
What's not covered?
Credit card insurance does not cover losses that are the result of bank misconduct or cardholder negligence, such as spending over your credit limit or making late payments. It also won't reimburse you for cash advances, which are when you withdraw money from an ATM using your credit.
How does credit card insurance work?
If you are unfortunate enough to be the victim of credit card fraud or theft, you should file a claim with your credit card issuer to be reimbursed for your losses, as well as of course report it to the relevant authorities. The issuer will investigate the charges in question and, if it determines that they were indeed fraudulent, will refund you the full amount of your losses.
What are the benefits of credit card insurance?
Credit card insurance can be a real lifesaver in the event of credit card fraud or theft, as it can help you recover quickly from any financial loss you have suffered. It can also provide you with peace of mind knowing that you are protected from these types of scams.
How Do I Get Credit Card Insurance?
Most credit card issuers will offer some form of credit card insurance as part of their benefits package. You may also be able to purchase an independent policy from a third-party insurer. Be sure to carefully read the policy agreement you are considering, as there may be some exclusions or limitations.
Which cards include credit card insurance?
In principle, all credit cards offer insurance included in the fee, among these obviously American Express stands out, which turns out to be one of the most complete cards in general.
Check with your issuer to see if your card offers this type of coverage.