Credit Card Insurance

What Does Credit Card Insurance Mean?

Credit card insurance provides coverage for losses or damages related to the use of a credit card. This coverage may be a standard feature of the credit card account, included as an optional feature at the cardholder’s request, or purchased as a separate policy.

Insuranceopedia Explains Credit Card Insurance

Like other insurable items, credit cards offer a variety of coverage options. However, cardholders should be aware that some insurance features may already be included with their credit card account. Most credit cards offer the following:

1. Protection against unauthorized purchases: Only the cardholder is authorized to make purchases with the card. If someone else uses the card without the cardholder’s knowledge, the credit card’s security features, along with notifications from the issuer, may prevent or cancel those unauthorized transactions.
2. Partial reimbursement for lost baggage: Credit card companies often collaborate with airlines and travel companies, enabling them to assist in case of travel-related issues like lost or damaged baggage. This can include partial reimbursement to the cardholder.

Additional coverage may be available upon request or by purchasing a separate policy. This can include payment for credit card bills if the cardholder becomes unemployed or is unable to earn income.