What are they Charging you? - Understanding Credit Card Insurances

Summary: Whenever you are shopping for a Credit Card you always wonder what all those insurances that come with the Credit Card Package stand for and how to issue a claim if something happens to you.

Each Credit Card Issuer offers different insurance programs and names them in different ways. However, following is a list of the most common insurance programs available and a brief explanation of each one. Names may vary but the concept remains the same. Whenever you feel that any of the following events occur, don't hesitate to contact your credit card issuer and inform them that the occurrence reflected in the insurance contract has taken place and that you want to know how to receive proper assistance on the matter. Purchase Safety Insurance Each time you buy goods with your credit card and those goods happen to be damaged, or get lost or robbed, you can always get your credit card company to reimburse the full or part of the purchase price in compliance with the insurance policy. This is specially useful when you buy expensive home appliances as anything that might happen will be covered by the policy even if your home insurance policy also covers these events. Theft Insurance As long as you call your credit card issuer immediately after you loose or get your card stolen, the credit card company will block the card and not charge you for any purchase made after the theft or reimburse you the money if the purchase has already been processed. Bear in mind also, that not only should you report the robbery due to the insurance but because it is also a legal duty. Fraud Insurance Protection Identity theft has became a growing issue for credit card companies, as it is driving away customers from credit cards that do not include this kind of insurance. Whenever you are subject to fraud due to the use of your credit card number and identity to make purchases without your consent, you should immediately let your credit card issuer know that fact and tag that operation as unauthorized. The money will be placed on hold till the problem is solved and any payment processed will be reimbursed if the fraud is confirmed. Travel annulment Insurance If you've bought a plane ticket and maybe hotel reservations or other vocational products and something happens that forces you to suspend or cancel, you'll be covered by this policy. You'll get reimbursed in full or partly according to the insurance policy and you might also get to change the tourist-pack in order to go on vacations on another date. Travel Accident Insurance Last, but not least, this insurance will cover any accidents or even death during your travels. Let's put aside the event of death which works exactly as a death insurance. In case of an accident, all your costs, including medical bills, transportation, phone calls, medicine, etc will be fully covered by the insurance company.