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Do you know your credit card insurances? discover the most common ones



Do you know your credit card insurances? All credit cards have associated insurance. In the vast majority of cases they are free insurances that can provide very interesting coverage for the user, however, these insurances are a great unknown for users because, on the one hand, they are not paid attention to like other insurance products, and on the other hand, financial institutions do not offer clear information about what they entail and what they provide.

This mixture of lack of attention on the part of the user and lack of information on the part of the financial institutions led to the conclusion that, on average, the vast majority of credit card holders are unaware of the levels of free coverage that they actually have, with many cases accumulating similar coverage and certainly not being aware of the benefits that such associated insurance can offer.

We will now review the main insurance policies associated with credit cards that are most frequently offered to us, taking into account that in many cases our credit cards may have a combination of several of them.

Life insurance

This is probably the most common insurance and offers a certain amount of life insurance on the cardholder, which generally offers at least the coverage of the card balance in the event of death. In addition to supplementary amounts it can be shown as family protection insurance.

Anti-fraud insurance

This is another common insurance. It covers the fraudulent use of cards due to bad practices such as card cloning or the use of cards not recognized by the user; this type of insurance should not be confused with theft or loss insurance.

Theft or loss insurance

This is an insurance that will cover the charges made on our account up to 72 hours (usually) prior to the notification of the theft or loss of the card. In this case, and as always when a credit card is lost, it is essential to comply with the conditions required to notify the entity in due time and form.

Travel accident insurance

This insurance, not to be confused with travel insurance, provides coverage for accidents and illnesses of both the cardholder and his/her immediate family occurring during travel; it may include issues such as emergency medical expenses, emergency assistance and even hospital transfers.

Travel insurance

Unlike the previous one, this is an insurance that can provide coverage for flight delays and cancellations, and can be complemented with insurance for damage or loss of luggage to cover these events.

Purchase protection insurance

Six is an insurance that comes to cover the problems that can arise in the purchases with the credit card, more concretely in the acquired products. They are usually conditioned to a concrete term and to the total payment of the product having been acquired with the card.

But there can be many other types of insurance on credit cards

Insurance has really become a very important addition to credit cards. The list we have reviewed really refers to the usual insurances on common credit cards, but when we start looking at the top 100 of the best cards all this skyrockets dramatically.

And the fact is that just as luxury credit cards provide services of all kinds, they usually carry insurance of all kinds, including huge life insurance, fraud protection, theft, etc….

Are credit card insurances worth it?

They are usually very generic insurances and, in most cases, directly related to possible defaults that may occur on the card as well as possible fraudulent uses of the same. In any case, even when it comes to this type of basic insurance, the truth is that it is always interesting to find them associated with the credit card.

Keep in mind that in principle you will never be asked to pay an additional cost for the insurance associated to the card. This in any case would be to contract an insurance separately and that really would be contracted as another product. We must always visualize credit card insurance as an added value that is offered to us and from which we must obviously benefit.

For this reason, when we talk about comparing credit cards, we are really referring to evaluating all the elements of a card, including added values such as insurance that can have a positive impact on our personal finances as a whole.

It is a different matter if we consider taking out a card exclusively because of the associated insurance. This does not necessarily end up being a good idea since, in the first place, the card must be considered as a financial instrument that first of all must fit precisely to its function and to our costs, that is to say, it must be adequate for our personal finances. After verifying that this is the case, that the card meets our financial expectations, is when we must assess the bonuses, insurance or added values and make the relevant comparisons.


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