One advantage of buying things with a credit card is that your purchase is often insured. This is thanks to credit card purchase insurance. This insurance basically covers you against defects, breakage, theft and other problems with goods you buy with a credit card.
Many credit cards offer credit card purchase insurance free of charge as part of your credit card agreement. In essence, any time you use the card to buy something, that item is automatically insured for a certain period of time.
Credit card purchase insurance may have many restrictions. It may only apply to certain items and may have a minimum or maximum value that it covers. Most cards also have either an annual or lifetime limit for coverage. There also is a coverage period, usually 90 days, after which the insurance will no longer pay to cover the purchase. Credit card purchase insurance usually has exclusions, or things you buy that the policy won`t cover, including pets, food and big-ticket items such as motorcycles.
Examples of how it works
Say, you order a DVD player online that`s delivered by a package delivery company. The company leaves the package on your front porch when you aren`t there and by the time you return home, someone has taken the package. If you used your credit card and you have purchase insurance, the card will pay to replace your item.
Likewise, if you get the DVD player and it`s obviously damaged or it doesn`t work and the company you bought it from won`t replace or repair it, your credit card purchase insurance will pay for a new one. You will need to keep your receipt and you will need to produce a copy of a police report if the item is stolen. Credit card purchase insurance may also reimburse you if a retailer won`t accept a return for some reason.
Other types of credit insurance
In addition to credit card purchase insurance, many cards may also offer insurance to help protect your purchases in the event you can`t pay for them. These types of insurance usually cover events such as death, disability, job loss or critical illness.
Unlike credit card purchase insurance, the card company usually doesn`t offer these types of insurance for free but rather as add-ons that you have to pay for. They may be offered by the card companies themselves or a third party in conjunction with the card. If you pay for this type of credit card insurance, it will pay for your credit card purchases in the event that you no longer can.
For instance, if you are injured in a car accident, become permanently disabled and can no longer work, such a policy would then pay any debts you had accrued on any credit cards that are covered under the policy. Similarly, if you die, such insurance will pay off the bills of any covered cards so your family doesn`t have to.
If you are looking for traditional life insurance to cover your debts, you can use <a href=”http://www.lifeinsurancequotes.co.uk/discountcriticalillnesscover.html“>http://www.lifeinsurancequotes.co.uk</a> or a similar website to get quotes on a policy.