Credit card Insurance – is it worth it?
There are various companies offering credit card insurance. But is credit card insurance worth it?
All types of insurance are designed to give you peace of mind in the event of the thing you have insured against happening e.g. building insurance if your property is burned down. In the case of credit card insurance you are covered for losses incurred if your credit card is lost or stolen. As with all types of insurance taken out you need to check the Terms and Conditions to ensure you are covered for what you believe you are covered for so that there are no nasty surprises should you need to make a claim.
The cost of the credit card insurance policy will vary between different insurance companies and will be determined by the extent of the cover offered. Before applying for credit card insurance cover, check your contents insurance policy as this type of policy tends to provide such cover.
Whether credit card insurance is worth it is really up to you. If you do not have contents cover or if your contents cover does not cover you for losses sustained on your credit card then this type of insurance cover might give you peace of mind. Remember too, that with the introduction of chip and PIN credit card fraud has been reduced by up to 80%. The main areas where credit card fraud is now committed is on the internet (your PIN is not required) or abroad where thieves can run up debts on your credit card in countries where your PIN is not required.
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