Credit Card FAQ

Do I Need Credit Card Insurance?

30 July 2010 by CreditCardsCo™

This is one of those famous questions that does not have a definite answer and is known to vary from person to person. Every individual has their own perception when it comes to credit card insurance and whether or not they actually need it. Instead of us giving you a definite answer, we have decided on to presenting you with all the facts that you need to know about credit card insurance so that you can make an informed decision for yourself as to whether or not it would be a worthy option to go for or not.

One of the most important things that you have to remember about this particular form of insurance is that you are insuring something that allows you to buy products and services on credit; money which you don't have at that particular moment in time. Nearly one in every three house holds in America alone is known to have at least one credit card per family; mostly for emergencies. Each credit card is known to have a set monthly limit that you can use which is required to be paid at the end of each month with interest. Considering that credit card fraud is at an all time high, it is important that one considers the effects that they could face if they are not insured on their card.

The last thing you would want is to lose your credit card or have it stolen, to find out that a person has made purchases till your card maxed out. Not being insured by any insurance company will mean that you will be expected to pay the amounts used on your name with interest. Even though the transactions did not take place under your authorization, the legal fact remains that your card was used and that you were not insured in any way or form against unauthorized use of your credit card. In the eyes of your credit card company, someone will be liable to pay for these damages.

Losing your credit card and having the need to get it replaced in it self will cost you around $100. These are just some of the basic expenses and flaws that you will have to deal with when it comes to not insuring your credit card and you finding yourself in such a situation. The only real downside to credit card insurance is that you might end up paying an insurance premium for a number of years but never have the need to use it. This is where your own personal judgment will come into play as to whether or not having insurance out weighs the cons of not having it at all.

It is important to keep in mind that not all credit card insurance policies are worth going for. If you are deciding to take out credit card insurance, it is very important that you take the time to read and understand the policy that they are offering. In these specific cases, it is a good idea to get some legal or/and expert advise as to which insurance plan would be best suited.

Discuss at The importance of credit card insurance forum.

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