| |
Most
credit card
companies provide purchase protection insurance
for free, as an included benefit of owning their
particular credit card. As competition among
credit card companies is so fierce, creditors are
attempting many different strategies in order to
gain and retain loyal customers. Purchase
protection insurance is one of the benefits a
credit card company may offer that their leading
competitor does not- in an effort to gain new
customers and keep customers from "going over to
the other side". It is difficult for creditors to
retain customers when every other month it seems a
new company is offering a 0%
balance transfer
option to new account holders. Customers have
learned to play the credit card roulette game.
When their promotional
interest rates
go up; they simply find a new card to transfer
their balance to. If your credit card account is
one that does not offer purchase protection
insurance without charge as one of the included
benefits, you should be able to pay an additional
fee in order to obtain "optional purchase
protection coverage".
The
actual terms and restrictions of coverage for
purchase protection insurance will vary from one
credit lending company to the next, however, most
insurance will cover purchases made using the
credit card against theft, loss, or accidental
damage that occurs within a certain period of
time. Typically, purchase protection will cover
you for about 90 days from the date of purchase.
In order for a purchase to be eligible for
coverage, it may have to be worth a minimum amount
of money, also. In order to fully understand your
coverage, you need to read through your credit
card’s terms and agreements for all of the
specific details regarding the type of purchase
protection coverage you are entitled to. It’s
always a good idea to know your rights and
coverage before you actually need to use them. If
you have any questions about what you read, don’t
hesitate to call the credit card company’s
customer service line- that’s what they’re there
for!
What does purchase protection insurance coverage
do for the typical credit card user? For most
people, it will never actually do anything! Many
people are not even aware that purchase protection
exists, and don’t know whether or not their own
credit card offers the protection. For credit card
users who are aware of the coverage and want to
use it, it covers you in the event that you
purchase an item using your credit card that
becomes damaged on the way home or soon
thereafter, becomes lost, or someone steals it.
These are the typical eligibility requirements for
purchase protection coverage, although once again,
be sure to read your specific credit card
company’s policy for the exact details of your
coverage. In most cases, the credit card company
will refund the amount of the purchase (as shown
on your store receipt or credit card statement)
back onto your credit card account, although there
is almost always a maximum limit to how much money
can be refunded under the insurance. Most policies
will also have strict exclusions for certain types
of damages to items purchased, so a purchase
protection insurance policy is not a perfect
solution as not all instances of damaged items
will be covered, but at least it is better than no
coverage!
Purchase protection gives you peace of mind when
you are making purchases online. While the
majority of e-commerce sites are legitimate, there
are a few that take your money and then don’t
deliver the goods as stated on the site. In these
situations, you may be able to call on your
purchase protection insurance to assist you in
getting a refund for the item.
|
|
