Purchase Protection

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