5 Benefits Of Credit Card Insurance And Its Types


Different credit card companies offer different benefits, but one of the key benefits they offer is insurance coverage. Credit card insurance can cover accidents, cancellation insurance or even rental insurance. 

Depending on the nature of the credit card insurance coverage, it can safeguard your interests from fraud and unauthorised card usage, unpaid bills, loss and damage to the card, emergencies during travel, etc.

So, read on to learn more about the benefits of this facility.

Top 5 Benefits of credit card insurance

  1. The extent of coverage with these insurance plans is extensive. It can include accidents, roadside assistance, and travel emergencies.
  2. As a result of such extensive coverage, these insurance plans safeguard the cardholder’s financial interests from a wide range of scenarios.
  3. These insurance plans are also effective against financial scams and various credit card frauds.
  4. These credit card insurance plans also extend coverage for treating critical illnesses.
  5. In case of unpaid bills due to any financial stress, these insurance plans come handy as they offer coverage against them.

Types of credit card insurance plans

  1. Insurance for personal accidents: Personal accident insurance policies are useful when encountering such an unfortunate situation. Serious road accidents can lead to death or severe injuries, and these insurance plans offer the necessary coverage and help you navigate during these trying times.
  2. Trip cancellation insurance: Any emergency can occur before a trip that can make you cancel your trip last minute. If that trip is arranged with your credit card, cancelling trip insurance can help you recover the losses. This advantage is not available on every credit card. However, cancellation caused by previous illnesses or sudden weather changes is non-considered.
  3. Rental car insurance: If you ever rent a car with your credit card and that car faces any kind of serious accident that causes severe damage, then you can always claim the car rental insurance that comes with the credit card rather than paying for it from your pocket. However, this insurance policy does not cover any damage to the other vehicle, serious personal injuries or theft of any valuables of the car.
  4. Insurance for mobile phone replacement: It can be easily said that this is one of the unique benefits that credit card companies offer. If you purchase a mobile phone using your credit card and, unfortunately, it gets damaged or stolen, this insurance plan covers your buying cost of the device. Although it should be strictly considered that the mobile one was purchased with the same credit card.
  5. Lost baggage insurance: If your flight booking payment has been made through your credit card, and your check-in luggage goes missing or gets misplaced, you can cover your loss by claiming the lost baggage insurance that comes with your credit card.
  6. Protection for purchasing: When you purchase something using your credit card and face any issues like fraud or getting the wrong product, this insurance plan will cover your cost.

Point to remember before claiming credit card insurance

It is undoubtedly effortless to claim credit card insurance, but there are a few things to remember before proceeding

  • One of the many essential things that should be taken under consideration about these insurance policies is that the credit card holder needs to make insurance premium payments through credit card offers available online.  
  • Insurance policies come as one of the most significant features of the credit card after availing that card from the card issuer.
  • Suppose a nominee tries to claim after the unfortunate death of the primary credit card holder. In that case, the nominee must ensure that the necessary documents are submitted, like the death certificate, hospital reports, accident FIR, post-mortem reports, police reports etc.


There are many other insurance plans available with credit cards, and you can learn about them from the guide in the credit card welcome kit. Considering their benefits, it is ideal to opt for them as they can help you significantly during emergencies.