The Complete Guide to Credit Card Insurance

Credit card insurance coverage and protections are easily overlooked and may seem complex, but they are valuable when you need to make a claim. If you’re aware of which insurance benefits are available and how to take advantage of them, you can get a lot of extra value out of your credit cards.

This article examines common credit card insurance coverage and which cards carry these benefits and protections.

Introduction to Credit Card Insurance and Protection

Each insurance benefit varies by credit card and card issuer, and the levels of coverage provided vary among card issuers and individual credit card products. Refer to your guide to benefits or cardholder agreement to determine the level of benefits available for your specific card. You can also call the number on the back of your card for more details on your insurance coverage.

Most credit card insurance policies are secondary to other insurance you might have, so your coverage only starts where any other insurance you have ends. You may be required to file a claim with your own insurance policy before collecting from your credit card coverage.

For example, with credit card return protection, you’d first attempt a return with the merchant before filing a claim with your card insurance.

Shopping Insurance Benefits and Protection

Most credit cards come with some level of protection for eligible purchases, whether they are lost, stolen, or damaged, or if you find a lower price.

Purchase Protection Insurance

Purchase protection insurance can provide coverage when an eligible product purchased with your card is lost, damaged, or stolen within a stated period from the date of purchase. Coverage limits may apply per item, per claim, and per year.

Dozens of credit cards carry this commonly found coverage. American Express alone offers coverage on 62 of its cards.

The following is a sample of the best cards that offer purchase protection, but you can learn more about this coverage and the cards that offer it in our guide to the best cards for purchase protection.

Return Protection Insurance

Return protection insurance covers you in cases where an item you have purchased is not accepted for return by the merchant from which you purchased it. The coverage is limited to a specific time frame from your purchase date, typically 90 days.

You receive a maximum dollar amount per item you need to return, and you may have to send the item to the credit card company (though not always). You are responsible for the cost of shipping returned items.

Here are some of the cards that offer return protection:

Extended Warranty Protection Insurance

One of the most common credit card insurance benefits is extended warranty protection. With this benefit, you often get an additional year or more beyond what you’d normally receive with a manufacturer’s warranty.

The caveat is that the original warranty must be valid for a specific time frame, typically 3 to 5 years, depending on the card, or may only match the manufacturer’s warranty if it is less than a year.

Here are some of the best cards that offer an extended warranty plan on eligible purchases:

Cell Phone Protection

Cell phone protection is a valuable benefit that is increasingly common on credit cards. You need to pay your monthly cell phone bill with the applicable card, and be aware that phones financed, rented, or borrowed may not be covered. Coverage typically includes accidental damage and theft.

Coverage can range from $600 to $1,600 per claim, and some cards allow you to file more than 1 claim per year. Deductibles and other conditions may apply.

Price Protection

Price protection is a benefit that allows you to file a claim if you find a lower advertised price for an item you’ve purchased. The item must be purchased with an eligible card, and a claim must be submitted within a specified period, typically 90 to 120 days after the purchase date.

You need to provide original receipts with your claim, along with copies of the advertisement where you found the lower price. This benefit is only eligible for coverage up to a certain amount per item and a total per year.

You receive the difference between the purchased price and the advertised price you found.

Here is a sampling of the very few credit cards that still offer a price protection benefit:

Bottom Line: Shopping insurance policies and protections for eligible items you purchase with your card can offer valuable financial benefits should the item become damaged, lost, or stolen, or if you find it at a lower price. When purchasing an item with your applicable credit card, be sure to save receipts in case you need to file a claim. 

Travel Insurance Benefits and Protection

In addition to shopping protections, you’ll find several valuable travel insurance benefits on many credit cards.

Let’s dive into a few key travel insurance coverages and a list of some of the best cards on which you can find these benefits.

Primary Car Rental Insurance

Primary car rental insurance covers you when renting a vehicle and provides coverage directly without you having to first file a claim with your own insurance company should you have a covered incident. Normally, you find coverage for damage, theft, loss of use, and some towing coverage.

The benefit is activated when you decline the collision damage waiver or loss damage waiver insurance from the rental car company. Liability coverage is not included on credit cards.

The following cards offer primary car rental insurance, but be sure to check out our article dedicated to the best credit cards for car rental insurance.

Roadside Assistance or Dispatch

If you’re stranded by the roadside, having access to roadside assistance could be extremely valuable. Unfortunately, more and more cards are removing premium roadside assistance coverage from their offerings.

Premium roadside assistance normally covers towing (with limits), tire changing, emergency fuel delivery, jump-starts, and lockout service. There may also be a cap on the coverage provided for each incident. Roadside dispatch service differs in that it helps secure assistance and typically includes a discounted service call fee, but you are still responsible for the full service call fee.

Here are a few cards that still offer premium roadside assistance.

Emergency Evacuation and Transportation

Emergency evacuation is a valuable coverage typically offered only on premium travel rewards cards. The coverage provides emergency medical evacuation to the nearest hospital, repatriation services, and, in some cases, the cost of having a loved one join you.

Coverage can have maximum limits or offer unlimited coverage, and may include a small amount of emergency medical or dental coverage.

You must use your card to book your trip and call a specific benefit number to arrange transportation. The coverage only applies when you’re at least 100 miles away from home.

See our guides to the Chase Sapphire Reserve card and Amex Platinum card for more details on emergency and medical evacuation coverage and travel insurance.

Travel Accident Insurance

Most credit cards offer travel accident insurance. It is an ancillary coverage that is rarely used but could provide substantial benefit should a covered event occur.

The coverage applies only if death or severe injury occurs while traveling on a common carrier during a covered trip.

If you’re looking for the best cards offering this benefit, explore our top list of cards that offer travel accident insurance. Or, for more general information on travel insurance, see our ultimate guide to buying the best travel insurance.

Trip Cancellation and Trip Interruption Insurance

When your trip is canceled or disrupted, you may incur unexpected expenses or change or cancellation fees. If you have the right card, you may be eligible for reimbursement if the cancellation or disruption is covered by the trip cancellation and interruption insurance on your card.

Trip Delay Insurance

Trip delay insurance can save the day if you are stranded because of a covered event. Coverage varies by card but usually kicks in after a 6- to 12-hour delay or overnight and can cover incidentals, such as a hotel room.

Lost and Damaged Luggage Insurance

If your baggage is lost, damaged, or stolen, it can put a damper on your trip. Baggage insurance can help compensate you for a covered loss. Coverage is available on many cards, but here are some of the best for luggage insurance.

To learn more, check out our article on the best cards for lost, stolen, or damaged luggage insurance.

Baggage Delay Insurance

Delayed baggage insurance reimburses you for incidental expenses if your baggage is delayed for a specified period, usually more than 6 hours.

Bottom Line: Several cards offer some sort of baggage insurance. Learn the details of this coverage and which cards offer baggage protection.

Additional Card Benefits

In addition to insurance and protections, you’ll find a variety of valuable benefits offered on many credit cards. Here’s a sampling of those benefits.

Statement Credits for Purchases

Some credit cards offer reimbursement for specific purchases as a statement credit. If you can utilize this benefit, it can provide direct economic value and potentially offset much of the annual fee.

Premium travel rewards cards such as the Amex Platinum card, Chase Sapphire Reserve card, and Citi Strata Elite card offer numerous statement credits for specific purchases. Enrollment may be required to qualify for the credit.

• Global Entry or TSA PreCheck fees
• Airline incidental or travel purchases
• Hotel credits

Entertainment Benefits

Premium cards such as the Amex Platinum card and the Chase Sapphire Reserve card stand out by offering invitation-only events, VIP treatment, and presale ticket purchase access. You’ll find various levels of entertainment-related benefits on the majority of credit cards.

Learn more about these benefits and which credit cards are best for entertainment purchases in our comprehensive article.

Airport Lounge Access

If you travel frequently, you’re sure to appreciate having worldwide airport lounge access. This benefit is normally found on premium cards, but other cards may offer a limited number of single-use passes.

Hot Tip: If airport lounge access is important to you, see the best credit cards for lounge access.

24/7 Emergency Assistance

If something goes wrong during your travels, it’s good to know you have access to 24/7 assistance. Most credit cards provide some level of travel assistance that can help you arrange emergency transportation, translation services, local medical referrals, and more.

Complimentary Concierge Service

Need hard-to-get dining reservations, help to arrange a birthday celebration, or assistance finding that perfect last-minute gift? A call to your complimentary concierge assistant could be the answer to your problem.

Premium cards such as the Chase Sapphire Reserve card, the Amex Platinum card, and the Citi Prestige card offer dedicated concierge service. However, you can find concierge services on several other cards.

Hotel Elite Status Benefits

Many hotel-branded credit cards come with elite status in the associated hotel loyalty program just for having the card.

Here are some of the top cards that come with hotel elite status. Note that enrollment may be required in some cases.

Bottom Line: Having elite status in a hotel loyalty program can deliver great benefits such as room upgrades, on-site amenities, higher earnings, early check-in, late checkout, and more. We’ve mentioned just a few of the major programs here, but for more information on these and additional cards that offer hotel elite status and a faster path to elite status, check out our detailed article. 

Additional Hotel Affiliation Benefits

Many cards are affiliated with luxury hotel programs and offer elite benefits when you book a stay with your card. Cardholders can get perks such as upgraded rooms, early check-in, late checkout, onsite amenities, daily hotel credits, and complimentary breakfast.

*The information regarding the Centurion^® Card from American Express was independently collected by Upgraded Points and not provided nor reviewed by the issuer.

Using Your Card’s Insurance Benefits

Your guide to benefits is the definitive source for using your card’s benefits, but you can call the number on the back of your card to quickly find out which benefits you have and how to file a claim.

As with all insurance, filing a claim can be complicated and may require receipts, copies of credit card statements, and other necessary documentation. Pay attention to specific deadlines for notifying the claims administrator of the loss and for submitting the required documentation.

Keep in mind that credit card issuers do not handle insurance claims directly. Instaed, they use a third-party administrator. Expect to submit appropriate credit card statements and other seemingly redundant documentation.

Final Thoughts

This guide highlights cards that offer shopping protections, travel insurance, and related benefits. Knowing which protections you have can help you prepare for covered purchases, travel disruptions, or emergencies. The card issuer can add or drop coverage at any time, so be sure to check your card’s benefits guide or cardholder agreement for current coverage information.

The information regarding the U.S. Bank Visa Platinum Card was independently collected by Upgraded Points and not provided nor reviewed by the issuer.