Many credit cards have a purchase protection feature. Purchase protection means that customers are entitled to a refund of certain items they buy using a credit card. Take note, however, that the refund only applies until a certain time period after the purchase is made. This feature is convenient for cases wherein the price often fluctuates, especially in major purchases such as plane flights. By offering purchase protection in a credit card, customers are also encouraged to make the purchase without worrying if the price will drop or not.
The purchase protection feature is a perk of some credit cards, especially in platinum and gold cards. Standard credit cards may also offer purchase protection, but it may sometimes come with a fee and conditions may vary from one credit card company to another.
The conditions also vary among credit card companies, which is why it is important to read through the terms and conditions of the product coverage before purchasing a credit card.
A credit card purchase protection will generally apply to selected items. Consumable goods or vehicles are usually excluded from the purchase protection feature. The purchase protection will usually last for up to three months since the date of purchase; however, others can last as long as six months, depending on the circumstances.
Lastly, take note that there the claim limits of purchase protection usually amount to around $50,000 per year.
The best part of purchase protection is that it ensures that you can get reimbursed – and that you can report theft or damage immediately. Making the purchase by credit card also ensures that these purchases are tracked and that there is a clear record of it.
The credit card company and insurance company will take the necessary steps to make sure you get a refund for whatever goes wrong in your purchase.
It is important to note that the purchase protection feature is a type of insurance. This means that credit card companies also aim to encourage customers to spend on an item without worrying too much about not getting reimbursed in the event that the item is lost, stolen or damaged.
That being said, overspending is something to watch out for. It is easier to overspend knowing that your credit card has that safety net that comes in the form of purchase protection.
Second, there is also a risk that your details will be compromised the more you use your card, so be sure to use it at, say, a major retailer that you trust. Even then, it is always good to think twice before making that credit card swipe.
How do I make an insurance claim for a purchase?
First, you must contact the insurance company and provide details of the item purchase and proof that it was purchased with your credit card within the time frame specified. Supporting documentation should also be at hand, which includes online or print receipts. If the purchased item was stolen, lost, or damaged, proof of this will be needed, as well.
It usually takes 14 days to find out if the claim was successful.
However, take note that the process of making a purchase protection claim also varies, so it is best to check with your credit card company or insurance company first.