What is credit card insurance?

AffiliatePal is reader-supported. When you buy through links on our site, we may earn an affiliate commission.


Credit card insurance is a type of insurance that is offered by some credit card issuers to protect cardholders from financial losses due to certain events, such as trip cancellations, lost luggage, or accidental death. Credit card insurance may be offered as an optional benefit to cardholders, and may be available for an additional fee.

There are several types of credit card insurance, including:

  1. Travel insurance: Travel insurance covers the cost of trip cancellations or interruptions due to unforeseen events, such as illness, natural disasters, or terrorism.

  2. Purchase protection: Purchase protection insurance covers the cost of repairing or replacing items that are damaged or stolen within a certain period of time after purchase.

  3. Extended warranty protection: Extended warranty protection insurance extends the manufacturer’s warranty on eligible items that are purchased with the credit card.

  4. Accidental death and dismemberment insurance: Accidental death and dismemberment insurance pays a benefit to the cardholder’s beneficiaries if the cardholder dies or suffers a covered injury in an accident.

It’s important to carefully review the terms and conditions of credit card insurance before purchasing it to ensure that it meets your needs and budget. Credit card insurance may not cover all types of losses and may have exclusions and limitations, so it’s a good idea to compare it to other insurance options before making a decision.