Do you have a credit card? There are some free insurance benefits available to you! Most credit companies offer various insurances to make their plastics more attractive for customers. For example, you can get refund if your purchases are damaged or avoid financial losses in case your credit card is lost or stolen. However, many cardholders don’t know about this coverage. So read about most common free credit card insurances and how they work. 

Keep in mind that insurance terms and conditions can vary from one issuer to another. Plus, they come with a lot of disclaimers. So don't forget to read your credit card agreement to find out specific details. 

Purchase protection insurance

If you bought a nice pair of jeans with your credit card and made a big hole in the knee, you could take advantage of free purchase protection plan. Under this insurance, all items you bought with your credit card are insured against damage, accidental loss or theft for up to 180 days from the date of purchase. 

The bank will return you the money for the purchase onto your account. However, credit companies always indicate the maximum amounts you can get under this insurance.  

Purchase protection is a very useful feature for people who like shopping online. While the biggest part of Internet stores is legitimate, there are some websites that can accept your payment and don’t deliver goods. In such situations, your purchase protection insurance will help you get a refund for this deal.

Zero fraud liability

Zero fraud liability insurance protects you in case your plastic has been lost or stolen. Typically, you won't be liable for unauthorized charges after your report the loss of your credit card to the bank’s customer assistance department. 

The rise of identity theft makes this policy extremely valuable for all credit cardholders. But keep in mind that you might be responsible for all charges incurred on your credit card before you report the loss.

Travel insurance

Most credit cards (especially premium ones) offer a variety of useful travel insurances which will protect you on your trip. The most common coverage is Automatic Travel Accident Insurance. It will protect you and your family if you bought plane, train or bus tickets with your credit card. While this coverage is quite limited, it’s better than nothing. 

Many credit companies offer additional travel insurances for their customers. For example, Discover has Passport and Travel Document Replacement and Lost Baggage Tracking protection. Another helpful option is Valuable Document Delivery Arrangements. It is designed to help you replace or receive important documents that you have lost (e.g. passport or credit cards).

Some Citi cards come with Auto Rental Insurance that covers you when you rent a car with your credit card and decline the insurance from the car rental company. Trip Cancellation or Trip Interruption insurance will help you recover losses if you can’t take or continue a trip you bought with your credit card. 
There are other free credit card insurances that are not so common. For example, some banks offer Price Protection plan. With this coverage you can get a refund if the price of an item you bought becomes lower within a set timeframe (typically up to 90 days).

Many customers have already taken advantage of Price Protection. In 2007, when the price of the iPhone 8Gb dropped from $599 to $399, Citibank and American Express returned $200 difference to many people.