Do any Dopers carry any “credit card insurance” - what the credit cards offer against fraudulent charges if your identity is stolen? Is it worthwhile to have, or is it a scam? Just wondering what the group’s opinion is, thanks. - Jinx
Read the terms and conditions of what you are actually liable for if your card is used fraudulently. It is usually $50 under the stipulation that you bring the fraud to their attention within a certain period of time. If that is indeed the case with your card, and you keep a reasonable eye on your account, insurance would be pretty pointless. Debit/ATM cards often leave you with more liability, around $500, again with an obligation to bring the fraud to the bank’s attention. You may have an overdraft protection option on those that may be a better deal than insurance.
There is another type of credit card insurance, one that makes your payments if you lose your job, become disabled, stuff like that. It is also not generally considered a good deal, but again consider your individual situation if you tend to carry a balance, see massive layoffs coming at your employer, etc.
Harriet, thanks for the advice, but am I missing something? Isn’t a $50 liability a good thing vs. a $500 liability? Thus, why would say that makes credit card insurance rather pointless? If you could, please elaborate.
Yes, the $50 liability is better. What she is saying is that you have this in place regardless of whether you purchase the insurance or not, so purchasing insurance is probably a waste of your money. You are protected no matter if you have insurance or not, it’s built into your credit card agreement.
Right, it’s a matter of having a credit card vs. a debit/ATM card, not a question of insurance vs. no insurance.
Eureka! I see the light! Thanks, y’all!
Ironic that I would post in this late last week as, quite literally, I must have been Jinxed. On Saturday night, someone in NJ decided to wreak havoc on my debit card by charging $2,000 on it. I’m in the middle of charges disputes with my bank and I should be liable for nothing (that’s what my bank offers). Still a massive pain in my ass, though.