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Balance protection insurance helps cover your credit card repayments if you unexpectedly can’t pay them yourself, like if you involuntarily lost your job or became unfit for work due to a critical illness or disability. It also helps pay the balance owing if you die. Since this insurance only kicks in under very specific circumstances, make sure to read the fine print carefully to decide if it’s worth paying the extra cost each month to add this coverage.
Example card where you can add balance protection: |
Purchase protection covers the cost of theft, accidental damage or loss of items paid for with an eligible credit card. This protection typically lasts anywhere from 90 to 180 days after you purchase the product or service with your ard.
Example card with purchase protection: |
Extended warranty coverage offers an extension on the manufacturer’s warranty for eligible items purchased in Canada. Usually, this insurance will double the warranty, usually up to a maximum period of 12 months. For example, if you bought an item with a 1-year manufacturer’s warranty, this credit card insurance would allow you to continue to get coverage on that item for up to 24 months.
Example card with extended warranty coverage: |
This credit card insurance will refund the difference in price if you buy an item and then find it at a lower cost at the same store or somewhere else. You typically have a window of around 60 to 90 days after you buy an item to make a claim. You’ll likely have an annual limit or a lifetime limit on the amount you can claim with this type of coverage. You should also note that many items are typically excluded from coverage, including food and other perishable items. So check with your credit card issuer to find out the details for your card.
Example card with price protection: |
Trip delay insurance is paid to help cover any necessary expenses you incur if your carrier delays your trip. Expenses covered under this type of credit card insurance can include meals, lodging, medication, toiletries and ground transportation. Your trip must be delayed for a minimum amount of time, usually at least 4-6 hours, in order to qualify.
Example card with trip delay insurance: |
This type of credit card insurance covers expenses incurred when you have to cancel or return home from a trip unexpectedly due to an emergency. Eligible emergencies could include severe illness or death of the insured person or his/her travel companion, missed flight connections, business meeting cancellations or travel warnings issued by the Government of Canada.
Example credit card with this type of insurance: |
Lost or damaged baggage insurance compensates you if your baggage and its contents are permanently lost, stolen or damaged. This credit card insurance covers the personal items within both your checked and carry-on luggage, which could include jewelry, watches, cameras and cell phones.
Example card with lost or damaged baggage coverage: |
Delayed baggage insurance reimburses you for essential items you purchase while waiting for your luggage to arrive if an airline temporarily loses or misdirects your baggage. Eligible expenses usually include clothing and toiletries. Coverage often runs from $500 to $1,000 per insured person and/or trip, and can only kick in after your luggage has been lost for a minimum amount of time, which usually runs between 4-12 hours.
Example card with delayed baggage insurance: |
Car rental credit card insurance provides coverage for damage or theft to a rental car you payed for using your credit card. To be eligible, you usually have to decline signing on for the rental agency’s insurance plan. There are a few types of car rental insurance that can come with a credit card including collision damage waiver, personal accident insurance, personal effects coverage and supplemental liability insurance. Check with your credit card issuer to find out exactly what they offer.
Example card with car rental insurance: |
Emergency evacuation insurance provides coverage for the cost of evacuation or transport to a care provider should you or an immediate family member become injured.
Example card with emergency evacuation insurance: |
Hotel and motel burglary credit card insurance will cover your personal items if they are stolen from your hotel or motel room, as long as you’ve booked your hotel using your credit card. Like with any coverage, there are limits to what your credit card issuer will cover. For example, they may not reimburse you for the theft of cash or travel tickets. Eligible items will be covered up to a preset limit, such as $500 or $1,000 per trip.
Example card with hotel/motel burglary insurance: |
Although quite rare, this type of credit card insurance covers any loss or damage to your mobile device or tablet, as long as you bought your cell phone on your credit card. You’ll be covered for the cost of your phone, minus the value it’s depreciated since you purchased it. The maximum amount you could be reimbursed is usually $1,000. Keep in mind that the coverage may not last longer than a couple of years. Batteries and phone accessories are typically not covered either.
Example card with mobile device insurance: |
Roadside assistance credit card insurance typically covers the costs associated with emergency services for your vehicle like towing, battery boosts, door unlocks, tire changes, gas delivery and more. Depending on the credit card you chose, you could be limited to the number of service calls you make in a year. For example, you may only be covered for 4 calls per year. This type of credit card insurance is often offered 24/7 across both Canada and the US.
Example card with roadside assistance: |
Emergency medical coverage provides coverage for the cost of evacuation or transport to a care provider should you or an immediate family member become injured while traveling. If you’re a frequent traveler, this is definitely one type of credit card insurance coverage you’ll want to consider getting. Coverage is usually offered for trips lasting no longer than 31 to 60 days. Also keep in mind that some credit card issuers will reduce or even drop this type of coverage if you’re over 65 years old.
Example card with emergency medical: |
Many standard credit cards offer some kind of complimentary insurance. However, you can usually find the best insurance on premium gold and platinum credit cards, which often include a range of extra perks that standard cards don’t. Because of those extra perks, these premium cards often come with higher annual fees. However, you should keep in mind that the savings you’ll receive from your credit card insurance could potentially outweigh the cost of the card, especially if you travel frequently.
It depends on your coverage needs. Your credit card might only cover a few areas, such as car rental and luggage delays. What’s more, most credit card insurance policies only cover up to a certain dollar amount per year or only a certain number of days abroad. Plus, there are plenty of stipulations in a credit card travel insurance contract that you’ll need to meet such as paying for all or most of your trip on your credit card.
If you’re a frequent traveller for business or for pleasure – whether alone or with your family – a credit card might not offer enough insurance to effectively cover you throughout the year. In this case, you’ll want to supplement with other options like separate insurance or upgrade your credit card plan to a premium option if possible.
Compare credit cards with insurance
The eligibility requirements for credit card insurance vary depending on the specific policy, the provider and the insurance company that’s involved in underwriting it. You can find specific details in your credit card’s travel insurance contract. In general, the most common conditions include:
Generally, immediate family members are eligible family members. This includes your spouse and eligible children. Some policies will extend protection to more than just your immediate family, but it ultimately depends on the provider’s specific insurance agreement.
While definitions of “spouse” and “dependent children” will likely vary between insurance policies, here are a couple of popular examples:
Most credit card companies ask customers to follow these steps to file an insurance claim:
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Compare by reviewing your insurance coverage needs along with your spending habits and financial needs. Here are some factors to consider:
If you’re interested in taking advantage of complimentary credit card insurance, make sure you consider the following policy details:
Credit card insurance offers a host often overlooked perks cardholders can be taking advantage of. Remember to read through your policy for any coverage limitations, and to make sure you’re getting the most out of your card when you cash in on your credit card insurance. Start by comparing a range of options so that you can choose a credit card that offers value based on your financial circumstances and lifestyle needs.
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Apply for a secured card with this reputable provider to start rebuilding your credit.
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Tangerine’s Visa Debit Card comes with unlimited free transactions. It allows users to safely shop online and make purchases while abroad like a credit card wherever Visa is accepted.