I have savings and don't need to borrow money, but still need a credit card for those payments that can't be made otherwise: primarily car rental and some online purchases. I've noticed that many credit cards are associated with insurance services. Why are those products (that are frankly quite distinct) linked? And as a customer, is it good for me to buy credit card + insurance as a linked product, or to take a "no-quirks" credit card and buy insurance separately?

(the only relevant insurance I'm really interested in is one for emergency medical expenses abroad. At the same time, this seems to be included only in the most expensive plan)

  • 1
    The insurance is more about the card issuers making money rather than you benefiting from it(the illusion of benefits for you).
    – DumbCoder
    Commented Feb 20, 2014 at 17:28

1 Answer 1


I believe the insurance you are talking about is the type of insurance that makes your payment in the event you can't pay due to some specific reasons.

These types of insurance are profit centers for the credit card companies and are generally not worth it for the consumer. You are better off picking the best credit card that meets your needs and then finding your insurance needs separately. Typically, the best credit card payment insurance plan is to not carry a balance and have a reasonable emergency fund. Putting the money that would have gone to insurance towards those two goals will likely help you more than paying for the credit card insurance policy.

  • Right. I tent to take insurance only when potential expenses exceed any emergency fund I can put together (such as for medical costs), or when the insurance is collective and includes a degree of solidarity (such as for unemployment or medical costs).
    – gerrit
    Commented Feb 20, 2014 at 18:17

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .