New Card

cantthinkofanickname

Have just got a A&L CC. Tested it OK. They asked me if I wanted the insurance cover (protection for £30/year?).

Is it worth it?

What does it cover that the basic service/rights cover anyway?

lisyloo

Depends what sort of protection you mean.

They may have offered you
1) payment protection for making your payments if you are out of work/off sick (personally I think it's better to get insurance for your income and not loads of seperate policies for each individual bill).
2) card protection e.g. if they get lost or stolen
3) identity theft protection

Personally I don't take out any of these but I'm very cardful with my belongings and id.

DestroyingAngel_2

For £30 a year, that would be the policy that covers all your plastic cards in the event of theft or loss, plus several other benefits. With A&L, it would be called Card Alert, and it's provided by CPP. Basically, if you lose your purse/wallet with your cards and money in it, you simply call CPP and they will report the loss and order replacements for you. You pay the first £25 but you can get a replacement purse/wallet/handbag/bag to the value of £200.

You can also claim up to £5000 for the replacement of lost travel tickets. This is again a loan, subject to status and repayable within 28 days. If your
luggage goes astray, you can claim up to £200 to get them delivered to you directly.

Also, if you lose your housekeys, CPP has a barcoded keyfob which you should attach to your keyring. So (depending on honesty), whoever finds your keys can just post them and they will come back to you safe and sound. If you lock yourself out of your house by mistake, CPP will send a registered locksmith to get you into your house and repair any damage done.

If you move house, you can just call CPP and they will let all the relevant authorities know (eg council tax, utility bills, bank etc).

Abroad: if you lose your cards abroad, you can claim up to £3000 as a hotel bill advance. This would be a loan, subject to status and repayable within 28 days. You can also get a cash replacement of £200. Your passport and driving licence can also be registered, so in the event of loss with your card/s, you just need to call CPP and they will tell you the details of the documents you lost, and point you in the right direction for the nearest British Embassy so you can get your documents replaced. For emergency passport/drivers licence replacement, you can claim up to £200.

That's just a few of the benefits of having your cards protected. Most people don't listen beyond the "loss or theft" bit that the rep says, so they miss out on the rest of it. You may have household insurance that provides a similar protection, however, remember that if you claim on your household insurance, your premium will go up the next year. Also, some household insurances do not cover you if the loss occurs while you're abroad.

Card protection has its adherents and its detractors. What's important is that you weigh up the pros and cons for yourself and not simply go with the loudest voice.

Your basic rights are - you're not liable for any fraudulent activity on your card under the Banking Code. You're covered, in the event of non-receipt of goods/faulty goods/liquidation etc, under Section 75 of the Consumer Credit Act 1975.

cantthinkofanickname

Thanks for your comprehensive reply. Do you represent these CC insurers in any way? I will be looking at the conditions as I am a low user of cards and never incur debt with them if I can help it.

DestroyingAngel_2

Hi cantthinkofanickname,

No, I'm not with CPP, and you can check the policy clauses out on their website www.cpp.co.uk. A&L will sell you the policy, but the pack comes directly from CPP and will have further details, including exclusions and restrictions, phone numbers to call, renewals policy etc.

This type of protection is not to cover your debts (for that you'd be taking out Payment Protection). Card protection will protect your cards regardless of whether you have a 0 balance, or owe thousands of pounds. Don't forget that with Card Alert, your debit and store cards are also protected, in fact, you can protect your NINO card, your Blockbuster Video card, library cards, etc ... or indeed any card means anything to you.

Forgot to add - Card Alert is a household policy and will protect not only you, but also up to 4 other members of your household. Which is handy if you have a partner, or grown-up children still living at home, or if you live with your parents.

cantthinkofanickname

Then as I'm not too exposed, I do not think this is for me.