Why Credit Card Purchase Protection Insurance (PPI) is Important
By: Matthew Lloyd | Posted: 05th July 2007
Most people hesitate in spending money in order to insure their credit cards. But little do they know the truth.
Thirteen thousand credit cards are stolen, lost, or misplaced every day in the UK. What if yours is one of them? Imagine if your card is stolen and the thief goes on a shopping spree? Theoretically, he can buy goods worth millions and leave you to pay the bills later.
Consider this for a bit:
- credit card fraud is now, annually, a four hundred million pound industry and growing everyday
- Internet credit card fraud is a fourth of that, at more than a hundred million pounds per year
The Home Office is involved and has already begun many programs to tackle this problem. Don’t you think its time you also woke up and figured out how to minimize your losses? By the time you realize your card is stolen or lost and you report it, you could have lost hundreds of thousands of pounds. The safest thing to do is get yourself a credit card purchase protection insurance plan or PPI.
The Benefits of a PPI
You need to only call one phone number the moment you realize your card is gone.
No need to memorize all the card numbers, your PPI company may have it on their records when you provide your reference number to them.
They might immediately de-activate your cards.
They often also send replacement cards.
If you are outside the UK, your travel insurance policy will often offer protection against lost credit cards. Even so, the PPI company is more effective in such cases as it may offer global protection for all your cards, 24x7.
Liability Coverage:
- You might get £1,000 for legal costs if your card has been used fraudulently.
- This is a significantly larger sum than the £50 you would have got from most UK cards.
- Frequently, you may also get £3,000 as emergency cash or £1,500 for each joint policy holder.
- Sometimes, you are given £3,000 as emergency payment for hotel bills if you are abroad.
- £100 is often given if you happen to lose some cash along with your cards.
- £200 is given sometimes to recover lost luggage.
- £200 might also be offered in order to replace passports or driving licences that were lost or stolen while you were abroad.
- £100 can be paid for calling the police and the insurance companies in order to inform them of your lost cards.
- £100 can also be paid for replacing handbags and wallets.
- Return tickets to travel home might be given to some customers.
Don’t you think its worth getting a PPI now for all your credit cards?
Matthew Lloyd writes for About Your Money. His articles provide users with useful advice on a variety of financial products, including credit cards. To find About Your Money visit www.aboutyourmoney.co.uk
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Tags: ppi, hundreds of thousands, credit cards, credit card fraud, spending money, hundred million, thief, hotel bills, protection insurance, shopping spree, insurance plan, emergency cash, liability coverage, reference number, travel insurance policy, card numbers, internet credit card