Several credit card companies provide optional enrollment plans known as payment protection plans or card protect plans to their customers. These plans offer relief to the customers who fail to make payments due to unfavorable circumstances like an extended illness or loss of job. The company provides a safety blanket to customers in exchange of a specific amount of annual payment. In majority of cases, the amount charged annually is based on the balance of customer.
During the last few years, credit card debt has witnessed a considerable increase. This has led to disastrous consequences both for the card issuers as well as card holders. Ultimately, it leads to non-payment of credit card debts thereby leading to payment defaults. Therefore, credit card companies offer payment protection plans that help them tide over defaults. Since these plans are optional in nature, it ultimately depends on the discretion of a customer.
In general, a payment protection plan offers a basic cover to the credit card holder who fails to clear his/her credit card debt due to an unexpected happening like unemployment, sickness or any other unforeseen incident. The aim of such policies is to provide financial assistance to a credit card holder if he/she loses income and fulfills the policy criteria. After a detailed research, the insurance companies have arrived at a quarterly or annual premium that is charged to the holder of a credit card. Normally, it is a certain percentage of the outstanding balance on a specific credit card, and the insurance premium is charge each month and appears on your credit card statement as a charge.
The credit card companies provide such insurance plans throughout the year. Generally, such companies abide by all the principles of insurance cover. Therefore, it may be in the interest of credit card holders to opt for such a payment protection cover.
Often, consumers are worried as to how they would cope with credit card commitments if they lose their income. This is where credit card payment insurance offers protection against such events. Such policies offer financial protection if the credit card holder loses his/her income/job and is unable to make the usual repayments. Generally, it is based on sickness, accident or/and unemployment issues. The policies can be taken out with an independent PPI provider or a credit card company. You should always ensure that you are not paying too much for the credit card insurance, and that you can actually collect under the insurance as much exclusion apply.
For more information regarding Payment Protection Plan , please visit www.ppiclaimline.com
Does your primary car insurance extend to rental cars?If so, does it really cover all expenses of an accident?
Ever since I switched to Geico, I have verified with them that my car insurance policy extends to rental cars whenever I rent them out. Which is great, because it saves me money by waiving all the extra rental companies insurance surcharges per day. However, a recent alamo agent informed me even though i maybe saving money and my primary carrier extends to the rental car sometimes geico may not cover everything. Such as "time of replacement." The time lost to the rental car company when geico works out the replacement of a total loss rental car. This maybe a hoax for me to buy alamo insurance, but I wanted to know from those experienced should I worry? Does primary insurances really extend to rental cars and do they cover everything i may encounter if I was in an accident? Would my credit card rental car accident insurance cover what my primary wouldnt cover? Curious...thanks
Answer
There are two types of coverage on your auto policy, liability, and physical damage (that would be collision and comprehensive). In most states, the liability will carry over onto a TEMPORARY SUBSTITUTE vehicle, such as a rental car. Physical damage does NOT necessarily carry over, though.
In either case, LOSS OF USE for the rental car, while it's in the shop, is NOT covered under your policy. In my experience, if you return a car with a scratch, the "loss of use" time for repair is about 3-4 days, and your credit card WILL be charged for that 3-4 days, EVEN IF THE REPAIR IS NEVER MADE.
So, primary insurance FOR THE NAMED INSURED will carry over in most cases, for liability coverage. In many cases, also for collision and comprehensive (although some companies like Progressive specifically do NOT transfer physical damage to a temporary substitute vehicle). But loss of rents is NEVER covered.
You'll have to check with your credit card company, but I've never heard of one covering loss of rents, either.
Now, the bottom line - I do NOT recommend my clients buy that waiver coverage they like to sell, UNLESS you're renting a vehicle out of the country. Then, the whole international thing is just too much of a pain to deal with (I'm NOT going to tell you horror stories, but it's bad), and just to save the $5 a minute international charges to Europe, you're going to want to buy it.
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