Urgent: Credit/Debit Card Purchase Insurance

A question about : Urgent: Credit/Debit Card Purchase Insurance

:-/

I must begin by sayin what a fantastic resource this is! I'm glad i've finally made the effort to register.

Right the question is regarding some credit card and debit cards which offer *free* purchase protection on "most" goods bought on them over Ј50.

How the heck can they afford to do this when for example Dixons charge Ј200 for a 1yr laptop policy!? Also, my debit card actually covers *loss* too? Has anyone made use of such insurances from card companies and do they work? What were your experiences and what should one look out for??

Thanks for your prompt replys. ???

Best answers:

• Maybe they can afford it simply because:
  - few people end up claiming?
  - you are not covered by the card if you have another policy which covers the same risk?
  - there are exceptions in the small print?
  - Dixons et al are selling quite outrageously overpriced insurance?
  - they have their risk underwritten by another insurer?
  - it attracts profitable business for the cards so they are willing to make a loss on the cover?
  Fortunately I have no experience of claiming under these policies.