Price protection cover

An insurance policy that protects you from losing money when an item you purchased drops in price
Price protection cover
3 mins

Price Protection Cover ensures you remain covered in case of price drops for your purchase. It provides compensation for the overpaid difference amount, which is reimbursed either through cash or store credits. This service helps you save money by assuring that you are not affected by a sudden change in prices.

Additionally, it helps you avoid the hassle of returning products to get a refund when prices drop. It is a reliable way to protect your investments and save money.

What is price protection cover?

Price protection cover is an insurance policy that protects you from losing money when an item you purchased drops in price. With this type of coverage, if an item you bought drops in price within a certain period, typically 60 to 90 days, you may be eligible for a refund of the difference in price.

Many credit card companies offer this type of coverage as a perk to cardholders. By buying with a credit card that offers price protection cover, you can ensure that you are protected against any price drops.

How does price protection cover work?

To benefit from price protection, you need to have purchased the item directly with a credit card that offers this service. If the price of the item drops within the predefined period, you simply submit a claim for a refund of the difference. The credit card company will examine your claim, and if it is found to be valid, they will refund you the difference between the purchase price and the reduced price.

Which credit cards offer price protection cover?

In India, credit card companies like HDFC Bank, Kotak Mahindra Bank, and ICICI Bank offer price protection coverage as part of their credit card benefits. Each credit card comes with its own set of terms and conditions, so you need to check these before signing up for a card. The coverage offered depends on the card's terms and conditions, and some cards may offer more extensive coverage than others.

What items are covered by price protection cover?

The items that are covered by price protection cover can vary from one credit card to another. However, the coverage provided generally applies to purchases made within India. Some exclusions may apply, such as purchases of second-hand items and purchases made on auction sites. Additionally, the price drop must be in the same currency as the original purchase.

What are the limitations of price protection cover?

Price protection cover comes with specific limitations that you need to be aware of before relying on it. Firstly, the coverage period is usually between 60 to 90 days, so the price drop must occur within this time frame. The maximum amount receivable in refunds is subject to the card's terms and conditions. Many cards have an upper limit on the amount that they will pay out per claim and per year, so you may need to use multiple cards if you need higher coverage.

How to claim a price protection benefit?

If you are eligible for a price protection refund based on your credit card's terms and conditions, and you have proof of the reduced price, you can begin the process of filing a claim. Here are the steps you need to follow:

  • Contact your credit card company: Begin by contacting the customer service number provided by your credit card company. The customer service agent will provide instructions on how to submit the claim and what documentation you need to provide.
  • Complete the claim form: Complete the claim form provided by the credit card company. The form will ask for details about your purchase, the price paid, and the lower price.
  • Submit your claim: Attach the necessary documentation to support your claim and submit it through the online claim portal provided by the credit card company.
  • Wait for processing: It may take several weeks for your claim to be reviewed and processed. Once it has been approved, you will receive a refund to your credit card account.

Price protection cover is a great benefit offered by some credit cards in India. It protects you from the financial loss that may occur when you purchase an item that later drops in price. Before deciding to rely on this coverage, be sure that you understand its limitations and restrictions. Check the coverage, terms, and conditions of your credit card, and keep all documentation associated with your purchases, including receipts and proof of the reduced price. In addition, you can purchase credit card fraud and debit card fraud prevention plan offered by Bajaj Finance Insurance Mall.

Note: While we do not offer price protection cover, we offer a card protection plan. To know more about the plan, click here.

Frequently asked questions

What is price protection on a debit card?

Price protection on a debit card is an insurance policy offered by some banks that protects you from losing money on your purchase when the price of the item drops shortly after your purchase. It provides coverage against financial loss due to a price drop and is available for a predefined period after the purchase date.

What is the difference between purchase protection and price protection?

Purchase protection covers you against lost or stolen merchandise or items that arrive defective or damaged. It is often included in credit cards as a perk, whereas price protection reimburses you for the difference in price should the price drop after your purchase. Purchase protection is intended to cover property loss and damage, while price protection covers financial loss due to price drops.

What is the price protection approach?

The price protection approach involves purchasing an item and keeping an eye on its price after the purchase. If the price drops within a certain period (usually 60 to 90 days), the buyer can file a claim to receive a refund of the difference from the retailer or insurance provider.

What is price drop insurance?

Price drop insurance is similar to price protection but is an insurance policy rather than a feature of a credit card. It works by ensuring that the buyer gets the best deal by offering reimbursement if the price drops within an agreed period. With price drop insurance, the buyer is insured against any losses resulting from the price drop.

How do you use price protection?

To use price protection, you need to follow these steps:
1. Purchase the item: Purchase the item you want to protect under the price protection clause using your credit card.
2. Keep track of the price: Keep track of the price of the item for a certain period, usually 60-90 days.
3. Find a lower price: If you find a lower price for the same item within the specified time frame, submit a claim to the credit card company.
4. Provide proof: Provide proof of the lower price, such as a sales advertisement or receipt from a competing store.
5. Await response: Wait for the credit card company to process your claim. If they approve the claim, you will receive a refund for the difference in price.

What is a price protection clause?

Price protection is a clause offered by some credit card companies that provides consumers with price protection on their purchases. This clause states that if a consumer purchases an item using their credit card, and the price of the item drops within a specified time frame, the consumer may be eligible for a refund of the difference in price.

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