How do I insure my money?
My question has two parts.
How can I insure cash abroad? I looked at travel insurance but this focuses mainly on medical and cancellations. If I am mugged on the street, is there any way to claim this money back?
Is my money in my bank account insured? I have read stories about 'express kidnappings', where they hold you until they can empty your bank account. Can I expect to recover the money stolen?
I am from UK if that makes any difference; and I will be travelling to south america.
Best Answer
You have quite some angles to your question. You can insure cash, but not all of these solutions would cover you in case you are "kidnapped".
- There are of course the Traveler cheques I used them a lot before internet cafe's started to be default at almost any touristic location. I haven't used them for while due the hefty fees involved using them. A quick check at the website of my banks shows that they still being sold. If you lose the cheques you will get new ones sent to you almost immediately.
- As it is already said in the comments, you bank might have additional security measurements in place. The moment I report my credit and debit card to be stolen or lost, all transaction following will be covered by the bank.
- The measurements would not help you in the case you are kidnapped. I could be wrong but I prefer to trust the world a bit more. If I would get into such a situation, I would consider getting my money back the least of my problems. But again, I could be wrong. A possible counter measurement is to work with shadow bank accounts. You just have a bank account filled with some cash. This bank account could then act as an account to be "robbed", while you keep the details of your actual bank account hidden. You don't need to have much money on it. You wouldn't be the first with only 100 euro remaining on their bank account while backpacking, so it is a legitimate story to tell to kidnappers.
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Quick Answer about "How do I insure my money?"
How much money can you put in a bank and have it insured?
The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. The FDIC provides separate coverage for deposits held in different account ownership categories.What is the safest way to protect your money?
Savings accounts are a safe place to keep your money because all deposits made by consumers are guaranteed by the FDIC for bank accounts or the NCUA for credit union accounts. Certificates of deposit (CDs) issued by banks and credit unions also carry deposit insurance.What does it mean for your money to be insured?
An FDIC insured account is a bank account at an institution where deposits are federally protected against bank failure or theft. The FDIC is a federally backed deposit insurance agency where member banks pay regular premiums to fund claims. The maximum insurable amount is currently $250,000 per depositor, per bank.How much is money insured?
A: The standard deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category.Insurance Explained - How Do Insurance Companies Make Money and How Do They Work
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