Do Insurance Cover Gift Cards? See Answer

Last updated on January 29th, 2024 at 01:01 am

Gift cards are digital assets that serve as an alternative payment method at physical stores, gas stations, online, restaurants, etc. They are prepaid debit cards that are funded with money for future use.

gift card Nigerian Infopedia

Gift cards are usually used in brands that you frequently purchase from. They come in two forms; Physical and E-code. Gift cards have distinct designs depending on the brand. Although, They are general features that would be used on the identity cards such as; Currency and denomination.


Gift cards have now become widely accepted. However, an unfortunate turn of events can occur with these cards. In certain scenarios whereby your cards have either been stolen, misplaced, or destroyed you might be wondering if insurance would bear such a loss, and what type of insurance covers it. The short answer is: yes insurance does cover Gift cards, but not all of them. As we know, insurance companies are mostly specific in terms of their offerings. Some specialize in car insurance, health insurance, life insurance, and many more. There are a little of these insurance companies that care about subtle day-to-day items like gift cards as they are easily negligible.


Yes, there are insurance companies that cover loss on banknotes, stored value cards, smart cards, and similar cash-like items. Luckily, gift cards fall under this category; under this policy, it is known as stored-value cards.

The policy bears a partial loss for all items in this category that are worth $200 and below in certain events. There is a list of only 16 losses in which the insurance would cover. Some of these include; fire or lightning, windstorm or hail, explosion, smoke, vehicles, theft, vandalism, the weight of ice, snow or sleet, and others.


Tomiwa turns 25 today, his friends decide to get him a $250 worth of Steam gift card for his favorite gaming purchases, as his present. He probably plans to use it to make a purchase on Steam Website or sell it off for cash later on. But before then, they all go out to see a movie then have drinks after. At the bar, his car was jacked and the thief got away with his wallet and gift card. Luckily he had no money in his wallet and was able to block his ATM cards on time. Sadly, he lost the gift card. The insurance policy would bear 200 dollars worth of the loss and he’d have to incur the $50 difference.

Any loss not included on the list would not be covered by this policy. If Tomiwa had misplaced or he over-scratched his card, he would have to incur the loss all by himself. As a part of marketing strategy, some insurance companies have decided to increase the amount of coverage and also the list of covered losses. You might want to check the market and do some research on insurance companies and their specific packages.


There are many insurance companies that can be of help in cases like this. This guide is available so you can be aware of the possibility of the scenario. Now, you should have some sort of relief and extra assurance to purchase gift cards now. This is most likely the “Sign” you have been waiting for.

You can use the NIID Nigeria platform to check and verify insurance companies that offer such services before dealing with them.

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Oluchi Chukwu

Oluchi is a seasoned Information blogger, content developer and the editor of Nigerian Queries. She is a tech enthusiast who loves reading, writing and research

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