Dropping a brand-new phone just a couple of weeks after buying it can leave you facing an expensive repair or replacement bill. But if you paid with a credit card that includes purchase protection, the card’s benefits may cover the loss instead.
Purchase protection can reimburse you if an eligible item you recently purchased with your credit card is accidentally damaged or stolen. The coverage period commonly ranges from 90 to 120 days after the purchase, although the exact timeframe depends on the card. Claim limits can also vary significantly, from around $500 on some basic cards to as much as $10,000 on premium cards, with certain products imposing annual maximums of up to $50,000.
Extended warranty protection can provide another useful benefit. On eligible cards, purchases covered by a manufacturer’s warranty may receive an additional year of protection, while some premium cards can extend coverage for up to two years. In many cases, there is no separate registration process or additional charge for the benefit.
However, these protections are not automatically available on every card from the same issuer. Benefits can differ from one card to another, and issuers may change, reduce or remove certain features over time. The benefits guide provided for your specific card contains the terms, exclusions and coverage limits that actually apply.
A good starting point is to review the benefits attached to every credit card you have. Check the issuer’s website or contact the number printed on the back of the card, then make a note of which cards offer purchase protection or extended warranty coverage. For expensive purchases such as electronics, household appliances or furniture, consider using the card that provides the most suitable protection. Keep your receipts and credit card statements, as these documents may be required when making a claim.
If an item is damaged or stolen, contact the card issuer or start the claim through its benefits service as soon as possible. Claim deadlines can be relatively short, and some cards may require you to report the incident within 30 days.
Before paying extra for a protection plan offered at the checkout, take a moment to check the benefits already included with your credit card. You may already have coverage that can protect your purchase without paying for an additional plan.
