Find out which credit cards have purchase protection and what it covers

Safeguard your credit card finances with complimentary purchase protection insurance.

Last updated:

Purchase protection – sometimes referred to as purchase security or price protection – provides you with extra value and greater peace of mind when you choose to pay with plastic. It is a common complimentary credit card perk, especially when it comes to black, platinum and gold cards.

Inclusions will vary from card to card, but purchase protection usually offers insurance for up to three months when products bought with your card are lost, stolen or accidentally damaged.

Compare credit cards with purchase protection

Are you looking for a great card to put in your wallet that will give you peace of mind with every swipe? Check out these cards to find the one that best suits your needs.

Name Product Purchase Protection Cover Maximum Limit per Claim Annual Fee
American Express Cobalt Card
90 days
$1,000
$120
Earn 2,500 points with minimum spend of $500 for each billing period. Up to 30,000 bonus points in your first year.
TD Aeroplan Visa Infinite Card
90 days
The lesser of the repair cost or the purchase price of the insured item
$120
Earn up to 30,000 Aeroplan Miles (equivalent to 2 economy short-haul roundtrip flight rewards) and first year no Annual Fee for the Primary Cardholder. Apply online by March 2, 2020.
BMO World Elite MasterCard
90 days
The lesser of the repair cost or the purchase price of the insured item
$0 annual fee for the first year ($150 thereafter)
Offers 35,000 BMO Rewards bonus points with a minimum spend of $3,000 in the first three months of card membership. Ends January 15, 2020.
Scotiabank Passport  Visa Infinite Card
90 days
The lesser of the repair cost or the purchase price of the insured item
$139
Earn up to 25,000 bonus Scotia Rewards points in your first year of card membership. Plus, earn an extra 10,000 points with a min. annual spend of $40,000 on your card.
TD First Class Travel Visa Infinite Card
90 days
The lesser of the repair cost or the purchase price of the insured item
$120
Earn up to 80,000 TD Rewards Points, including a 20,000 welcome bonus when you make your first purchase with your card. Earn 5X the TD Rewards Points on all purchases up to a maximum of 20,000 TD Rewards Points per month, for each of the first three months. Plus, first year no annual fee for the primary cardholder. Apply online by March 2, 2020.
SimplyCash Preferred Card from American Express
90 days
$1,000
$99
Receive 5% cash back (up to $300 cash back) and a 1.99% balance transfer rate in the first 6 months to new cardmembers. No balance transfer fee upon application.
Tangerine World Mastercard
90 days
The lesser of the repair cost or the purchase price of the insured item
$0
Get a 1.95% interest rate on balance transfers for the first six months. Valid within the first 30 days of account opening.
American Express Business Edge Card
90 days
$1,000
$99
Earn up to 42,000 Membership Rewards® points in the first year of card approval. Offers 30,000 Welcome Bonus points when you spend $5,000 in purchases within the first 3 months of membership.
American Express AIR MILES Platinum Credit Card
90 days
$1,000
$120
Receive up to 3,500 bonus AIR MILES®. Conditions apply (Ends January 20, 2020). Offers 1.99% balance transfer rate in the first 6 months. No balance transfer fee upon application.
Shell AIR MILES Mastercard from BMO
The lesser of the repair cost or the purchase price of the insured item
$0
Get up to 800 bonus AIR MILES reward miles with minimum spend of $1,000 in the first three months. Ends January 15, 2020.

Compare up to 4 providers

Back to top

What is purchase protection and how does it work?

Purchase protection is a service provided by a credit card company that safeguards any eligible purchase made with a credit card against theft, loss or accidental damage. The terms and conditions for purchase protection will vary between cards and this will directly affect what purchases are eligible, how long the insurance period is and what the claim limits are.

  • Eligible purchases. Most retail purchases will generally be covered, but you should carefully read the specific terms and conditions to find out exactly what applies. Perishables or consumables are typically excluded. Motor vehicles and vehicle parts could also be excluded.
  • Insurance period. Purchase protection usually covers items for up to 90 days from the purchase date, but can extend up to six months with some insurers.
  • Claim limits. This also varies among insurers and cards, but it is typically limited per claim (e.g., $10,000 per claim) and per year (e.g., up to $50,000 per credit card account per year).

Some card providers will require you to “register” your products as you purchase them. If your card provider requires this and you haven’t registered your item, it will likely not be eligible for coverage.

How do I make a claim for credit card purchase protection insurance?

The claims process differs depending on your credit card provider and the insurance company, but generally involves the following steps:

  • Contact the insurance company. Depending on your insurer and policy, you may have to file your claim within a certain time frame — so don’t wait long.
  • Provide details of the claim. You have to show that the item was purchased in full using your credit card within the eligible time frame of coverage.
  • Submit any supporting documentation. Aside from original receipts, you may also need to provide other relevant documents such as police or incident reports.
  • Wait for a response. Your claim will usually take up to 14 business days to be assessed, after which you will be notified of the result and reimbursed if successful.

Other types of complimentary credit card purchase insurance

Some credit cards may also provide the following complimentary insurance coverage for your purchases:

  • Extended warranty coverage. This extends the warranty coverage for items purchased using your card, meaning that you can enjoy extended warranty protection beyond the manufacturer’s warranty period – usually up to one year more.
  • Price guarantee. You can claim the price difference for an item purchased on your card if you find it in another store nearby at a lower price within a certain period of time.
  • Refund protection insurance. Refund protection ensures that you can still get a refund on items purchased using your card even if the merchant refuses to process a refund.

Factors to consider when comparing credit cards with purchase protection insurance

When considering purchase protection insurance, you should keep the following factors in mind:

  • Claim limits. Most policies have an annual cap on purchase protection claims, as well as a cap on each individual claim. You may wish to look into protection for international purchases if you travel or shop online a lot.
  • Annual fee. Complimentary extras such as purchase protection are likely to come with a higher annual fee than a no-frills card with no annual fee. An annual fee may outweigh the benefits of complimentary extras – if you rarely or never use them.
  • Purchase rate. When considering any credit card, interest rates are very important, especially if you are someone who carries a balance from month to month.
  • Rewards. If earning rewards with your card is important to you, you should consider whether the card offers cash back, points or miles.
  • Cash advance rate and fee. If you withdraw money using your credit card or use your card for cash equivalent transactions – such as gambling or purchasing gift cards – you will likely be charged the cash advance fee, and face the cash advance interest rate.

Bottom line

Compared to travel-specific perks like airport lounge access and complimentary travel insurance, purchase protection insurance is something that most people can enjoy on a day-to-day basis – without applying for a prestigious travel card.

When deciding if it’s something that you actually need, it’s important to consider the costs of the credit card and whether this feature will be worth it in the long term.

Back to top

Frequently asked questions

Images: Shutterstock

Was this content helpful to you? No  Yes
Go to site