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Our pick for purchase protection: Chase Sapphire Reserve®
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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 for up to three months generally. The terms and conditions for purchase protection vary between cards and affect what purchases are eligible, how long the insurance period is and what the claim limits are.
Taking advantage of purchase protection is relatively simple – if you purchased an eligible item with your credit card, you can file a claim for compensation if it’s damaged or lost under the terms of your issuer’s protection plan. However, if you have primary insurance that covers the item in question, you’ll need to make a claim there first.
Most retail purchases will generally be covered, but you should carefully read the terms and conditions to find out exactly what applies. Perishables or consumables are typically excluded. Motor vehicles and vehicle parts could also be excluded.
Bear in mind that the exact details and requirements of your purchase protection plan can vary between each network. Here’s a quick breakdown of each network’s plan, though you’ll want to read your guide to benefits for more details.
| Mastercard | Visa | American Express | |
|---|---|---|---|
| Length | 120 days, or 90 days for New York residents | 90 days | 90 days |
| Coverage | $1,000 per claim. $50,000 in total per cardholder | $500 per claim. $50,000 in total per cardholder | $1,000 per claim. $50,000 each year |
| Types of damage covered | Theft and damage | Theft and damage | Theft and damage |
| Eligible cards | Eligible World and World Elite credit cards | Eligible Visa Signature credit cards | All cards |
The claims process differs depending on your credit card provider and the insurance company, but generally involves the following steps:
Some credit cards may also provide the following complimentary insurance covers for your purchases:
When considering purchase protection insurance, you should keep in mind that purchase protection policies are generally similar across all eligible cards from a network. As such, you’ll want to look at other factors to make your decision, such as:
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.
Unlike travel-specific perks such as airport lounge access and complimentary travel insurance, you can enjoy your purchase protection insurance on a day-to-day basis. When deciding if it’s something you actually need, it’s important to consider the costs of the card and whether this feature will be worth it in the long term. Compare credit cards to find one that best suits your purchasing needs.
