What is Credit Card Mobile Phone Insurance?

Next to your wallet, your mobile phone is the most important thing in your back pocket. It’s what keeps you connected, entertained, and knowledgeable. That said, your cell phone is still susceptible to damage, loss or theft. Considering how valuable they are to us, losing or breaking your phone is extremely frustrating and sometimes, financially draining.

So, what if we told you you can keep your cellular sidekick covered with your credit card? That’s right! Several Canadian credit cards offer coverage against specified mobile phone damage and loss. In this post, we’ll go through everything you need to know about credit card mobile phone insurance, plus some covered cards worth considering.

How Credit Card Mobile Phone Insurance Works

Credit card mobile phone insurance covers your phone against certain types of damage, loss, and theft. For a better understanding of what mobile phone insurance is, you’ll want to read up on how it works.

Make Sure You’re Insured

Let’s start with eligibility. To be eligible for mobile phone insurance, you’ll need to pay for your mobile phone (either fully or partially) with the credit card that offers mobile phone insurance. In cases where your cellphone is subsidized by a carrier (if you paid nothing upfront and are paying off your phone alongside your plan), you’ll have to regularly pay for your monthly cell phone bill using the same covered card.

Wait For Coverage to Take Effect

Oftentimes, mobile phone coverage takes some time to take effect. You can expect an average wait time of 30 to 90 days after the purchase of your device (or a certain point in your billing cycle) before your mobile phone insurance begins. This will ultimately depend on the card, so it's important to check your issuer’s insurance terms and conditions for specifics.

File a Claim

We’ll go into more detail on how to file a mobile phone insurance claim later on in this post. But for now, know that you’ll need to be ready to make a claim by phone call or online account (often it's best to call the number on the back of your card for your card’s specific claims process). You’ll also want to be prepared to pay a deductible. 

Deductibles are the amount of money you’re expected to pay before your insurer will reimburse a claim. The amount you’ll pay for a deductible depends on the purchase price of your phone or a specified percentage – it's all up to your credit card issuer. There’s also a depreciation value to consider, which basically accounts for how much your phone lowers in value over the years. 

What’s Covered by Credit Card Mobile Phone Insurance

Now that you have a better grasp on how mobile phone insurance works, we’ve crafted a list of common cases covered by mobile phone insurance plans:

• Accidental damage: for example, if you’ve dropped your phone on concrete or into the ocean, causing internal damage
• Loss: if you’ve gone on a trip and left your phone behind between transportation, to the point where it’s no longer retrievable
• Theft: worst-case-scenarios when someone stole your phone from your bag or hotel room

We kept these cases general because it’s best to consult your insurance certificate to read up on what your card covers explicitly.

Regarding how much coverage you’ll receive, you can expect an average maximum value of $1,000 for most covered cards. If your phone can be repaired after the damage, you’ll be reimbursed up to your card’s specified insurance cap. If the phone was lost or stolen, you may need to purchase a replacement of the same make and model. 

What Isn’t Covered by Credit Card Mobile Phone Insurance

Let’s begin with the obvious. You won’t be covered by your credit card’s mobile phone insurance if you intentionally break your phone – so try not to do that.

Loaner phones are also not covered in the meantime while you wait for your claim to be approved. So, it might be a good idea to hang onto your old phone as a backup. 

Always refer to your credit card's insurance policy for specific exclusions. That said, here are some more common factors that will make your phone ineligible for credit card insurance coverage:

• If the mobile device in question was purchased for resale purposes
• In some cases, if the cell phone is used (meaning purchased as used from an unauthorized third-party marketplace)
• If the mobile phone has been modified by the user (meaning phones that have had any software alterations)
• If the damage is considered cosmetic and doesn’t affect the device’s functionality
• If the phone was purchased and paid for by another credit card without the specified coverage
• If the phone experiences expected wear and tear

How to File a Credit Card Mobile Insurance Claim

We’re bringing it back to filing credit card insurance claims. To properly file a claim for a lost, broken, or stolen phone, consider taking the following steps:

Read Your Insurance Coverage Certificate

We’ve said it before and we’ll say it again, you must read your credit card’s insurance certificate closely before filing a claim. This certificate will inform you of all the coverage’s terms and conditions and the timelines you’ll need to follow to submit eligible claims.

For Stolen Mobile Phones

If your phone was stolen, file a police report immediately. You’ll also want to cancel all services linked to your device. Otherwise, after a certain amount of time (typically 48 hours), your claim might become ineligible.

Collect Related Documents

Grab a folder! There are several documents you’ll want close by when making a credit card mobile phone insurance claim. These documents might include:

• The original purchase receipt of your cell phone
• A copy of the original manufacturer’s warranty
• A record of the repair estimate for the damaged device
• An account statement that shows the price at which you purchased the phone
• The date and time the provider was notified of the incident
• A police report in the case of theft

It’s also helpful to know your mobile phone’s make and model, plus your phone carrier. Additionally, you’ll want to have payment ready for the inevitable deductible.

Connect With the Proper Contacts

Sometimes, you’ll be required to file a claim through your card issuer. Other times, if the card is covered through a specific card network, you’ll need to file directly with them instead. Depending on who you need to file a claim to, you can either file by phone or through an online account affiliated with your insurer.

The best way to decipher who to contact for a credit card mobile phone insurance claim is to call the number provided on the back of your card, or as always, check your card’s insurance certificate.

Best Credit Cards That Offer Mobile Phone Insurance

Typically, credit card mobile phone insurance is considered an added perk to a credit card and doesn’t necessarily determine which card you’re going to pick overall. Ultimately, you’ll want to pick the best card for your spending levels, spending habits, and lifestyle. 

If you don’t mind an annual fee (especially when there’s the potential for major annual rewards), are looking for one of the highest points earning rates on popular everyday categories, and want to indulge in Amex offers and benefits, then the Cobalt Card is a phenomenal credit card from American Express that's equipped with mobile phone insurance.

Also in the Amex network but much more affordable, the Scotiabank American Express Card comes with no annual fee, plenty of rewards through Scene+ points, a high first-year value, and mobile device insurance.

If you're worried about an Amex card not being widely accepted, or if cashback is more your reward style, moderately-priced cards like the Desjardins Cash Back World Elite Mastercard offer high cashback earn rates for average spenders, and World Elite travel perks, on top of mobile phone insurance. For a Visa alternative, there’s also the Scotia Momentum Visa Infinite Card offering the highest cashback rates in popular categories, and extensive insurance coverage that includes mobile phone insurance.

Finally, if you’re looking for a card with above-average coverage, look no further than the RBC Avion Visa Infinite Card. With up to $1,500 in mobile device insurance (that’s $500 more than usual), a generous welcome bonus, high air travel point value, and Petro-Canada perks, this card is a top contender.

Is Credit Card Mobile Phone Insurance Worth it?

It’s not uncommon for cell phones to break or go missing, we use them all day every day. Still, you’ll ultimately want to select a credit card that provides the most benefits, coverage, and perks that complement your habits.

That said, if you sift through credit cards and happen to find one that meets all your expectations, plus offers mobile phone insurance – then that’s definitely the perfect card for you.

Many people spend lots of money on their mobile phones, so coverage of up to $1,000 could be something on the top of your credit card wish list – particularly if your phone’s manufacturer warranty isn’t the best.

Conclusion

Most credit card mobile phone insurance policies cover your cell phone if it’s lost, stolen, or broken. To be eligible for coverage you’ll want to make sure your phone is paid for in some approved capacity by the covered credit card. In case you do need to file a claim, make sure you read your insurance certificate for instructions, gather the necessary documentation, and prepare to pay a deductible.

Overall, having credit card mobile phone insurance is helpful to those with expensive phones that are always vulnerable to unexpected incidents.

Frequently Asked Questions

How does phone insurance work with a credit card?

Many credit cards offer mobile phone insurance as an added perk. The coverage is included in the cost of the card’s annual fee (if any). Most credit card mobile phone insurance will cover damaged, lost, or stolen cell phones up to a specified amount. 

What is the purpose of mobile phone insurance?

Mobile phone insurance protects you from having to empty your pockets when your cell phone is broken, lost, or stolen. Certain credit cards will provide capped coverage for incidents outlined in their insurance certificates. Since mobile devices can be quite expensive, it's helpful to have some type of coverage in case the unexpected occurs.

Does insurance cover if you lose your phone?

Some credit cards cover certain cases when your phone is lost. That said, every card’s mobile phone insurance policies may differ. The best way to be informed about what your card covers is to read the provided insurance certificate.