What is Credit Card Extended Warranty Insurance?

Everyone wants their purchases to be protected. When you invest in something, you’re hoping that investment will last. That’s when manufacturer warranties become so helpful. They ensure that the products you buy are held to high standards, and if they ever fail to meet those standards, you can have peace of mind knowing your eligible purchase will be repaired, replaced, or refunded.

So, what if we told you your credit could prolong this type of protection? 

Most credit cards come with extended warranty insurance, a perk that expands the lifespan of your manufacturer’s warranty by a specified amount of time (depending on the card). With this extension, you can shop with extra ease knowing that you’ll be well-covered should you encounter any defects post-checkout. 

How Credit Card Extended Warranty Insurance Works

Let’s say you bought a brand new TV for your apartment. Just to be safe, you made sure you purchased it with a one-year manufacturer’s warranty, and were pleased to make it through the first year without any problems. Suddenly, in month 15, your TV screen begins to display harsh lines and pixelation until the screen ultimately goes blank. You feel a bit panicked since you know the manufacturer’s warranty is expired, but then you remember hearing something about most credit cards offering a warranty extension.

If you ever find yourself in a similar situation, here’s how your credit card could save the day.

Make Sure You Purchased the Product on an Eligible Card

The only way you’ll be covered by your credit card’s insurance policy after the manufacturer’s warranty has run its course, is if you purchased the defective product using a credit card equipped with extended warranty coverage. So, if we refer back to the TV scenario above, you’d want to double-check that when you bought the TV, you did so using a covered card. 

When You Can Expect Your Credit Card Extended Warranty to Kick In

Your credit card’s extended warranty coverage will take over once the initial manufacturer warranty has expired. So, if you relate back to the scenario above, since the TV’s original warranty expired, you could file a credit card extended warranty claim.

Always check the manufacturer warranty timeline to know exactly how long you’ll have before you’ll need to rely on your credit card's extended warranty policy. Warranties will vary from product to product.

Sometimes, specifically with higher-end products, you may even be required to register your purchase for the warranty to be effective. If so, you’ll need to make sure you’ve properly done so in order for your credit card’s extended warranty to be activated later on. You can establish whether this is required through the specific warranty terms that come with the product.

Keep What’s Covered in Mind

When using credit card extended warranty insurance, you’ll want to make sure you know what was covered by your manufacturer’s original warranty, and confirm that the issue at hand corresponds to one of these conditions.

The reason for this is that your credit card extended warranty insurance will match the original coverage, offering the same terms for a longer period of time. Most credit cards double the manufacturer's warranty up to a year, but this can vary between credit cards. In some cases, items might come with a warranty from a third party, for example if you make a purchase on Amazon. Most of the time, credit card extended warranty insurance will not extend any layered warranty previously extended by the manufacturer or offered by a third party (unless the terms are the same as the original manufacturer's warranty). Always consult your card’s terms and conditions for the most accurate information.

File a Claim

Once you’ve confirmed you made the purchase using an eligible credit card, are familiar with the timeline in which your credit card extended warranty is eligible, and know what type of coverage you can expect, file a claim with your credit card issuer as soon as possible. Later on in this post, we’ll go over all the potential steps in this process.

Once your claim has been approved, you'll find out whether your item will be repaired, replaced, or reimbursed. Each warranty will come with maximum coverages, usually no higher than the covered item’s original price. Check your credit card’s terms and conditions for specific coverage limits.

What’s Covered by Credit Card Extended Warranty Insurance

Now that you have a general idea of how credit card extended warranty works, let’s quickly go over what’s covered by this policy.

Note that since the extended warranty mirrors the original manufacturer’s warranty, only defects outlined by the manufacturer’s warranty will be insured. Typically, some common occurrences that your extended warranty could cover are manufacturing defects, specifically damages acquired in the construction of the product causing it to malfunction, or internal Issues, usually due to mechanical or electrical failures.

For the best understanding of what your credit card extended warranty insurance will cover, always consult your manufacturer’s warranty first.

What’s Excluded from Credit Card Extended Warranty Insurance

First, there are some products that likely won’t be covered by your credit card extended warranty insurance, these products might include:

• Motorized vehicles
• Jewelry
• Used items (either previously owned or refurbished for resale)
• Perishables or consumables
• Digital content

Typically, you also won’t receive coverage if any damage was the result of:

• Expected wear and tear
• Misuse
• Weather or natural disasters
• Accidental breakage 
• Improper installations or modifications

For more information on inclusions and exclusions, take another look at your manufacturer’s warranty and your credit card’s insurance policy.

Best Credit Cards for Extended Warranty Insurance

Most credit cards come with extended warranty insurance. To pick an extended warranty insured credit card that’s right for you, you’ll want to consider your spending habits, your financial needs and goals, plus any other added perks and coverage that would be beneficial to your lifestyle.

If you’re looking for the best of the best, the American Express Cobalt Card (often referred to as Canada’s best credit card) comes with high-earning, flexible rewards, and extensive insurance coverage, including extended warranty insurance for up to a year.

If you prefer no-fees, cashback rewards, and are a Rogers, Fido or Shaw customer, the Rogers Red World Elite Mastercard has some outstanding earn rates, trip interruption and trip cancellation insurance (which is rare for a no-fee card), plus up to a year of extended warranty coverage.

If Visa is your preferred network, then the CIBC Dividend Visa Infinite Card is a well-rounded choice for high-earnings on everyday purchases, some travel coverage, and up to a year of extended warranty insurance.

To find a credit card that caters to you and comes with extended warranty insurance, check out our Best Credit Card Finder and make use of the “Insurance” filter where you can select “Extended Warranty” for a comprehensive list of all the credit cards that feature this coverage. Add additional filters that adhere to your preferences and habits, and you’re sure to narrow down some top contenders.

How to File a Credit Card Extended Warranty Insurance Claim

As previously mentioned, once you notice a defect on a covered product, you’ll want to contact your insurance provider immediately either by phone or online. Many issuers have specific timelines you need to follow in order for your claim to be approved (usually within 60 to 90 days), so you’ll want to check how much time you have by reviewing your credit card’s insurance policy. 

If you’re unsure of who to contact, dial the number on the back of your credit card for customer support or take another look at your credit card’s insurance certificate.

To make a successful extended warranty insurance claim, the following documentation may be requested of you:

• A copy of the original purchase receipt
• A copy of the original manufacturer’s warranty, including proof of its expiration
• A credit card statement confirming the purchase was made with the eligible card
• Any repair cost estimates when applicable  
• A claim form when applicable 

Conclusion

Since it’s included on most credit cards, credit card extended warranty insurance is absolutely worth it to keep your purchases protected. This insurance policy provides your expenses with extra security for much longer than expected. The reality is, sometimes things break, and especially when the damage is out of our control, it's nice to be able to claim some type of protection to avoid paying more out of pocket.

Frequently Asked Questions

What’s the difference between credit card extended warranty and credit card purchase protection insurance?

• Credit card extended warranty insurance prolongs the manufacturer’s warranty after it expires on covered products for mishaps like mechanical or manufacturing defects. 
• Purchase protection insurance takes place when a product is accidentally damaged, stolen or lost within a certain time frame after the purchase was made on an eligible credit card.

For more information on purchase protection insurance, check out our purchase protection blog post.