Best Credit Cards For Purchase Protection

September 13, 2016, Written By Jason Steele
Best Credit Cards For Purchase Protection

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There are few things worse having something valuable stolen or accidentally damaged soon after you purchased it. In some cases, you may be able to file a claim with your home owner’s or renter’s insurance policy, but often with a large deductible. Otherwise, most people would just have to absorb the loss. But thankfully, many credit cards offer a purchase protection policy that covers items paid for with your card. These policies can cover eligible items against theft or accidental damage in the months after purchase. But to use these policies you must comply with their terms and limitations, and submit a claim in a timely manner.

Here are some of the best credit cards for utilizing these purchase protection benefits:

Capital One Venture Rewards

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The Capital One Venture Rewards card offers a purchase protection policy that covers you against theft and accidental damage of eligible items within 90 days of purchase. The coverage is limited to $500 per claim and $50,000 per cardholder. To file a claim, call the benefit administrator at 1-800-553-4820.

The Capital One Venture Rewards also offers new cardholders 40,000 bonus miles after using their card to spend $3,000 within three months of account opening, and two miles per dollar spent on all purchases. Capital One miles are worth one cent as a statement credit towards travel purchases including airfare, hotels, car rentals and other travel reservations. There is a $59 annual fee for this card that is waived the first year, and no foreign transaction fees.

Citi Diamond Preferred

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The Citi Diamond Preferred card is one you want if you are looking for top notch purchase protection benefits and a competitive promotional financing offer. The Citi Diamond Preferred card’s damage and theft purchase protection policy also covers repairs or a refund if purchases made with your Citi card are damaged or stolen within 120 days of purchase (90 days for New York residents). After the promotional financing offer expires, the standard interest rate for purchases will apply, which is an APR between 14.99% - 24.99%* (Variable) , based on your creditworthiness.

In addition, this card offers a 0% introductory APR for 21 months on balance transfers (must be made within the first four months of card membership) and 12 months on purchases. And although it doesn’t offer rewards, it does include other purchase protection and travel insurance policies such as extended warranty coverage, trip cancellation and trip interruption protection, and worldwide travel accident insurance. There is no annual fee for this card.

Citi Prestige

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The Citi Prestige card offers excellent travel insurance and purchase protection benefits including one of the strongest and theft purchase protection policies offered by an credit card. Like the Citi Diamond Preferred card, this policy may cover you for repairs or a refund if purchases made with the Prestige card are damaged or stolen within 120 days of purchase (90 days for New York residents). It offers $10,000 of coverage per claim, with a maximum of $50,000 in claims per year. Excluded items include jewelry, cameras and video-recording equipment contained in checked baggage.

In addition to its purchase protection, this card offers strong travel rewards and a sign-up bonus of 40,000 points after new cardholders make just $4,000 in purchases within three months of account opening. You’ll earn 3x points on all travel and hotel purchases, 2x on dining and entertainment and one point per dollar spent on all other purchases. It also offers numerous cardholder benefits including medical evacuation coverage, last baggage protection, trip cancellation and interruption coverage and trip delay protection. In addition, it offers extended warranty coverage. You can even use Citi’s Price Rewind service to receive a refund if you find a lower price advertised for one of your purchases.

Other benefits include a Priority Pass Select airport lounge membership, a fourth night free hotel benefit and a $250 Air Travel Credit each year. There is a $450 annual fee for this card, and no foreign transaction fees.

The information contained within this article was accurate as of September 13, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.

About Jason Steele

Jason Steele is a freelance journalist and an expert on the credit card industry. He contributes to several of the top personal finance sites, and his work is syndicated to mainstream outlets such as MSN Money, Yahoo! Finance, and Business Insider.
View all posts by Jason Steele