Best Credit Cards For Purchase Protection

Best Credit Cards For Purchase Protection

December 30, 2020         Written By Tracy Farnsworth

You’ve probably experienced something like this in your life. You buy a brand new laptop. It’s all set up and ready to use. You place it on the coffee table to take the dog outside. When you come back in, you trip on something on your way to the sofa. It could be the cat that’s winding around your ankle or that toy your little one didn’t put away. No matter what caused you to trip, you fall into the table and send your computer flying. The screen and hinges are broken, and nothing will return it to a like-new state.

In most cases, your best option is to file a claim with your homeowner’s or renter’s insurance. You’ll still pay a few hundred dollars or so with the deductible, but it’s better than paying for an entirely new computer. Of course, putting in a claim may raise your rates down the road. You have to decide if it’s better to swallow the cost. Before you do, stop to think about how you purchased that laptop. If you used a credit card, the credit card may have a purchase protection policy in place.

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Purchase protection is one of several perks cardholders receive when making purchases with a card. You may also find your credit card issuer offers extended warranty and price protection coverage. If you get a combo of all three protections, it’s even better.

Purchase protection benefits provide protection from loss or damage after you buy the item. Each credit card has its own policy, so you need to carefully read over the terms and limitations before you submit a claim. If you can submit a claim, it’s an extremely beneficial cardholder perk. Not every credit card offers it because it is so valuable. Here are some of the best credit cards for purchase protection.

ABOC Platinum Rewards Mastercard®

Sign up for the ABOC Platinum Rewards Mastercard® and get more than purchase protection. The card also has a 0% APR for 12 months and a $150 statement credit if you make $1,200 in purchases within 90 days of opening an account.

This rewards credit card offers 1 point for every $1 you charge on the card. Purchases that fall in the quarter’s special category (Groceries, Dining/Entertainment, Travel, Automotive, etc.) receive five times the rewards on the first $1,500 in combined purchases during that quarter. You never pay an annual fee with this card.

If you’ve taken precautions to keep your property from loss or damage related to theft, the ABOC Platinum Rewards Mastercard® does have a protection plan in place. The Extended Warranty coverage may also protect you from some situations by extending the manufacturer’s warranty by as much as 12 months. This coverage is only in effect if you purchased the item with the card. Certain items, such as antiques, are excluded and benefits are limited to $10,000. You have 60 days to file your claim.

There’s one other protection available with the ABOC Mastercard. If you purchase an item and the price drops within 60 days of purchase, you can get some money back. File a claim online following these steps.

  1. Provide a copy of the credit card statement showing you used the ABOC Mastercard to purchase the item.
  2. Provide your itemized store receipt.
  3. Provide a copy of an online or printed advertisement showing the item is lower than what you paid.
  4. Verify the price difference is within the 60-day time frame.

If your claim is reviewed and found to be valid, the price difference is refunded on your credit card statement.

American Express Blue Cash Everyday Card

Several American Express cards have some level of purchase protection. With the Blue Cash Everyday Card, you get coverage of up to $1,000 per item and $50,000 per year. If an item is damaged or destroyed in a natural disaster, coverage drops to $500. Blue Cash Everyday Card’s purchase protection covers many items, but there are restrictions. It doesn’t cover items like antiques, art, sports equipment, motorized equipment, pets, medical/dental devices, and others. You’ll find the full list in your plan documents.

Purchase protection is limited to 90 days from the time of purchase. Make sure you submit your claim as quickly as possible. Claims have to be made within 30 days of the loss. Claims are made via toll-free number or online at American Express. You need your credit card statement, itemized receipt, and explanation of what happened. If an item was stolen, a police report is also needed.

Capital One Venture Rewards

Get two miles for every dollar you charge on the Capital One Venture Rewards card. As a new cardholder, you also get 60,000 bonus miles when you spend $3,000 within 90 days of opening your account. There is a $95 annual fee on the card but no foreign transaction fees. The introductory APR is 0% for 12 months.

Capital One helps cardholders protect their purchase through extended warranties. The warranty protection is only available on certain items you purchase with the Venture Rewards card. Medical equipment, boats, and appliances are among them. Cardholders also gain protection on damage to rental cars as long as the car is rented using the credit card. You have 60 days to file a claim and you need your receipt, a copy of the manufacturer’s warranty, and steps you’ve taken for repairs or replacement.

Chase Sapphire Preferred

The Chase Sapphire Preferred card offers both purchase protection and extended warranty protection. If you use the card to buy something new, you receive 120 days of purchase protection from theft or damage. The limits are $500 per claim and $50,000 per account. If your item has a warranty that’s less than three years, Chase Sapphire also adds time to the original warranty to provide additional protection against items that stop working unexpectedly.

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No annual fee; $150 statement credit after spending $1,200 in first 90 days; 0% on Purchases for 12 months

When Would You Use Purchase Protection?

Imagine you’ve bought a microwave oven online. It arrives and the door doesn’t latch correctly. Without a sealed door, the microwave doesn’t work. The company’s limited warranty is in place, but it doesn’t cover the issue. They want you to pay to have the item shipped back to their warehouse using an expedited service. The cost of that is almost as much as what the item cost you. Check with your credit card company to see if purchase protection covers you.

After spending hundreds on a new armchair, one of the legs snaps off when you sit down. The 30-day warranty ended yesterday. With purchase protection, your credit card company may be able to help you get your money back.

Are there situations where the purchase protection won’t help you? Different credit card companies have rules regarding claims. Collectibles like art, furs, coins, and antiques are not covered by purchase protection plans.

Items that are not used as intended or that are handled carelessly are not covered. If you purchase a microwave and use it to microwave items like metal trays for entertainment, it’s not covered. Items that you lose or misplace are not covered.

How Do You Use Purchase Protection?

Make sure you’re covered. Read over your credit card’s benefit statement to learn more about eligibility. You usually have to go through your insurance company first. You’ll find your terms online when you log into your account. You will likely need to apply for coverage through your insurance company first and the credit card second. For example, if a computer is damaged during a home fire, you may need to apply for coverage through your insurance first. It’s important to see if that’s the case or if you can file with your credit card company and bypass the insurance company.

Make sure you paid for the item using that credit card. If you made a partial payment with cash and the balance on that credit card, you will likely not be covered. You’ll need a receipt to prove it. You’re also going to need your credit card statement that shows the purchase, a copy of the claim with your primary insurance company if it was needed, a copy of your insurance policy, and any repair bills/statements. If the item was damaged or lost during a theft, a copy of the police report is also needed.

To file a claim, you often have to call a specific toll-free number. You may be able to file the claim through a website. Log in and see what it says in your online account. If you have to contact customer support, it’s easy to do from online banking apps or sites.

The best credit cards with purchase protection help you avoid costly repair or replacement bills. Research credit card benefits before you apply. Use pre-qualification to help narrow your choices and apply for the credit card that best meets your preferences.

Featured Low Interest Card

Top Features:

No annual fee; $150 statement credit after spending $1,200 in first 90 days; 0% on Purchases for 12 months

The information contained within this article was accurate as of December 30, 2020. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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tracy

About Tracy Farnsworth

Tracy Farnsworth went straight from a business track in high school to a full-time job in mortgage banking in Burlington, Vermont. After having children, she built a freelance career in content writing and took online classes as time allowed. She completed Social Media Marketing and Digital Marketing certificate programs with Ireland's online Shaw Academy and completed several courses in SEO and analytics. In her free time, she's the “mom” to a very clingy rat terrier, and the pair walk at least a mile every day. She's also a novice baker who is trying to master the art of sourdough bread.