Many of the best American Express credit cards offer Amex purchase protection as part of their insurance packages. This coverage allows cardholders to have damaged or stolen items repaired or replaced.
While this type of purchase insurance has excellent potential to save you money, those who have access to it don't always know how to use it effectively.
Below, we discuss the ins and outs of how Amex purchase protection benefits Canadians.
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What is Amex purchase protection?
Amex purchase protection in Canada is a basic type of insurance coverage that reimburses you if items you bought are damaged or stolen.
Most major credit card issuers offer purchase protection insurance coverage, along with extended warranty coverage, and American Express is no exception. With any Amex card, you’ll get either 90 or 120 days of purchase protection. If you need to file a claim, you can request up to $1,000 per occurrence (for all purchased items combined).
Here's what Amex purchase protection covers
When you purchase something using your American Express card, the item you bought comes with insurance coverage. If the item is damaged or has manufacturing defects, you can file a claim to recover the cost (and repair or replace the item).
Purchase protection also covers items that are stolen or lost. Good news for you if the camera you bought for your vacation gets stolen by light-fingered thieves at the start of your trip.
The main thing to remember is that you must charge the purchase to your qualifying Amex card to have coverage.
For this article, we'll quote the insurance certificate for the best credit card in Canada – the
Purchase protection vs. extended warranty
Most products, including laptops, small kitchen appliances, and even furniture, come with a warranty. The vast majority of them come with a one-year warranty, which means that if something goes wrong with the item, depending on the store, you can return it to receive a new one or a refund.
Alternatively, if it's been a while, you can contact the manufacturer to request a replacement or refund.
However, once your warranty is up, that's it. If it breaks two days after your warranty ends, you won't receive a free replacement.
Many retailers are more than happy to sell you an extended warranty for the products they sell. But of course, they come at a cost – usually, you have to purchase a separate protection plan.
Instead of automatically signing up for a store’s plan, read your credit card’s insurance policy. Amex credit cards include an extended warranty that doubles the manufacturer’s warranty up to a maximum of two years. Some cards even offer up to three years' warranty. Amex refers to this insurance as the "Buyer's Assurance Protection Plan."
Good to know: Extended warranty doesn’t replace the manufacturer's warranty – it's a supplement. The credit card coverage only kicks in once your original warranty has expired or if the manufacturer has gone out of business.
There's also a maximum amount you can claim: $10,000 per item, with a maximum coverage of $25,000 per year for all purchases combined.
| Type of insurance | How it works | Period of coverage | Max amount you can claim | Exclusions |
|---|---|---|---|---|
| Purchase protection | Provides coverage for a new purchase | 90 or 120 days | $1,000 per occurrence (combined items) | Normal wear and tear |
| Extended warranty | Extends the manufacturer’s warranty for a set period of time | Up to 2 years (3 years with some cards) | $10,000 per item (up to $25,000 per year combined) | Theft, accidental damage, cosmetic damage |
To make a purchase protection claim, contact the card’s insurer within 30 days of the loss or damage, provide the documentation, and wait for them to make a decision.
Amex credit cards that include purchase protection
You may be pleasantly surprised to hear that all Amex credit cards include purchase protection coverage.
Here are a few of our favourites (all of which have 1-year extended warranty and at least 90 days of purchase protection):
| Credit Card | Welcome Bonus | Extended Warranty, Purchase Protection Coverage Length | Annual Fee | Apply Now |
|---|---|---|---|---|
| American Express Cobalt Card | Up to 15,000 bonus points (terms) | * 1 year extended warranty * 90 days purchase protection | $155.88 | Apply Now |
| American Express Green Card | 10,000 bonus points (terms) | * 1 year extended warranty * 90 days purchase protection | $0 | Apply Now |
| SimplyCash Preferred Card from American Express | 10% cash back for the first 3 months + $50 (terms) | * 1 year extended warranty * 90 days purchase protection | $119.88 | Apply Now |
| American Express Platinum Card | Up to 100,000 bonus points (terms) | * 1 year extended warranty * 120 days purchase protection | $799 | Apply Now |
1. The best American Express credit card
×8 Award winner Transfer points to Aeroplan and 7 other travel partners with Canada's #1 credit card.*
8x Award winner Transfer points to Aeroplan and 7 other travel partners with Canada's #1 credit card.*
The title of best Amex credit card belongs to the
The card features unbeatable rewards:
- 5 points per $1 spent on eligible groceries and restaurants
- 3 points per $1 spent on eligible streaming services
- 2 points per $1 spent on eligible gas, transit, and ride share purchases
- 1 point per $1 spent on foreign currency purchases
- 1 point per $1 spent on all other purchases
Coupled with the fact that each Membership Rewards point is worth up to 2 cents and you get an overall return of up to 4.5% on your purchases, you can see why this card is held in such high regard.
You receive high rewards to complement your purchase protection.
2. The best no annual fee Amex card
The no fee
But thanks to the rewards, it's one of the best no annual fee credit cards around. You'll earn a basic 1 point per $1 spent on all purchases. That's good for a return of up to 2% on your purchases when you factor in that each point is worth up to 2 cents.
3. The best Amex card for cash back
If you don't feel like calculating point values, going with a cash back option is always a solid choice, especially with the
Here's what you'll earn on your purchases:
- 4% cash back on gas and groceries
- 2% cash back on all other purchases
And on top of purchase protection, it includes a total of 10 types of insurance coverage.
4. The best premium Amex card
With a hefty annual fee of $799, the
In this regard, it offers slightly longer purchase protection coverage of 120 days, compared to the typical 90 days provided by other American Express cards.
But it offers much more than that. First, here are the rewards:
- 2 points per $1 spent on restaurants and travel
- 1 point per $1 spent on all other purchases
You’ll also enjoy perks like:
- $400 annual travel and dining credits
- Automatic Marriott Bonvoy and Hilton Honors Gold status
- Unlimited airport lounge access for the cardholder and a guest
- Access to Fine Hotels and Resorts
FAQ
What is covered by Amex purchase protection?
Your Amex purchase protection covers items purchased with your credit card. You're covered for up to 90 days after purchase, at least. If you notice a defect or the item is stolen, you can file a claim and receive reimbursement.
What is proof of loss for Amex purchase protection?
In this situation, you’ll need to fill out their required form and submit documentation, such as an itemized store receipt, your homeowner/tenant insurance declaration form, and/or a photo or repair estimate for the damaged item.
How long does Amex purchase protection last?
You’ll get 90 or 120 days of purchase protection depending on the card’s terms and conditions. It's important to remember that an extended warranty doesn't replace a manufacturer's warranty, but supplements it, taking effect once the original warranty has expired.
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