Ever had a new phone slip from your hands—or a package stolen from your doorstep? If you paid with the correct credit card, you may not have to bear the loss. That's where credit card purchase protection comes in: it reimburses you if an eligible item is damaged or stolen within a set period after purchase (usually 90 to 180 days).
This underrated benefit can save you hundreds of dollars, but not all cards offer it equally. One of the best in Canada for this type of coverage? The National Bank World Elite Mastercard, which stands out for its strong protection terms and ease of claims.
Here’s how purchase protection works, and which cards offer the best bang for your buck.
Key Takeaways
- Purchase protection reimburses, repairs, or replaces most belongings stolen or damaged within 90–180 days of the original purchase date.
- Purchase protection excludes some items and types of damage, including manufacturer defects, botched repairs, and natural wear and tear.
- The credit card with the best purchase protection insurance in Canada is the National Bank World Elite Mastercard.
- To submit an insurance claim, contact your bank or your bank’s insurance company.
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What is credit card purchase protection?
Purchase protection is a type of credit card insurance that covers eligible items against theft or accidental damage, usually for 90 to 180 days after you buy them with your card. If something you bought is stolen or damaged within that window, your credit card’s insurance can reimburse you, replace the item, or cover the cost of repairs, depending on the policy.
Say you buy a new laptop with your credit card, and it gets stolen from your car a week later. If your card offers purchase protection, you can file a claim by submitting your receipt, credit card statement, and, if applicable, a police report. If your claim is approved, you’ll receive reimbursement for the cost of the laptop, up to the coverage limits of your card.
Purchase protection vs. extended warranty
Purchase protection provides insurance coverage for new items in near-perfect condition. It applies to losses that aren’t the credit cardholder's or manufacturer’s fault, such as accidental falls, house fires, or thefts. The credit card company sets the terms and conditions, as well as the exclusions.
Extended warranty coverage extends an item’s original manufacturer’s warranty by one to two years. Manufacturer warranties usually apply to malfunctions, manufacturing defects, shoddy workmanship, and any losses that are the responsibility of the item’s creator(s). If your claim is approved, the credit card company will honour the original manufacturer’s warranty on your behalf and follow the terms and exclusions as written.
If your new purchase worked perfectly fine up until it was stolen or damaged, it may be covered by purchase protection. If your belongings are defective or have prematurely worn out and the original manufacturer’s warranty has expired, they may be covered by an extended warranty.
How to submit a purchase protection claim
The process of filing a purchase protection claim is the same for most credit cards. First, find your card’s certificate of insurance in the welcome package you received with your first card or look it up online.
You’ll typically follow these steps:
- Contact the insurer within 48 hours to report the loss
- File a purchase protection claim within 30 days using the insurer’s form
- Submit supporting documents (like receipts, police reports, or your credit card statement) to the insurer within 90 days by email, fax, or mail
If your claim is approved, the RBC Avion Visa Infinite guarantees payment within 60 days of receiving supporting documentation. That said, most credit cards don’t offer a firm timeline. It could take anywhere from 90 days to 6 months for your bank to apply a refund or reimbursement to your credit card.
What credit card purchase protection covers (and what it doesn’t)
Although the details for credit card purchase protection vary by card issuer, we looked at insurance offered through American Express, Mastercard, and Visa credit cards to find what purchase protection policies most commonly cover.
Specifically, 2 types of loss are covered:
- Physical damage such as an accidental animal encounter, burn, crush, freeze, fall, impact, submersion in water, or exposure to the outdoors
- Theft such as bag snatching, home robbery, mugging, or pickpocketing
If your item qualifies and you bought it with a credit card that has purchase protection, you can file a claim with the insurer. Usually, you have to do this within 90-180 days of the original purchase date. If your claim is accepted, the insurer decides how to resolve it. For instance, you might get a refund, replacement, or reimbursement of repair costs.
Be aware that damaged or stolen smartphones might not be covered under purchase insurance. Instead, the insurer might offer coverage through mobile device insurance.
What purchase protection doesn’t cover
First off, your credit card account must be in good standing. You can’t file a claim and get a payout if you have late payments or you cancelled your card.
You also won’t get more money than your policy’s coverage limit or the amount you paid by credit card, whichever is smaller. For example, if you bought something on sale, you won’t be reimbursed the full price.
While policies vary, most insurance certificates exclude the following:
- Animals, banknotes, cash, cheques, documents, perishable food, jewellery, live plants, tickets, and watches
- Items confiscated by the government
- Items covered by other insurance policies, such as homeowners' or renters' insurance
- Items used for business or commercial purposes
- Motor vehicles of any kind, including boats, cars, golf carts, motorcycles, and scooters
- Damage caused by criminal acts, rebellion, or war
- Deliberate damage or damage resulting from attempted modifications or repairs
- Earthquakes, floods, and other natural disasters
- Manufacturer defects, undelivered items, or damages sustained during delivery
- Radioactive contamination
- Wear and tear
Lastly, purchase protection doesn’t apply to mysterious disappearances (i.e., unexplained losses). You have to be able to explain what happened to your property in order for the insurer to accept the claim.
Best credit cards for purchase protection in Canada
Amex purchase protection extends up to 120 days, while Visa and Mastercard’s best purchase protection policies extend up to 180 days.
It’s your credit card issuer that decides most of your insurance terms, not your payment network. In other words, your hunt for the best purchase insurance should start with major banks like BMO, CIBC, RBC, Scotiabank, and TD.
According to our research, the 4 best credit cards for purchase protection insurance are:
| Credit card | Purchase protection | Coverage limits | Extended warranty | Annual fee |
|---|---|---|---|---|
| National Bank World Elite Mastercard | 180 days | * The amount of the item’s purchase price charged to the card * $60,000 (lifetime) | 2 years | $150 |
| Desjardins Odyssey Visa Infinite Privilege | 180 days | * The amount of the item’s purchase price charged to the card in dollars or BONUSDOLLARS * $50,000 per account per year * $10,000 (furs, fur-trimmed clothes, gems, jewellery, and watches) | 2 years | $395 |
| CIBC Aeroplan Visa Infinite Privilege Card | 180 days | * The lesser of a) the amount of the item’s purchase price charged to the card OR b) the cost of repairs OR c) the item’s cash value at the time of loss * $60,000 (lifetime) | 2 years | $599 |
| BMO CashBack World Elite Mastercard | 90 days | * Item purchase price or the cost of repairs or a replacement * $60,000 (lifetime) | 1 year | $120 |
1. National Bank World Elite Mastercard
The National Bank World Elite Mastercard takes the top spot because it provides the longest period of purchase insurance with the fewest exclusions. Like most of the cards on this list, it’s a premium credit card, which means it carries a high annual fee and income requirements.
We’d say it’s worth it just to experience the fabulous World Elite Mastercard program, which includes 24/7 concierge services, exclusive event tickets, and airport lounge access via the Mastercard Travel Pass. Additionally, cardholders can earn up to 5 National Bank Rewards points per $1 spent, redeemable for gift cards, investment accounts, merchandise, or travel.
Pros:
- 180-day purchase protection
- 2-year maximum extended warranty
- 10 types of included insurance coverage
Additional purchase protection exclusions:
- Computers, mobile devices, tablets, and software
- Drones and remote-controlled aerial devices
- Heating and cooling appliances
- Items damaged by animals, insects, or mould
- Jewellery not carried in a bag by hand or worn on the person
For fewer fees and benefits (but the same amount of purchase insurance), check out the National Bank World Mastercard and National Bank Platinum Mastercard.
2. Desjardins Odyssey Visa Infinite Privilege
Its long list of exclusions may have earned the Desjardins Odyssey Visa Infinite Privilege the second place on our list, but don’t skip it. The Odyssey’s purchase protection policy doesn’t have a lifetime dollar limit, making it a must-have for big shoppers, especially ones who like to travel overseas.
As a Visa Infinite Privilege credit card holder, you’ll enjoy exclusive culinary, cultural, and sports events access, plus premium travel perks and benefits. You’ll also earn a minimum of 1.75% cash back on every purchase, up to a maximum of 4% – we just wish the annual fee and income requirements weren’t so high.
Pros:
- 180-day purchase protection
- 2-year maximum extended warranty
- 9 types of included insurance coverage
Additional purchase protection exclusions:
- Antiques
- Fine art
- Furs, fur-trimmed clothes, gems, jewellery, and watches not carried in a bag by hand or worn on the person
- Collectible coins and stamps
- Golf balls
- Motor vehicle parts and accessories
- Used and refurbished items
3. CIBC Aeroplan Visa Infinite Privilege Card
The CIBC Aeroplan Visa Infinite Privilege Card’s stingy coverage limits sunk it to 3rd place, which is a shame considering it has the 2nd-highest Genius Rating on this list. Its extensive travel insurance, flight perks, and coverage for purchases at home and abroad make it a formidable Aeroplan, travel, and travel insurance credit card all-in-one.
Cardholders enjoy free checked bags on Air Canada flights, unlimited access to Maple Leaf Lounges, and up to 2 Aeroplan Points per $1 spent at Air Canada. The only downsides are its extremely high income requirements and annual fee.
Pros:
- 180-day purchase protection coverage
- 2-year maximum extended warranty
- 12 types of included insurance coverage
Additional purchase protection exclusions:
- Antiques
- Art objects
- Jewellery not carried in a bag by hand or worn on the person
- Used and refurbished items
4. BMO CashBack World Elite Mastercard
$150 GeniusCash + Exclusive: Up to $480 bonus cash back + First year fee waived.*
GC: $150
The BMO CashBack World Elite Mastercard may offer less purchase protection and extended warranty coverage, but it redeems itself with a generous insurance package and a low annual fee. Cardholders earn up to 5% cash back per $1 spent on groceries and save up to 7 cents per litre at Shell.
Pros:
- 90-day purchase protection coverage
- 1-year maximum extended warranty
- 13 types of included insurance coverage
Additional purchase protection exclusions:
- Furs
- Jewellery
- Sports equipment
- Theft without signs of forced entry
- Used and refurbished items
If you’d rather keep the purchase insurance and ditch the annual fee and income requirements, check out the no fee BMO CashBack Mastercard and BMO CashBack Mastercard for students.
FAQ
Are purchases on a credit card protected?
Credit card purchases are automatically insured against physical damage and theft as long as you have a card with purchase protection and meet the eligibility requirements.
When can you use credit card purchase protection?
You could be eligible for purchase protection if the item you bought with your credit card was damaged or stolen within 90–180 days of the original purchase date.
Does every credit card have purchase protection?
Not every credit card has purchase protection – it’s typically reserved for premium credit cards.
Does purchase protection cover a dropped phone?
Most purchase protection plans exclude items damaged by misuse, but you won’t lose anything by filing a free claim.
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