Credit card purchase protection can be an incredibly valuable type of insurance that covers the cost when items you've bought with your card are stolen or accidentally damaged. With this coverage, you may be reimbursed for the item, as long as it's within a set period after the original purchase.
This underrated benefit can save you hundreds of dollars. Unfortunately, not all cards offer this perk, and the details vary even among those that do.
This article explains how purchase protection works, what's covered and what's not, 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, also called purchase assurance or purchase security, 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 your card's specific coverage limits.
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 1 – 2 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.
What credit card purchase protection covers
Although the details of credit card purchase protection vary by card issuer, we reviewed the insurance offered through American Express, Mastercard, and Visa credit cards to identify which 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 for the full price.
While policies vary, most insurance certificates exclude the following:
- Products that were used, refurbished, rebuilt, or remanufactured when you bought them
- 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, scooters, and drones
- Motorized items like snow blowers, golf carts, lawn tractors, and electric bikes
- 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.
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, you should receive payment within a specified timeframe. For example, 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.
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.
Here are the top credit cards for purchase protection insurance, according to our research:
| Credit card | Purchase protection | Coverage limits | Extended warranty | Annual fee | Learn more |
|---|---|---|---|---|---|
| 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 | Learn more |
| Desjardins Odyssey Visa Infinite Privilege | 180 days | * The item's purchase price charged to the card in dollars or BONUSDOLLARS * $50,000 per account per year | 2 years | $395 | Learn more |
| 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 | Learn more |
| Scotiabank American Express Platinum Card | 120 days | * $60,000 (lifetime) | 2 years | $399 | Learn more |
1. National Bank World Elite Mastercard
×2 Award winner 
Pros:
- 180-day purchase protection
- 2-year maximum extended warranty
- Includes 10 types of insurance coverage
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.
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
- Traveller's cheques, gift cards, currency, tickets, ingots, and title documents
- Animals, living plants, and perishable items
- Automotive vehicles, scooters, lawn mowers, and golf carts
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
Pros:
- 180-day purchase protection
- 2-year maximum extended warranty
- Includes 9 types of insurance coverage
Like our #1 card, the Desjardins Odyssey Visa Infinite Privilege also gives 180 days of purchase protection, but it places a $10,000 limit on each item you claim. That said, the annual limit is $50,000. Remember, our #1 card has a lifetime limit of $60,000.
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.
Additional purchase protection exclusions:
- Mail order items not delivered or damaged upon delivery
- Perishables
- Motorized vehicles and parts
- Loss due to mysterious disappearance
- Damage related to normal wear and tear
3. CIBC Aeroplan Visa Infinite Privilege Card
Pros:
- 180-day purchase protection coverage
- 2-year maximum extended warranty
- Includes 12 types of insurance coverage
The CIBC Aeroplan Visa Infinite Privilege Card's lesser coverage limits sunk it to 3rd place, which is a shame considering it has the second-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.
Additional purchase protection exclusions:
- Antiques
- Art objects
- Jewellery not carried in a bag by hand or worn on the person
- Used and refurbished items
- Items purchased for business or commercial purposes
- Animals, living plants, perishables, and consumables
- Traveller's cheques, tickets, currency, and collectible coins
- Motorized vehicles and airplanes
4. Scotiabank American Express Platinum Card
Pros:
- Save up to 10 cents per litre on fuel at Shell
- No foreign exchange fees
- 10 airport lounge passes per year
The last card on our list, the Scotiabank American Express Platinum Card, doesn't give 180 days of coverage, but the included 120 are better than the average of 90 days. We also included it because, as a premium American Express card, the benefits are top-notch.
You'll earn a steady 2 points per $1 spent everywhere, and you can redeem them for high-value rewards. Swipe your card at Shell to get a hefty fuel discount, or use your Priority Pass or Plaza Premium lounge memberships to get some much-needed rest between flights. The card's generous insurance package also means you'll want to use it for any type of travel.
Additional purchase protection exclusions:
- Traveller's cheques, cash, tickets, or coins
- Art and antiques
- Items bought used or pre-owned
- Living plants, animals, and perishables
- Motorized craft like cars, boats, and airplanes
- Parts and labour services
- Items purchased for business or commercial use
- Jewellery not carried in a bag by hand or worn on the person
FAQ
Do credit cards have purchase protection?
Many credit cards have purchase protection, but you shouldn't assume that yours does. Some credit cards, such as store-branded or prepaid credit cards, might not include this coverage, so it's important to read your credit card's insurance terms and conditions.
What's the best purchase protection credit card?
The National Bank World Elite Mastercard is the best credit card for purchase protection, offering the longest coverage term available – 180 days – along with $60,000 in coverage. It also offers the usual World Elite Mastercard perks, so it's an excellent card to have in your wallet even if you don't ever need to rely on the purchase protection.
What protection do I have if I pay by credit card?
Although exact coverage varies by credit card, most credit card purchase protection will reimburse, repair, or replace items you purchased with the card within 90 to 180 days of purchase. In some cases, you might have to provide an original receipt with your claim.
Is credit card payment protection worth it?
Since you're not paying extra for purchase protection, it just happens to be a valuable perk of premium credit cards. Credit cards that include purchase protection will often include other types of coverage, such as mobile device or travel insurance.
What is Visa Purchase Protection in Canada?
Visa Purchase Protection describes itself as a multi-layer security program that protects Visa cards and cardholders. It includes zero liability for unauthorized purchases, Visa secure online purchases, fraud monitoring, EMV chip security, and the Visa E-Promise program for settling purchase disputes with merchants.
What is Amex Purchase Protection?
If something you purchase with your Amex card is lost, stolen, or damaged within a specified period, usually 90 days but up to 120, you can file a purchase protection claim. In some cases, you may need to show an original receipt. Amex Purchase Protection will reimburse you for the cost of the item.
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