If you have a credit card with mobile device insurance and purchase a cell phone with the card, you'll have protection against accidental loss, damage, and theft. Most cards that include this type of insurance provide up to $1,000 in coverage.
In this article, we discuss what mobile device insurance does and doesn't cover, how to make a claim, and more. We also review the top Canadian credit cards that offer this valuable perk.
Key Takeaways
- Mobile device insurance is a type of credit card insurance included with some credit cards, offering coverage for lost, stolen, or damaged cell phones.
- You must charge the full cost of a mobile phone to your qualifying credit card to be eligible for coverage.
- Mobile phone insurance doesn’t cover normal wear and tear.
- With a $1,500 limit, the RBC Avion Visa Infinite offers the most mobile device coverage.
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What is mobile device insurance?
Mobile phone insurance might seem self-explanatory, but credit card insurance usually comes with quite a bit of fine print. Let's look at the key terms and conditions:
Coverage
As you read through the insurance policy's fine print, it's important to know what's covered and what's not, so you don't spend time and energy submitting a claim that won't be approved. More on that in a moment.
Deductible
A deductible is the amount of money that you have to pay before the insurance provider will kick in to cover your claim.
For example, if you paid $800 for your phone before taxes and have a $100 deductible, you'll need to cover $100 before the insurer will step in to cover the remainder of the claim.
Depreciation
Unfortunately, your mobile phone loses value over time – just like a new car when you drive it off the lot. Insurance providers don't want to pay you the equivalent of a new phone for a mobile device that's no longer new.
This is where depreciation comes in. Most insurance providers that work with credit card companies set a phone's depreciation rate – how much your item loses value – at about 2% per year.
To figure out how much you'll get back from your insurance claim, subtract the depreciation from the purchase price. Don't forget to subtract your deductible.
Eligibility
To enjoy the mobile phone insurance that comes with your credit card, you have to use the card to pay for the phone – either outright or with monthly payments.
Activation
Mobile device coverage doesn't start right away. You typically have a waiting period that varies by card. Read the terms and conditions, but be prepared to wait anywhere from 30 – 90 days before the coverage activates.
Exclusions
Most cell phone insurance policies in Canada cover accidental damage, loss, and theft of your phone. These are the things not usually covered:
- Accessories
- Batteries
- Used mobile devices
- Devices purchased for resale
- Modified devices
- Cosmetic damage that doesn't affect functionality
- Normal wear and tear
We should stress that it's always a good idea to read your insurance certificate closely to find out the exact coverage details.
What your mobile phone insurance covers
Once your mobile device is active, it usually covers accidental damage, loss, and theft of your phone. We should stress that it's always a good idea to read your insurance certificate closely to find out the exact coverage details.
Most credit cards that give mobile device insurance have a $1,000 limit – but remember, that's the limit. If you paid less for your phone, you won't receive that hefty an amount. And insurers take depreciation into account, so they'll subtract a percentage of your phone's value to factor in wear and tear.
How to file a claim
The process of making a claim for mobile phone insurance tends to vary between card issuers, so you should take the time to read your card's insurance certificate. It will walk you through the exact process for your mobile device claim.
In general, you'll need to follow a few simple steps:
- Get a quote for the cost to repair the phone
- File a police report for a stolen phone
- Gather documents
- File the claim
Get a quote if your phone can be repaired
If you think your phone can be saved with professional repair, take it to a professional and ask for a quote. Since you'll have to provide documentation to your card issuer's insurer, make sure to get a physical copy of the quote. It's completely fine if the service tech simply writes a description of the work and an estimate of the cost.
You might be eager to pay for repairs, but wait until you get approval from the insurer before you get your phone fixed.
File a police report if your phone was stolen
If you submit a claim and say the phone was stolen, most insurers will require you to file a police report. When you file, the police will provide a report number that you can submit with your claim. Some insurers specify the amount of time you have to file a report. For instance, Amex requires you to file a police report within 7 days of the theft.
Don't forget to cancel any services tied to your mobile device and change any passwords stored on it.
Gather all related documents
To streamline the application process, locate the following:
- The original sales receipt for your device
- The date and time you notified your provider of loss or theft
- A copy of your original manufacturer's warranty
- A copy of the written repair estimate, in case of mechanical failure and/or accidental damage
- An account statement showing the full purchase price of your device
- A police, fire, or insurance claim, or a loss report in the case of theft
File a claim on the phone as soon as possible
Some issuers have a very short window in which you can submit a mobile device claim. For instance, American Express requires you to call no later than 14 days after the date of loss.
You can file a claim over the phone, though some credit card issuers will allow you to do it online. Here's an easy reference to their contact information:
| Issuer | Telephone number |
|---|---|
| American Express | 1-800-243-0198 |
| BMO | 1 833 324-5947 |
| Scotiabank | 1-800-263-0997 |
| RBC | 1-800-533-2778 |
| Tangerine | 1-855-255-6050 |
| National Bank | 1-888-235-2645 |
When you call, a customer service representative will collect your information and explain the next steps. For example, you might have to submit photo documentation. They'll also provide a timeline of when you might expect a claims decision and reimbursement.
Credit cards with the best mobile device insurance
Here's an overview of some of the best Canadian credit cards with mobile device insurance:
| Credit card | Annual fee | Coverage amount | Coverage start date | Depreciation % | Learn more |
|---|---|---|---|---|---|
| American Express Cobalt Card | $191.88 | $1,000 | Upon purchase of the phone, or 91 days from the purchase | 2% | Learn more |
| BMO eclipse Visa Infinite Card | $120 | $1,000 | 91 days from the date of purchase of your mobile device or the date the first monthly bill payment is charged to your account | 2% | Learn more |
| Tangerine Money-Back World Mastercard | $0 | $1,000 | 30 days from the date of purchase of your mobile device or the date the first monthly bill payment is charged to your account | 2% | Learn more |
| Scotia Momentum Visa Infinite+ Card | $120, waived for first year | $1,000 | 30 days from the date of purchase of your mobile device and the date the first monthly bill payment is charged to your account | 2% | Learn more |
| RBC Avion Visa Infinite | $120 | $1,500 | 91 days from the date of purchase of your mobile device and pay the full price of the phone | 2% | Learn more |
| National Bank World Elite Mastercard | $150 | $1,000 | The 60th day following the date of purchase of your mobile device or the date on which the second consecutive monthly payment under your plan is charged to your Mastercard account | 3% | Learn more |
| Scotiabank American Express Card | $0 | $500 | 30 days from the date of purchase of your mobile device or the date the first monthly bill payment is charged to your account | 2% | Learn more |
| BMO eclipse rise Visa Card | $0 | $1,000 | 91 days from the date of purchase of your mobile Device or the date the first monthly bill payment is charged to your account | 2% | Learn more |
American Express Cobalt Card
Certificate of insurance: American Express Cobalt
The best credit card that includes mobile device insurance is the American Express Cobalt Card. Its mobile device insurance includes the standard $1,000 coverage, but it really stands out for its rewards. You'll earn American Express Membership Rewards at these earn rates:
- 5 points per $1 spent on eligible groceries and restaurants (up to $2,500 spent per month)
- 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
And with each point worth up to 2 cents each, you can get a return of up to 10% on your purchases.
BMO eclipse Visa Infinite Card
$150 GeniusCash + Up to $1,150 in first year value + 5x points on gas & groceries.*
GC: $150
Certificate of insurance: BMO eclipse Visa Infinite
The BMO eclipse Visa Infinite Card comes with a standard $1,000 in mobile device coverage.
You'll also enjoy these high earn rates:
- 5 BMO Rewards points for every $1 spent on dining ($6,000 per year), groceries ($6,000 per year), gas, and transit*
- 1 point per $1 spent on all other purchases*
These BMO Rewards points can be used towards any travel booking for a return of up to 3.35% on your purchases. The card offers a $50 lifestyle credit and earns 10% more points when you add an authorized user to the account.
Tangerine Money-Back World Mastercard
Certificate of insurance: Tangerine World Mastercard
Cards that don't charge an annual fee but still offer mobile device insurance are very rare, and one of the best is the Tangerine Money-Back World Mastercard.
Cardholders earn 2% cash back in 3 categories of their choice, and 0.5% cash back on all other purchases. Have a Tangerine Savings Account? If you choose to have your cash back deposited into this savings account, you can choose another cash back category.
Here are the cash back category options available:
Scotia Momentum Visa Infinite+ Card
×2 Award winner GC: $100
2x Award winner Certificate of insurance: Scotia Momentum Visa Infinite
If you're looking for a cash back credit card with mobile device insurance, look no further than the Scotia Momentum Visa Infinite+ Card.
Packed $1,000 in mobile device coverage and 11 types of insurance, the Scotiabank Momentum Visa Infinite also has excellent earn rates:
- 4% cash back on groceries and recurring bill payments
- 2% cash back on gas, transit, rideshares, and food delivery
- 1% cash back on all other purchases
Plus, the $120 annual fee is waived for the first year. These are some of the many reasons it's among the top cash back cards in Canada.
RBC Avion Visa Infinite
×2 Award winner Up to 55,000 70,000 points + Up to 2.33% return on purchases.*
2x Award winner Up to 55,000 70,000 points + Up to 2.33% return on purchases.*
Certificate of insurance: RBC Avion Visa Infinite
It probably doesn't come as a surprise that RBC also offers mobile device insurance through the RBC Avion Visa Infinite. Users have up to $1,500 in coverage, which comes in handy if you opt for the latest (and priciest!) phone model.
With this card, you'll also earn 1 Avion Rewards point for every $1 spent – 25% more on travel purchases.
This credit card has a standard annual fee of $120 and either $60,000 personal or $100,000 household income.
National Bank World Elite Mastercard
Certificate of insurance: National Bank World Elite Mastercard
The National Bank World Elite Mastercard also offers $1,000 in mobile device insurance, plus flexible rewards and premium benefits.
Here's how you earn points:
- 5 points per $1 spent on groceries and restaurants, up to $2,500 in total spend per month (2 points after)
- 2 points per $1 spent on gas, electric vehicle charging, recurring bills, and travel booked through À La Carte Rewards
- 1 point per $1 spent on all other purchases
The À La Carte rewards program has some unique redemption options, including a $150 annual travel credit, National Bank investments, gift cards, merchandise, and cash back.
Scotiabank American Express Card
Certificate of insurance: Scotiabank American Express
For no annual fee with mobile device insurance, you can't do better than the Scotiabank American Express Card.
You'll get $1,000 in coverage and earn Scene+ points at these rates:
- 3 Scene+ points per $1 spent at Sobeys, Safeway, FreshCo and more
- 2 Scene+ points per $1 spent on grocery, dining and entertainment, gas, daily transit, and select streaming services
- 1 Scene+ point per $1 spent on all other purchases
You can use your points towards a multitude of things, including travel, movies, and merchandise.
BMO eclipse rise Visa Card
Certificate of insurance: BMO eclipse Rise Visa
There's one more no fee credit card that offers mobile device coverage: the BMO eclipse rise Visa Card.
It offers $1,000 in coverage and rewards at the following rates:
- 5 BMO Rewards points for every $2 spent on dining, groceries, and reccurring bills
- 1 point per $2 spent on all other purchases
You can use your BMO Rewards points for travel bookings or many other redemption options.
FAQ
What's the best mobile device insurance in Canada?
For the most part, credit cards that include mobile device coverage almost always provide coverage up to $1,000. The only card on our list that offers more is the RBC Avion Visa Infinite, which gives a generous $1,500.
What does mobile device insurance in Canada cost?
Mobile device insurance is a credit card perk that's included with some cards, so you don't pay to add it to your card. However, to use your mobile device coverage and file a claim, you might have to pay a deductible that varies by card issuer.
What are the best credit cards with mobile device insurance in Canada?
The RBC Avion Visa Infinite has the highest mobile device coverage limit, but the American Express Cobalt Card is our overall favourite card. It's been named the best travel card, rewards card, grocery card, and more for good reasons – the mobile device insurance is just one of many excellent features.
Does Amex Cobalt have mobile device insurance?
Yes, like many of the cards on our list, the American Express Cobalt Card gives $1,000 of coverage. This Amex is also one of the best flexible rewards credit cards around, and it offers high earn rates for popular spending categories.
Can I get mobile device insurance from Scotiabank?
Yes, Scotiabank includes mobile device insurance on many of its credit cards, including the Scotiabank American Express Card and Scotia Momentum Visa Infinite+ Card. Both provide $1,000 of mobile phone insurance coverage, and while the Scotiabank American Express Card charges a reasonable $0 annual fee, the Momentum card has no annual fee at all.
Can I get mobile device insurance from Wealthsimple?
Yes, if you have one of the elusive Wealthsimple Visa Infinite+ and Wealthsimple Visa Infinite Privilege credit cards, you'll get up to $1,000 in mobile phone insurance. While still in the beta testing phase, Wealthsimple's new no-fee Visa Infinite card will also offer this type of insurance.
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