We’ve all had it happen—a few weeks after the manufacturer’s warranty expires, the item no longer works as it should. How great would it be to have some extra time when the item is covered under warranty? Luckily, there is such an option. Several credit cards offer extended warranties for items purchased with the card. Let’s take a closer look at the options available in Canada.
Key Points
- A credit card with an extended warranty adds extra coverage beyond the manufacturer’s warranty on eligible purchases made with the card.
- Extended warranties on credit cards are typically up to one or two years on top of the original warranty.
- Some of the best credit cards in Canada with extended warranties include the RBC Cash Back Preferred World Elite Mastercard, National Bank’s World Elite Mastercard®, and BMO CashBack® World Elite® Mastercard®.
What Is A Credit Card Extended Warranty?
A credit card extended warranty offers additional coverage beyond the original manufacturer’s warranty. Many credit card companies offer extended warranties with certain credit cards.
It’s important to understand that such extended warranties do not extend any additional coverage you purchased. Instead, they will often do the lesser of extending a warranty by one or two years or double the coverage period of the warranty.
How A Credit Card Extended Warranty Works
Many purchases are automatically covered under an extended warranty if the original manufacturer’s warranty is less than five years. However, some credit card providers make you register your item within one year of making the purchase if the warranty is more than five years. For the most part, you’ll need to register your item within one year of making the purchase.
You also have to submit a claim to your credit card provider to take advantage of the extended warranty. If you make a successful claim, you will receive the lesser of the original purchase price or cost to repair the item you’re making a claim for.
Credit Cards With Extended Warranties
| Annual Fee | Duration Of Extended Warranty | Max Coverage Payout | |
| RBC Cash Back Preferred World Elite Mastercard | $99 | 2 years | $50,000 |
| National Bank’s World Elite Mastercard® | $150 | 2 years | $60,000 |
| BMO CashBack® World Elite® Mastercard® | $120 | 1 year | $60,000 |
| Tangerine Money-Back Credit Card | $0 | 1 year | $60,000 |
| MBNA Rewards Platinum Plus® Mastercard® | $0 | 1 year | $60,000 |
RBC Cash Back Preferred World Elite Mastercard
When you make a purchase using the RBC Cash Back Preferred World Elite Mastercard, it triples the original manufacturer’s warranty up to a maximum of 2 years. To be eligible, you must pay the full price of the item using your credit card. The combined manufacturer’s warranty and extended warranty cannot exceed 5 years.
RBC Cash Back Preferred World Elite Mastercard Main Features
- Annual fee: $99
- Extended warranty: 2 years and up to $50,000 covered for the life of the account.
- Interest rate: Purchase rate: 20.99% (Cash advance rate: 22.99%)
- Earn rate: Earn up to 1.5% cash back on all purchases.
- Extra perks:
- Purchase Protection up to 120 days
- Auto Rental Loss Damage Insurance
- Complimentary Boingo Wi-Fi account
- Link your card and save 3¢/L on fuel at Petro-Canada
- Link your card with your Be Well card and earn more points at Rexall
National Bank World Elite Mastercard®
The National Bank World Elite Mastercard® extended warranty offer triples the manufacturer’s warranty up to an additional 2 years. Users can take advantage of up to $60,000 worth of coverage over the life of their account.
The National Bank’s World Elite Mastercard® also offers mobile device insurance and an extensive selection of insurance. Including medical and travel.
National Bank’s World Elite Mastercard® Main Features
- Annual fee: $150
- Extended warranty: 2 years and up to $60,000 covered for the life of the account
- Interest rate: Purchase rate: 20.99% (Cash advance rate: 22.49%)
- Earn rate:
- Up to 5 points per $1 spent on eligible grocery and restaurant purchases
- 2 points per $1 spent on eligible gas, recurring bill, & À la carte travel purchases
- 1 point per $1 spent on other purchases
- Extra perks:
- Extensive insurance offerings
- Free access to the National Bank Lounge at Montréal-Trudeau airport
- Mobile device insurance against theft or damages for up to 2 years
- Up to $150/year in refund for travel costs
BMO® CashBack® World Elite® Mastercard®
The BMO® CashBack® World Elite® Mastercard® offers extended warranty protection that doubles the manufacturer’s original warranty for up to one additional year on most qualifying purchases. This coverage automatically kicks in when you use the card to make the purchase and register the item if required. There is a lifetime claim maximum of $60,000.
BMO® CashBack® World Elite® Mastercard® Main Features
- Annual fee: $120 (first year waived)
- Extended warranty: Up to 1 year and up to $60,000 covered for the life of the account
- Interest rate: Purchase rate: 21.99% (Cash advance rate: 23.99% (21.99% in Quebec)
- Earn rate:
- 5% on groceries
- 4% on transit
- 3% on gas
- 2% on recurring bills
- 1% on everything else (unlimited)
- Extra perks:
- Travel and medical protection
- Save up to 20% off vehicle rentals at National Car Rental and Alamo
- Save up to 7¢ off/L on Shell fuel
Tangerine Money-Back Credit Card
The Tangerine Money-Back credit card can double a manufacturer’s warranty for up to one year with a lifetime coverage limit of $60,000. That means if your manufacturer offers a six-month warranty, you’ll be covered for 1 year with Tangerine.
This can be applied to any new items you’ve purchased using your Tangerine Money-Back credit card.
Special Offer
If you’re approved, you’ll earn an extra 10% back on up to $1,000 in everyday purchases made within your first 2 months.*
Tangerine Money-Back Credit Card Main Features
- Annual fee: $0
- Extended warranty: 1 year and up to $60,000 covered for the life of the account
- Interest rate: Purchase rate: 20.95% (Cash advance rate: 22.95%)
- Earn rate:
- 2% Money-Back Rewards in two categories
- 0.50% in Money-Back Rewards for all other purchases
- Extra perks:
- Deposit your Money-Back Rewards into a Tangerine Savings Account, and get a 3rd 2% Money-Back category
- Unlimited Money-Back Rewards
- 1.95% on balance transfers for 6 months
MBNA Rewards Platinum Plus® Mastercard®
The MBNA Rewards Platinum Plus Mastercard comes with an extended warranty feature that will double the manufacturer’s warranty for up to one additional year. So, for instance, if your manufacturer offers a 3-month warranty, it will be extended to 6 months with MBNA.
To be eligible for this coverage, you must purchase the item on your credit card. Up to $60,000 may be covered for the life of the credit card account.
MBNA Rewards Platinum Plus® Mastercard® Main Features
- Annual fee: $0
- Extended warranty: 1 year and up to $60,000 covered for the life of the account
- Interest rate: Purchase rate: 19.99% (Cash advance rate: 24.99%)
- Earn rate:
- 4 points/$1 spent on purchases in the restaurant, grocery, digital media, membership, and household categories
- 1 point/$1 spent on other eligible purchases
- Extra perks:
- Mobile Device Insurance (up to $1,000 worth of coverage)
- Save at least 10% off base car rental rates at participating AVIS and Budget locations
- Mastercard® Zero Liability
What’s Covered Under A Credit Card Extended Warranty?
Though there are some exclusions, most purchases are covered provided you purchased them with a credit card that offers an extended warranty. To qualify for an extended warranty, the item must be covered under a manufacturer’s warranty.
Exclusions To Credit Card Extended Warranties
There are some exclusions to credit card extended warranties. You can’t make a claim if there is an exclusion in the manufacturer’s warranty or on an item that already comes with an extended warranty. Most extended warranties are only applicable if the manufacturer’s warranty is a certain length or less.
Items that are not usually covered under an extended warranty include:
- Used items
- Services
- Jewelry
- Consumable and perishable items
- Animals
- Living plants
- Motorized vehicles, such as automobiles, aircraft, boats, and motorcycles, including their accessories and parts.
Conditions For Extended Warranties
There are also certain conditions that you have to meet for your claim to be successfully processed, including the following:
- The item does not require repair due to negligence, abuse, or misuse.
- The item is properly installed and not altered beyond the manufacturer’s specifications.
- The damage must be more than regular wear and tear.
- The product is not being inherently defective.
- The item not being subject to a product recall.
- The item must not be damaged while being installed or repaired.
Types Of Credit Card Extended Warranties
Visa, Mastercard, and American Express all offer credit card extended warranties.
Visa Extended Warranties
A Visa extended warranty covers some items if the original manufacturer’s warranty’s coverage period is three years or less. If it’s less than a year, the warranty’s coverage period is doubled. If it’s between one year and three years, the warranty’s coverage period is extended by one year.
Depending on the card, there are maximum individual and lifetime claim limits.
Mastercard Extended Warranties
A Mastercard extended warranty covers some items on top of the original manufacturer’s warranty’s coverage period. Specifically, it doubles the original warranty to a maximum of one year.
American Express Extended Warranties
American Express offers extended warranty policies under its Buyer’s Assurance® Protection Plan.
Depending on which American Express card you have, the original manufacturer’s warranty can be extended for up to one additional year if the item is fully purchased using an Amex card.
How To Compare Credit Card Extended Warranties
There are several factors that you should compare to make sure you’re getting an extended warranty that works for you:
| Coverage Period | Choose a credit card that offers a coverage period that works for the items that you’ll be purchasing and potentially making claims on. Most credit card extended warranties last between 1 – 2 years. If you’re purchasing more expensive items or items that have a tendency to get damaged easily, try to go for a credit card with a longer coverage period. |
| Coverage Amount | You usually can’t make claims over a certain dollar value. You usually have an annual and lifetime limit on how much you can claim on your card. |
| Deductibles | Most credit card companies make you pay a deductible whenever you make an extended warranty claim. |
| Restrictions | With most credit card companies, you have a limit on how many claims you can make per year and over the lifetime of the credit card. |
| Claim Process | Make sure you understand the claim process, as some are more complex than others. When you’re trying to make a claim on an item, you don’t want to go through a big hassle, especially if you need the item right away. |
How To Make A Claim
Claims processes may differ slightly depending on the card and the extended warranty policy.
- Review The Agreement: Before you make a claim, be sure to read your credit card cardholder’s agreement. Sometimes, credit card companies make you register the item you purchased within the first year you bought it. If you don’t, you might not be able to make a claim.
- Show Proof Of Purchase: To make a claim, you have to prove that you bought the item you’re making a claim on your credit card. You can do this by providing the original receipt you got when you purchased the item.
- Show Proof Of Purchased Warranty: If you bought any other warranty coverage, you will have to provide proof of that and proof of a manufacturer’s warranty if one exists.
- Complete The Claim Form: Next, you will have to fill out a claim form, which will be provided by your credit card company.
Bottom Line
Credit cards that offer extended warranties for products purchased using the card are a great option for most consumers. Particularly those that purchase a lot of expensive or delicate electronics. Keep in mind that you might have to register your purchase with your credit card provider within a certain time after you purchase it, but sometimes your coverage is automatic.
