Best Credit Cards With Extended Warranty 2021

We’ve all had it happen—a few weeks after the manufacturer’s warranty expires, the item no longer works as it should. Wouldn’t it be nice to have some extra time that the item is covered under warranty? Luckily, there is such an option. Some credit cards offer extended warranties for items purchased with the card.

What Is A Credit Card Extended Warranty? 

Many credit card companies offer extended warranties with certain credit cards they offer. What it does is extend the original manufacturer’s warranty. It does not extend any additional coverage you purchased. It will often do the lesser of extending a warranty by one year or double the coverage period of the warranty.

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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, although some credit card providers make you register your item within one year of making the purchase. If the warranty is more than five years, it is almost guaranteed that you will have to register your item within one year of making the purchase.

You 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.

What’s Covered Under A Credit Card Extended Warranty? 

There are some exclusions, of course, but most purchases are covered provided you purchased them with a credit card that offers an extended warranty. Keep in mind that the item has to be covered under a manufacturer’s warranty to qualify for an extended warranty.

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Exclusions To Credit Card Extended Warranties

There are some exclusions to credit card extended warranties. Obviously, you can’t make a claim if there is an exclusion in the manufacturer’s warranty, and you can’t make a claim 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 extended warranty include:

• Used items
• Services
• Jewelry
• Consumable and perishable items
• Animals
• Living plants
• Automobiles, aircraft, boats, motorcycles, and other motorized vehicles, including their accessories and parts

There are also certain conditions that you have to meet for your claim to be successfully processed. These conditions include:

• The item not requiring 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 not being inherently defective
• The item not being subject to a product recall
• Them item must not be damaged while it was 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 is less than a year, the warranty’s coverage period is doubled. If it is 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 if the original manufacturer’s warranty’s coverage period is 12 months or less. It doubles the original warranty to a maximum of 24 months.

American Express Extended Warranties

American Express offers two kinds of extended warranty policies: the Purchase Protection® Plan and the Buyer’s Assurance® Protection Plan.

• Purchase Protection® Plan: Depending on your American Express card, eligible retail items are covered for up to 90 or 120 days from the date of purchase against theft or accidental physical damage. American Express will cover up to $1,000 per claim.
• 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 or two additional years. The warranty cannot be more than five years and must be valid in Canada and the United States. American Express will cover up to $10,000 per item and $25,000 per policy year. 

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Credit Cards With Extended Warranties

There are several credit cards that offer extended warranties:

BMO® CashBack® World Elite®* Mastercard®

Under the Purchase Protection Plus plan, you don’t need to register your purchase, but you must purchase the entire item on your credit card. Meaning you can’t split the cost between two credit cards or pay half in cash.  With the Purchase Protection Plus plan, most items are covered against theft or damage for 180 days after you purchase them. There is a lifetime claim maximum of $60,000. 

BMO also has a second extended warranty option called the Extended Warranty Plus plan. Here you must register your item if the manufacturer’s warranty is more than five years. It will extend the manufacturer’s warranty by up to two years. There is a lifetime claim maximum of $60,000.

• Annual Fee: $120
• Cash Back / Rewards:
  • 5% on groceries
  • 4% on transit
  • 3% on gas
  • 2% on recurring bills
  • 1% on everything else

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. Up to $50,000 is covered under the RBC Cash Back Preferred World Elite Mastercard.

• Annual Fee: $99
• Cash Back / Rewards: up to 1.5% cash back

Tangerine Money-Back Credit Card

The Tangerine Money-Back credit card can double a manufacturer’s warranty up to one year with a lifetime coverage limit of $60,000. Meaning if your manufacturer offers a six-month warranty, you’ll be covered for 1 year with Tangerine. Similarly, if your manufacturer offers a 1-year warranty or a 2-year warranty, you’ll be covered for 2 and 3 years respectively. This can be applied to any new items you’ve purchased using your Tangerine Money-Back credit card. 

• Annual Fee: $0
• Cash Back / Rewards:
  • 2% cash back in two categories of the cardholder’s choosing
    • Grocery
    • Furniture
    • Restaurants
    • Hotel/motel
    • Gas
    • Recurring bill payments
    • Srug store
    • Home improvement
    • Entertainment
    • Public transportation and parking),
  • 0.5% cash back in all other categories

MBNA Rewards Platinum Plus® Mastercard®

MBNA Rewards Platinum Plus Mastercard will double the manufacturer’s warranty for up to one additional year. Meaning 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.

• Annual Fee: $0
• Cash Back / Rewards:
  • 2 rewards points for every $1 spent on eligible purchases up to a maximum of $10,000
    • Restaurant
    • Grocery
    • Digital media membership
    • Household utility
  • 1 point per $1 spent on eligible purchases after that

CIBC Aeroplan Visa Infinite Privilege Card

With the CIBC Aeroplan Visa Infinite Privilege Card, you’ll have access to their purchase security plan and their extended protection insurance. The plan offers coverage to items you bought using your credit card. If your item is lost, stolen or damaged, you can be reimbursed. Moreover, with their extended warranty, your manufacturer warranty gets tripled, up to a maximum of 2 years. Meaning if you have a 2-year manufacturer warranty, you’d get 4 years’ worth of coverage with CIBC.

• Annual Fee: $599 per year. 
• Cash Back / Rewards:
  • Welcome bonus of 75,000 points
  • Earn 1.5 points per dollar spent on
    • Groceries
    • Dining
    • Travel
    • Gas
  • All other purchases will earn you 1.25 points per dollar spent

How To Compare Credit Card Extended Warranties

There are several factors that you should compare to make sure you’re getting the extended warranty that works for you:

• Coverage Period: Be sure to 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 for between one and three 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 of 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 of how many claims you can make per year and over the lifetime of the credit card.
• Claim Process: Before you get a credit card with an extended warranty policy, make sure you know the inside and outside of the claim process. Some extended warranty claim processes 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.

Additional Reading

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How To Make A Claim

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 with them within the first year you bought it. If you don’t, you might not be able to make a claim.

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. If you bought any other warranty coverage, you will have to provide proof of that as well as proof of a manufacturer’s warranty if one exists. Next, you will have to fill out a claims form, which will be provided by your credit card company.

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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 period of time after you purchase it, but sometimes your coverage is automatic.