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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.
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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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.
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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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:
There are also certain conditions that you have to meet for your claim to be successfully processed. These conditions include:
Visa, Mastercard, and American Express all offer credit card 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.
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 offers two kinds of extended warranty policies: the Purchase Protection® Plan and the Buyer’s Assurance® Protection Plan.
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There are several credit cards that offer extended warranties:
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.
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.
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.
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.
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.
There are several factors that you should compare to make sure you’re getting the extended warranty that works for you:
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.
If you want to earn cash back on some of your purchases, check out our review of Rakuten.
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.
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