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. 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. 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.
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. 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. Obviously, you can’t make a claim if there is an exclusion in the manufacturer’s warranty. You also 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 an 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 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 not being inherently defective.
- The item not being subject to a product recall.
- The 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.
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. Up to $50,000 is covered under the RBC Cash Back Preferred World Elite Mastercard.
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.
Purchase rate: 20.99%
Cash advance rate: 22.99% (21.99% in Quebec)
Earn rate: Earn up to 1.5% cash back on most purchases.
Welcome Offer: None
Extra perks:
- Unlimited cash back.
- 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’s World Elite Mastercard®
National Bank’s 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. Unlike most credit cards that offer extended warranties. The item in question does not have to pay for in full with the credit card. Conditions apply to this feature.
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.
Purchase rate: 20.99%
Cash advance rate: 22.49%
Earn rate:
- Earn up to 5 points per $1 spent on eligible grocery and restaurant purchases.
- Earn 2 points per $1 spent on eligible gas and electric vehicle charging purchases, recurring bill payments and À la carte travel purchases.
- Earn 1 point per $1spend on other purchases.
Welcome Offer: Up to 40,000 points
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 each year in refund for travel expenses.
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.
Welcome Offer
Earn up to 10% cash back in your first 3 months and the $120 annual fee waived in the first year. Condition apply.
BMO® CashBack® World Elite® Mastercard® Main Features
Annual fee: $120 (first year waived)
Extended warranty: 2 years and up to $60,000 covered for the life of the account.
Purchase rate: 20.99%
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)
Welcome Offer: 10% cash back in the first 3 months
Extra perks:
- Complimentary Boingo Wi-Fi account.
- Save up to 25% off vehicle rentals at National Car Rental and Alamo Rent a Car.
- Complimentary membership in Mastercard Travel Pass.
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. 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.
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.
Purchase rate: 20.95%
Cash advance rate: 22.95%
Earn rate: Earn 2% Money-Back Rewards in two categories and 0.50% in Money-Back Rewards for all other purchases.
Welcome Offer: 10% cash back (up to $100 value)
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®
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.
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.
Purchase rate: 19.99% (20.99 % in Quebec)
Cash advance rate: 24.99% (20.99 % in Quebec)
Earn rate:
- 2 points for every $1 spent on eligible purchases in the restaurant, grocery, digital media, membership, and household categories
- 1 point per $1 spent on other eligible purchases.
Welcome Offer: Up to 10,000 in bonus points
Extra perks:
- Mobile Device Insurance (up to $1000 worth of coverage).
- Save at least 10% off base car rental rates at participating AVIS and Budget locations.
- Mastercard® Zero Liability.
- Emergency Services.
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: 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 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: 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.
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 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.
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.
