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Cell phones are an integral part of our everyday lives. It’s a multi-functional device that we rely on for more than just communication. It is a tool that we use to make payments, bank, search the web, play games, read, get directions, and much more. Considering the importance of cellphones and how much we rely on it, it makes sense that we protect it in the event of accidental damage. 

What Is Mobile Device Insurance?

As the name suggests, mobile device insurance is insurance for your mobile device in the event you break or damage it. Mobile device insurance is typically available through your mobile device service provider, your cellphone manufacturer, or the retailer you bought your cell phone from. While these options are available, they are very expensive, often costing a few hundred dollars. A better alternative is getting a credit card with mobile device insurance. Not only will your phone be protected, but you can earn points and gain access to a variety of benefits as well.

Check out what is credit card balance protection insurance?

Factors to Consider When Getting Mobile Device Insurance With a Credit Card

When getting mobile device insurance with a credit card, there are a few factors you should consider before choosing. 

  • Purchase Date – Some credit cards don’t cover phones older than 2 or more years. Be sure to check when you bought your phone to see if it’s eligible for mobile insurance. 
  • Depreciation Rate – Most credit card companies won’t cover the original value of your phone but the current value of your phone. Depreciation rates vary on average between 1% and 3% a month. 
  • Deductibles – You should also read the details regarding the deductibles. Depending on the credit card you choose, you may have to cover part of the cost For example, for phones with a purchase price of $600 or more, you’ll have to pay a deductible of $100 before you get any money from your claim. 
  • Coverage Start Date – Some credit card mobile device insurance starts 30 days after you open an account with them while others start 90 days after you open an account. 
  • Number of Claims – Depending on your credit card issuer, you may only be able to make one claim a year. If you break or damage your phone more than once in a year, you’ll be fully responsible for its repairs or replacement. 

Check out what is credit card churning and why it can be dangerous.

What is Commonly Covered and Not Covered Under Mobile Device Insurance?

Mobile device insurance can be very beneficial when your cell phone gets damaged, but it does come with certain conditions. As such, it is important to understand what is and isn’t covered by your mobile device insurance. Here is a list of what is and isn’t commonly covered:

CoveredNot Covered
Damage (Accidental)Used, modified or refurbished cell phones
TheftSuperficial damages 
LossWear and tear
Mechanical failuresPhone accessories
Batteries

Best Credit Cards With Mobile Device Insurance 

Mobile device insurance is fairly new and only a few financial institutions offer it. Here is a list of the best credit cards with mobile device insurance. 

  • BMO eclipse Visa Infinite Privilege* Card
  • BMO eclipse Visa Infinite* Card
  • Scotiabank Momentum Visa Infinite
  • Tangerine World Mastercard
  • CIBC Aventura Visa Infinite

BMO eclipse Visa Infinite Privilege* Card

BMO eclipse Visa Infinite Privilege

The BMO eclipse Visa Infinite Privilege* Card is BMO’s newly released lifestyle rewards card with an annual fee of $499. While hefty, it has an accelerated earn rate and a number of benefits that make up for its costs. With the BMO eclipse Visa Infinite Privilege* Card you can earn 5 BMO Reward points per dollar spent on dining, groceries, gas, travel, and drugstores. All other purchases will earn you 1 point per dollar spent. Moreover, you can take advantage of the 50,000 welcome bonus that they’re currently offering. In addition to that, you’ll also receive an annual $200 credit that you can use however you want. Other benefits include access to airport lounges, exclusive dining and wine events, and mobile device insurance.

Mobile Device Insurance Details

Coverage AmountCoverage StartCoverage Expiry DepreciationDeductible 
Up to $1,000

BMO eclipse Visa Infinite* Card

BMO eclipse Visa Infinite

The BMO eclipse Visa Infinite* Card is BMO’s second newly released lifestyle rewards credit card designed for urban millennials. Rather than accumulating points to use on big rewards, this card allows its users to reward themselves with points on more immediate purchases. Whether you’d like to treat yourself to a coffee or a vacation, you have the choice to use your points how you want and when you want. With the BMO eclipse Visa Infinite* Card you’ll be able to earn 5 BMO Reward points per dollar spent on dining, groceries, gas, travel, and drugstores. All other purchases will earn you 1 point per dollar spent. You can earn an additional 40,000 through its welcome bonus offer. Lastly, you’ll also receive an annual credit of $50 and mobile device insurance. 

Mobile Device Insurance Details

Coverage AmountCoverage StartCoverage Expiry DepreciationDeductible 
Up to $1,000

Scotiabank Momentum Visa Infinite

Scotia momentum

The Scotiabank Momentum Visa Infinite is a cashback credit card with an annual fee of $120. It is currently offering a welcome offer that is valued at $350 dollars. The welcome offer includes an annual fee rebate of $120 and an accelerated earn rate of 10% for your first 3 months, up to $2,000 in purchases. In general, you can earn 4% cash back on groceries and recurring bills, 2% on gas and transit, and 1% on everything else. It also offers a comprehensive travel insurance package and mobile device insurance. 

Mobile Device Insurance Details

Coverage AmountCoverage StartCoverage Expiry DepreciationDeductible
Up to $1,00030 days after the date of purchase of your mobile device.2 years from the date of purchase of your mobile device.2%Varies by phone purchase price

Find out how credit cards can affect your credit score.

Tangerine World Mastercard

Tangerine mastercard

The Tangerine World Mastercard is a subtle card with no over-the-top offers or bonuses. Instead, it provides a well-balanced credit card that offers its customers a good earn rate and access to a number of benefits for free. With the Tangerine World Mastercard, you can earn 2% cash back on any two major shopping categories of your choice and 0.5% on all other purchases. You’ll also have access to a variety of benefits and perks including Boingo Wi-fi when travelling, rental car insurance, LoungeKey, and of course mobile device insurance. 

Mobile Device Insurance Details

Coverage AmountCoverage StartCoverage Expiry DepreciationDeductible
Up to $1,00030 days after the date of purchase of your mobile device.2 years from the date of purchase of your mobile device.2%Varies by phone purchase price
Special Offer

Apply for a Tangerine World Mastercard® by April 30, 2024. 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.*

CIBC Aventura Visa Infinite

CIBC Aventura

The CIBC Aventura Visa Infinite has an annual fee of $120. Currently, it’s offering a welcome bonus of 20,000 Aventura points and an annual fee rebate for your first year. With this card, you can earn 2 Aventura points per dollar spent on travel and 1.5 Aventura points on gas, grocery and drug stores. All other purchases will earn you 1 Aventura point per dollar spent. The CIBC Aventura Visa Infinite also provides a variety of perks including access to 1,300+ airport lounges. You’ll also have access to travel insurance, rental car insurance, and mobile device insurance. 

Mobile Device Insurance Details
Coverage AmountCoverage StartCoverage Expiry DepreciationDeductible
Up to $1,00091 days after the date of purchase of your mobile device.2 years from the date of purchase of your mobile device.2%10%

Do you travel often? Then check out these Aeroplan credit cards.

Best Credit Cards with Mobile Device Insurance Overview

Annual FeesAPRCash AdvanceCoverage AmountWelcome Bonus
BMO eclipse Visa Infinite Privilege* Card$49920.99%23.99%Up to $1,00050,000 BMO Reward points
BMO eclipse Visa Infinite* Card$12020.99%23.99%Up to $1,00040,000 BMO Rewards points
Scotiabank Momentum Visa Infinite$12020.99%22.99%Up to $1,00010% cash-back
Tangerine World Mastercard$019.95%19.95%Up to $1,000
CIBC Aventura Visa Infinite$12019.99%22.99%Up to $1,50020,000 Aventura Points

Making a Claim

In order to make a claim, you’ll need to provide certain documents including your phone’s original purchase receipt, a copy of your manufacturer’s warranty, proof of theft or loss (ex: police report), or a copy of your repair costs if your phone was damaged. 

Note: be sure to file a report with the police and cancel your phone services within 48 hours if your phone is stolen. Most mobile device insurance will require you to do so in order to be eligible to make a claim. 

Check out what credit score you need to get a credit card.

Bottom Line

If you’re clumsy or simply want the peace of mind of knowing you’re protected, getting a credit card with mobile device insurance is well worth it. Not only do you save money from potential phone damages, theft or loss, but you’ll also be able to take advantage of the credit card reward points and other benefits that come along with it. 

* BMO, Scotiabank, CIBC, and Tangerine are not responsible for the accuracy of this information or for maintaining the content on this page. Please visit the website of the credit card provider for the most up-to-date information.

Priyanka Correia, BComm avatar on Loans Canada
Priyanka Correia, BComm

Priyanka Correia is a Marketing Coordinator and personal finance expert at Loans Canada. Priyanka completed her Bachelor's degree in Marketing at Concordia University and has published work that has been mentioned in various news media. She is passionate about money management and educating Canadian consumers about how to take control of their financial lives.

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