Credit card extended warranty benefits can be valuable, but are often overlooked. You can get extended warranty coverage automatically when you pay for your purchase with a card that offers this benefit, which can potentially save you thousands of dollars on the repair or replacement of the item.
Here’s the specifics of credit card extended warranties, how they work and how you can make a claim. Plus, you can check out our recommendations for cards that offer extended warranty coverage and other valuable benefits such as trip cancellation coverage and purchase protection.
[Read: Best Credit Cards.]
What Is a Credit Card Extended Warranty?
A credit card extended warranty is a benefit offered by certain credit cards that extends the original manufacturer’s warranty on eligible purchases. You’ll get a specified period (usually one year) of warranty coverage beyond what’s provided by the manufacturer. That can save you money if the product you purchased with your card has defects or malfunctions that aren’t apparent until the manufacturer’s warranty expires.
Retailers may offer extended warranties at an additional cost, but credit card extended warranties are included as a cardholder benefit. You may pay an annual fee on the credit card that offers an extended warranty, but you don’t otherwise have to pay for this benefit.
Credit card extended warranty coverage is automatic when you make a qualifying purchase, but there are limitations. Certain purchases, such as vehicles, used or refurbished items and consumable items, may not be covered by your credit card’s extended warranty.
The amount you can claim is generally limited. For example, with some cards issued by Chase you can claim up to $10,000 per claim and a maximum of $50,000 per account. Expect time limits, as you may be required to notify the benefits administrator within about 90 days of the product’s failure.
“Some credit cards also offer additional purchase protection benefits worth paying attention to, such as purchase protection that covers damage or theft of new items made within a 90-day period,” says Andrea Woroch, a money-saving expert and former consumer advisor with Kinoli.
[Read: Best Rewards Credit Cards.]
What’s Covered by Credit Card Extended Warranty?
Credit card terms and conditions generally don’t specifically list what’s covered by the extended warranty but do explain what’s not covered. While not exhaustive, here’s a list of what usually is and isn’t covered by credit card extended warranties.
Covered by Credit Card Extended Warranty
— Consumer electronics, including laptops, cameras and mobile devices
— Appliances
— Sporting equipment
— Tools
— Jewelry
— Musical instruments
— Luggage
— Baby gear
Not Covered by Credit Card Extended Warranty
— Vehicles
— Boats
— Items purchased for resale
— Used or pre-owned items
— Computer software
When to Opt for Retailer Coverage vs. Credit Card Extended Warranty
A retailer’s extended warranty coverage might be superior if you’d prefer to quickly repair rather than replace the item. Credit card extended warranties might pay you back for a covered repair, but a retailer may offer a speedier and more direct process. Some retailers offer repairs on-site, which might be more convenient than making a credit card claim.
Getting a retailer’s extended warranty also may be a good choice for used or refurbished items, which are generally not covered by credit card extended warranties.
You should also compare the terms of a retailer’s extended warranty with your credit card’s extended warranty benefit. Consider whether the length, claim limits and other terms are better on one. It also helps to research customer service reviews to find out how easy or burdensome the claims process may be.
Retailer extended warranties and credit card extended warranties aren’t mutually exclusive — it’s possible to have credit card extended warranty coverage even if you’ve purchased an extended warranty or service contract from the retailer or manufacturer. However, your credit card extended warranty benefit will likely be considered secondary coverage, which means you’ll have to make a claim on a service contract or extended warranty you’ve purchased before you make a claim on your card’s coverage.
[Read: Best Travel Rewards Credit Cards.]
How to File a Credit Card Extended Warranty Claim
Each credit card issuer has its own extended warranty claim process, so the way you file a claim may vary between issuers. You can expect an extended warranty claim process to follow steps like this:
1. Review your benefits guide. Before you file a claim, read the card’s terms and conditions. Confirm that the item is covered, whether you’re within the time limit for filing the claim and whether it’s within the allowed claim amount.
2. Gather documentation. When you file an extended warranty claim, make sure you have the purchase receipt, the original manufacturer’s warranty and your credit card statement with the purchase on it.
3. Initiate the claim. You may be able to file a claim through your card’s online account. Otherwise, you can look at your card’s terms and conditions to find details about contacting the benefits administrator.
4. Follow up as requested. The benefits administrator may have additional document requests or questions. Monitor communications and follow up quickly on requests so you can keep your claim moving forward.
5. Track your claim until it’s resolved. Keep an eye on your claim, monitoring for emails, letters or other communication about your claim until you reach a resolution.
“Claims can be denied if the purchase was not made entirely with the credit card that offers the extended warranty benefit. Don’t split the payment,” says Jamie Strayer, creator and executive producer of “Opportunity Knocks” on PBS, a show about personal finance and economic mobility. “Another common reason is losing the receipt or proof of the manufacturer’s warranty. I use my cell phone to take pictures of big-ticket receipts and save them to my files.”
Cards With Great Extended Warranty Benefits
Many credit cards offer extended warranty benefits, but some have better coverage than others. While extended warranty benefits shouldn’t be your sole reason for getting a credit card, you should weigh the card’s annual fee, rewards and other benefits to consider whether it’s a good fit.
Here are some cards that may offer a good value along with extended warranty coverage.
Chase Sapphire Preferred® Card
— Extended Warranty Duration: One-year extension on original eligible warranties of three years or less.
— Coverage Limit: Up to $10,000 per claim, with a maximum of $50,000 per account.
— Other Protections: Purchase protection, trip cancellation and interruption coverage, baggage delay insurance, trip delay reimbursement and an auto rental collision damage waiver.
— Extended Warranty Duration: Up to a one-year extension on an original manufacturer’s warranty of five years or less.
— Coverage Limit: Up to $10,000 per claim, with a maximum of $50,000 per account per calendar year.
— Other Protections: Global Assist Hotline, baggage insurance plan, car rental loss and damage insurance and purchase protection. (See Rates & Fees)
Capital One Venture Rewards Credit Card
— Extended Warranty Duration: Two additional years on original manufacturer’s warranties of two years or less.
— Coverage Limit: Up to $10,000 per claim.
— Other Protections: Travel accident insurance, an auto rental collision damage waiver and 24-hour travel assistance. (See Rates & Fees)
“As someone who sees the debt trap of credit cards, I almost always advise against making big purchases that require carrying a balance
,” says Strayer. “There is one exception. Consumers should absolutely use cards with extended warranties to purchase big-ticket items like electronics and appliances.”
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Your Credit Card’s Extended Warranty Benefit: Here’s What You Should Know originally appeared on usnews.com
