You recently bought the latest gaming system, but your apartment was burglarized, and your insurance may not cover it.
Fortunately, you made the purchase with a credit card that offers purchase protection. Keep reading to learn how purchase protection works — including how to file a claim — so you can take full advantage of this cardholder benefit.
[Read: Best Credit Cards]
What Is Purchase Protection?
Purchase protection, also known as purchase security, is short-term coverage for items you buy with your credit card. If an item is stolen or damaged within the protected period — typically 90 days from the date of purchase — you can file a claim with your credit card company to get reimbursed up to the item’s value.
“When my son was little, he had an iPad that was taken and unable to be recovered,” says Lawrence Sprung, certified financial planner and founder of Mitlin Financial. “We filed a police report and then filed a claim with the credit card company. Shortly after, the cost of the iPad (which had been recently purchased) was refunded to our credit card, and we were able to buy a new one.”
Purchase Protection Limits
Credit card purchase protection caps how much you can receive per claim, regardless of how much you paid for the item. There may also be a limit on how much you can receive each year or in total as a cardholder.
Not all credit cards come with this perk. For instance, Discover doesn’t offer purchase protection on any card.
Also, “Don’t assume all items you buy will be covered,” says Bobbi Rebell, certified financial planner and founder of Financial Wellness Strategies, which provides workplace financial advice. “Most cards won’t replace items you simply lost or forgot.”
Items that malfunction due to normal wear and tear, manufacturer defects, or flooding generally aren’t protected. Your coverage amount may be lower on items damaged due to a natural disaster. Other common exclusions include:
— Consumable goods
— Live plants or animals
— Antiques
— One-of-a-kind items
— Medical equipment
— Motorized vehicles, such as cars or boats
— Sports equipment
— Used items
— Custom items
— Event tickets or gift cards
Credit card purchase protection is often secondary coverage. If you have other insurance that will cover a stolen or damaged item, such as a homeowners or renters policy, you might need to file a claim with that insurer first. However, purchase protection may cover the deductible of that policy, if applicable.
[Read: Cash Back Credit Cards]
How to File a Claim
Eligible items are automatically covered, so there’s no need to register your purchases before submitting a claim. Follow these steps to use your card’s purchase protection benefit:
1. Do your research. Review your account’s benefits guide to learn if your item may be covered and the maximum coverage amount.
2. Gather the necessary information. “You should make sure you have the receipt from the purchase, and if it was stolen, you might need a police report,” says Rebell. “If it is damaged, a photo showing evidence of the damage, as well as an estimate of the cost of repair, is also likely to be required.”
3. Contact your credit card issuer quickly. Be prepared to submit the supporting documentation when you file the claim within the stipulated time frame. For instance, you might only have 60 or 90 days from the time of the theft or damage to file.
While most major card networks offer the same coverage period, coverage amounts can vary from card to card. Please consult your account benefits guide for specific coverage details.
5 Best Credit Cards for Purchase Protection
Chase Freedom Unlimited®
The Chase Freedom Unlimited® is a solid no-annual-fee credit card. The card’s purchase protection covers eligible purchases for up to 120 days and up to $500. However, protection only lasts for 90 days for New York residents.
Additional perks include:
— A $200 welcome bonus if you spend $500 within three months from account opening
— A 0% annual percentage rate for the first 15 months on purchases and balance transfers; a 18.24% to 27.74% variable APR applies after the introductory period.
— 5% cash back on travel booked through Chase Travel?, 3% cash back on dining and drugstore purchases, and 1.5% cash back on all other purchases
Chase Sapphire Reserve®
The Chase Sapphire Reserve® is a popular travel credit card with a $795 annual fee. The card’s purchase protection covers eligible purchases for up to 120 days and up to $10,000. However, protection only lasts for 90 days for New York residents.
Other features include:
— 150,000-point sign-up bonus which you’ll receive after you spend $6,000 on purchases in the first 3 months from account opening
— Eight points per dollar on all travel booked via Chase Travel, four points on flight and hotels booked directly
— Three points per dollar on dining
Capital One Venture X Rewards Credit Card
The Capital One Venture X Rewards Credit Card is another well-liked travel rewards card with a $395 annual fee. The card’s purchase protection covers eligible purchases for up to 90 days, with a maximum benefit of $10,000 per claim and $50,000 per cardholder.
Highlights include:
— 75,000 bonus miles if you spend $4,000 within three months from account opening
— 10 miles per dollar on hotels and rental cars booked through Capital One, and 5 miles per dollar on flights and vacation rentals booked via Capital One
— Valuable statement credits for travel booked through Capital One and Global Entry or TSA PreCheck® fees
American Express Platinum Card®
The American Express Platinum Card® comes with many travel-related perks and a $895 annual fee. The card’s purchase protection covers eligible items for up to 90 days, with a maximum benefit of $10,000 per covered purchase and $50,000 per calendar year.
Other select benefits include:
— You may be eligible for as high as 175,000 Membership Rewards® Points after spending $12,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.
— Five points per dollar on flights booked directly with airlines or with American Express Travel® on up to $500,000 on these purchases per calendar year, five points per dollar on flights and prepaid hotels booked through American Express Travel® and one point per dollar on all other eligible purchases
— Many valuable statement credits for hotel stays, airline fees and digital entertainment, enrollment required
American Express® Gold Card
The American Express® Gold Card is a noteworthy rewards credit card with a $325 annual fee. The card’s purchase protection covers eligible items for up to 90 days, with a maximum benefit of $10,000 per covered purchase and $50,000 per calendar year.
Other highlights include:
— You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer.
— Five points per dollar on prepaid hotels booked through American Express Travel, four points per dollar on restaurants on up to $50,000 per calendar year (then one point), four points on U.S. supermarket purchases on up to $25,000 per calendar year (then one point), three points on flights and one point on all other eligible purchases
— Several valuable statement credits for dining, hotel and Uber purchases
[Read: Travel Credit Cards]
The Bottom Line
“Anytime you are shopping for a card, make sure you fully understand the parameters of the protections being offered,” Rebell says. “If your priority is purchase protection, make sure, for example, that you know the per-claim and per-year limitations of that protection, including if there are deductibles.”
It’s also important to consider the card’s other features to ensure they align with your spending patterns, lifestyle and financial goals. For instance, if you plan to use your card primarily to pay for groceries, travel-related rewards may not interest you.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
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What Is Credit Card Purchase Protection? originally appeared on usnews.com
Update 05/13/26: This story was previously published at an earlier date and has been updated with new information.
