Credit Cards That Offer Purchase Protection

Image by GettyImages; Illustration by Bankrate

There are several reasons to use a credit card for a large purchase. For starters, many of the best credit cards let you earn rewards as a percentage of your spending, and most come with zero liability coverage that protects you from fraud.

Some credit cards also come with added protections and benefits that can help you get reimbursed for eligible products if something goes wrong. This includes purchase protection, which is a unique perk offered through credit cards that can help repair or replace items you bought months after a purchase is made.

If you’re planning on spending a lot of money on furniture, electronics or another large purchase, keep reading to learn more about purchase protection, how this coverage can help you save money and which credit cards have it.

Comparing the best credit cards for purchase protection

Top credit cards with purchase protection

There are plenty of rewards credit cards with purchase protection that can help you recoup your losses when damage or theft occurs. Here are some of the best options available today:

How to use purchase protection

Credit cards that offer purchase protection only extend this coverage when you use your credit card to pay for the item you want coverage for. However, you may also be able to use this coverage if you paid for an item with rewards earned with a credit card that offers purchase protection. Here is what Chase says about qualifying for coverage in their fine print:

Purchase protection “protects an item against theft, damage or Involuntary and Accidental Parting when You charge all or a portion of the cost of the eligible item to Your Covered Card and/or use redeemable Rewards.”

Once you pay for an item with your credit card, rewards points or a combination of the two, the item is automatically eligible for coverage, provided it’s not listed as an excluded item in your card’s benefits guide. If your item is damaged or stolen while your purchase protection coverage is still in force, you are typically instructed to file a claim by calling a claims hotline or filling out a claims form online.

Common purchase protection exclusions

If you plan to use your credit card for purchase protection, you should read through the fine print of your coverage to see which items do and do not qualify.

• Used or pre-owned items
• Perishables
• Items left in plain sight before they were stolen
• Antiques and other collectibles
• Computer software
• Items purchased commercially for resale
• Boats and other motorized vehicles

Items confiscated by the government may also be excluded, as well as losses due to acts of war, items with normal wear and tear or items that “mysteriously” disappear.

The bottom line

If you plan on making a large purchase and want some peace of mind in case something goes wrong, signing up for one of the best purchase protection credit cards makes a lot of sense. Not only can you earn rewards for shopping, but you may get reimbursed or see your item replaced if it’s damaged or stolen while your coverage is in force.

But the best part about credit card purchase protection is that it’s offered free as a cardholder perk. Since you can get coverage without paying for it, you might as well take advantage.

Frequently asked questions about credit cards and purchase protection

• Are all credit card purchases protected?
  

  Not all purchases qualify for purchase protection, and exclusions can vary from issuer to issuer.

• What are the steps for filing a purchase protection claim?
  

  To file a purchase protection claim, follow these step-by-step procedures and ensure you have the necessary documentation ready:

  1. Check if your credit card offers purchase protection and understand the specific terms, such as the coverage period and limits.
  2. Gather required documentation, whether it’s a receipt, a card statement or a police report for a stolen item.
  3. Contact your credit card issuer about the claim as soon as possible. This can typically be done via phone or online.
  4. Provide all the required documentation to your credit card issuer and submit your claim. This may include filling out a claim form provided by the issuer.
  5. Keep in touch with your credit card issuer to track the progress of your claim and provide any additional information if requested.

  Once your claim is approved, the issuer will reimburse you according to the terms of your card’s purchase protection policy.

*Information about the Chase Freedom Flex® has been collected independently by Bankrate. Card details have not been reviewed or approved by the issuer.