7 best credit cards for purchase protection and extended warranty insurance
Updated: May 01, 2024
We conducted an analysis to determine which Canadian credit cards offer the best terms for extended warranty and purchase protection. Our considerations included the length of coverage, scope of coverage, and the ease of getting items covered—and we also tried to provide options to suit a variety of income levels and credit scores.
Best credit cards for purchase protection and extended warranty
| Credit card with purchase protection | Fast facts | Get started |
|---|---|---|
| BMO CashBack® World Elite®* Mastercard®* |
Annual fee: $120
Purchase protection period: 180 days Years added by extended warranty: 2 Max payout: $60K over an account’s lifetime |
Apply now |
| RBC Cash Back Preferred World Elite Mastercard |
Annual fee: $99
Purchase protection period: 120 days Years added by extended warranty: 2 Max payout: $50K annually per card |
Apply now |
| CIBC Aeroplan Visa Infinite Privilege |
Annual fee: $599
Purchase protection period: 180 days Years added by extended warranty: 2 Max payout: $60K annually per card |
Apply now |
| American Express The Platinum |
Annual fee: $799
Purchase protection period: 120 days Years added by extended warranty: 1 Max payout: $25K annually per card |
Apply now |
| Tangerine Money-Back Credit Card |
Annual fee: $0
Purchase protection period: 90 days Years added by extended warranty: 1 Max payout: $60K over an account’s lifetime |
Apply now |
| MBNA Rewards Platinum Plus® Mastercard® |
Annual fee: $120
Purchase protection period: 90 days Years added by extended warranty: 1 Max payout: $60K over an account’s lifetime |
Apply now |
| Home Trust Secured Visa |
Annual fee: $0
Purchase protection period: 90 days Years added by extended warranty: N/A Max payout: $5K per occurrence |
Apply now |
Best credit card for purchase protection
BMO CashBack World Elite Mastercard
5% Groceries: 5% cash back up to $500 spent per month ($25 in cash back)*
4% Transit: 4% cash back up to $300 spent per month ($12 in cash back)*
3% Gas: 3% cash back up to $300 spent per month ($9 in cash back)*
2% Recurring Bills: 2% cash back up to $500 spent per month ($10 in cash back)*
1% Everything Else: 1% cash back, unlimited*
$120 Annual Fee
20.99% Purchase APR
23.99% Cash Advance APR 21.99% for Quebec residents
23.99% Balance Transfer Rate
2.90% Foreign Transaction Fee
Excellent Recommended Credit Score
$80,000 Required Annual Personal Income
$150,000 Required Annual Household Income
Welcome Offer
Get up to 10% cash back in your first 3 months and the $120 annual fee waived in the first year.
Learn morePurchase protection: The BMO CashBack® World Elite®* Mastercard®* will cover repair, replacement, or reimbursement of items purchased by the card that have been either stolen or damaged, up to 180 days after the purchase was made*—that’s double the length of coverage provided by most credit cards’ purchase protection terms.
Extended warranty: The card also extends an item’s original manufacturer’s warranty up to two additional years—again, double the usual warranty extension length. Though extended warranty protection can be applied to items purchased anywhere in the world, the original manufacturer’s warranty must be valid in Canada to apply.
Purchase protection and extended warranty benefits are capped at a lifetime maximum of $60,000 per credit card account.
*Terms and conditions apply
Best RBC credit card for purchase protection
RBC Cash Back Preferred World Elite Mastercard
1.5% Earn up to 1.5% cash back on your spending without limit.
$0.03 Link your card and instantly save 3¢/L on fuel and get 20% more Petro-Points
50 Get 50 Be Well points for every $1 spent on eligible products at Rexall
$99 Annual Fee
20.99% Purchase APR
22.99% Cash Advance APR
22.99% Balance Transfer Rate
Good Recommended Credit Score
$80,000 Required Annual Personal Income
$150,000 Required Annual Household Income
Like the BMO® CashBack® World Elite®* Mastercard®*, the RBC Cash Back Preferred World Elite Mastercard offers up to a two-year extension for a product’s original manufacturer’s warranty, but it offers ‘only’ 120 days of coverage for purchase protection³ (compared to the BMO card’s 180 days).
That said, the RBC Cash Back Preferred World Elite Mastercard does clearly beat out the BMO card in one aspect of its coverage: It offers a max coverage amount of $50K per card per year, which could potentially add up to an enormously high amount of combined coverage over the card’s lifetime.
Click "apply now" to learn more at the RBC Page for up to date offer terms and conditions.
Best Visa credit card with purchase protection
CIBC Aeroplan Visa Infinite Privilege
1.5 points for every $1 you spend on eligible gas, electric vehicle charging, groceries, travel and dining.
2 points for every $1 you spend with Air Canada directly, including through Air Canada Vacations®
1.25 points for every $1 you spend on all other purchases.
2x Earn points twice at over 150 Aeroplan partner brands and over 170 online retailers through the Aeroplan eStore.
$599 Annual Fee $149 each for up to 9 additional cards
20.99% Purchase APR non-Quebec residents†
22.99% Cash Advance APR non-Quebec residents†
Excellent Recommended Credit Score
$150,000 Required Annual Personal Income
$200,000 Required Annual Household Income
Welcome Offer
Get up to 70,000 Aeroplan® points (up to $1,400 in travel value,) free checked bags, complimentary lounge access, and more.
Learn moreFor $599 annual fee, expect great things. The CIBC Aeroplan Visa Infinite Privilege* Purchase Security automatically, without registration, protects most insured items of personal property when at least a portion of the purchase price is charged to the card by insuring the item for 180 days from the date of purchase in the event of loss, theft or physical damage, anywhere in the world.
Manufacturer's extended warranty: Extended protection gives you triple the term of the manufacturer’s warranty up to a maximum of two additional full years commencing immediately following the expiry of the applicable manufacturer’s warranty on most items purchased anywhere in the world when at least a portion of the purchase price is charged to the card and the original manufacturer’s warranty is honoured in Canada or the United States
*conditions apply. Read the CIBC Aeroplan Insurance guide for more here.
Best Amex credit card with purchase protection
Amex Platinum
2x Earn 2 points for every $1 in Card purchases on eligible dining and food delivery in Canada
2x points for every $1 in Card purchases on eligible travel
1x point for every $1 in all other Card purchases
$799 Annual Fee Includes $200 annual travel credit and $200 annual dining credit
20.99% Purchase APR The Preferred rate of 20.99% applies to your Flexible Payment Option balance.
2.50% Foreign Transaction Fee
Excellent Recommended Credit Score
For $799, of course the American Express The Platinum card comes with purchase protection and extended warranty. You get an additional one year on top of the manufacturer's warranty and 120 days of purchase protection.
If you don't want to spend that much, and can forgo 30 days of purchase protection (so you get 90 days instead), go with the best credit card in Canada, the Amex Cobalt for an affordable monthly fee.
With the best Amex cards, they’ll double the manufacturer’s warranty, to a maximum of 2 years in coverage. They don't call it "extended warranty" and opt to call it The “Buyer’s Assurance Protection Plan.”
NOTE: Your coverage only kicks in AFTER the original warranty has expired (or the company went out of business). You can get up to $10,000 per item up to a max payout of $25,000 per year.
Amex calls purchase protection, "Purchase Protection Plan" to make it all the more American Express and you’re coverage amount is $1,000 per occurrence (up to a maximum of $50,000 per year, so be mindful of this when buying a new laptop).
NOTE: Much like the Buyer's Assurance Protection Plan this is only supplemental coverage. So if you have home insurance or tenant's insurance, you'll likely need to use that first and Amex can top you up.
Best no annual fee credit card with purchase protection and extended warranty
Tangerine Money-Back Credit Card
2% Earn 2% cash back on 2 categories of your choice (e.g. groceries, recurring bills, gas, drug stores, etc.)
3 Get a Tangerine Savings account and add a 3rd 2% cash back category.
0.5% Earn 0.50% on all your other everyday purchases.
$0 Annual Fee $0 for additional cardholders
19.95% Purchase APR
19.95% Cash Advance APR $3.50 within Canada, $5.00 outside Canada
1.95% Balance Transfer Rate 1.95% interest for first 6 months, 19.95% after that.
3.00% Balance Transfer Fee 3.00% of the amount transferred, or minimum of $5.00
2.50% Foreign Transaction Fee
Fair Recommended Credit Score
$12,000 Required Annual Personal Income
Though it’s not a guaranteed feature for every credit card, there are nonetheless a number of no annual fee credit cards that offer at least a basic level of extended warranty and purchase protection benefits.
Among the most popular is the Tangerine Money-Back Credit Card, which gives 90 days of purchase assurance for lost, stolen or damaged items, as well as double an item’s manufacturer’s warranty for up to one additional year.
Coverage is limited to a lifetime maximum of $60K.
*Terms and Conditions apply
Best free rewards credit card with extended warranty and purchase protection
MBNA Rewards Platinum Plus Mastercard
10,000 Get up to 10,000 MBNA Rewards points†† as an introductory bonus (see details below)
$0 Annual Fee
19.99% Purchase APR
24.99% Cash Advance APR
22.99% Balance Transfer Rate
Good Recommended Credit Score
Welcome Offer
Earn 4 points per $1 spent on eligible restaurant, grocery, digital media, membership, and household utility purchases until $10,000 is spent annually. You could also receive up to 10,000 bonus points.
Learn moreExtended warranty and purchase protection coverage is more commonly offered by cash back cards rather than rewards cards, but there are exceptions. The MBNA Rewards Platinum Plus® Mastercard® is one of the best rewards cards in Canada and it offers coverage similar to the Tangerine Money-Back Credit Card: Manufacturer’s warranties are doubled for up to one additional year, and purchase assurance is provided for 90 days after an item’s purchase.
Coverage is limited to a lifetime maximum of $60K.
Read more: Best Canadian loyalty rewards programs (including MBNA)
‡, ††, ✪, ***, Terms and Conditions apply
This offer is not available for residents of Quebec. For residents of Quebec, please click here.
Sponsored advertising. MBNA is a division of The Toronto-Dominion Bank (TD) and TD is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this MBNA credit card, please click on the “Apply Now” button.
The Toronto-Dominion Bank is the issuer of this credit card. MBNA is a division of The Toronto-Dominion Bank. ®MBNA and other-trademarks are the property of The Toronto-Dominion Bank.
Best unsecured credit card for purchase protection
Home Trust Secured Visa
$0 Annual Fee Opt for $59 annual fee and pay 14.90% APR interest
19.99% Purchase APR
21.99% Cash Advance APR
Good Recommended Credit Score
$0 Required Annual Personal Income
$0 Required Annual Household Income
$500 Min Security Deposit
Secured credit cards are usually very basic, typically offering few if any special features, and rarely providing purchase protection or extended warranty.
The Home Trust Secured Visa is one of the few secured credit cards that provides 90 days of purchase protection against stolen or damaged items, for up to $5K in coverage per occurrence.
The card unfortunately does not offer extended warranty coverage, but it’s nonetheless a great option for those looking to build their credit score while benefitting from some basic level of insurance for the items they purchase.
What are extended warranty protection and purchase protection?
Credit card extended warranty protection extends the manufacturer’s warranty on an item purchased with your credit card. Most credit cards extend the warranty by the lesser of either one additional year or double the warranty; some credit cards may offer longer warranty extensions than this, others may offer no such extended warranty protection at all. If this kind of coverage is offered by your card it can save you a substantial amount of money that you might otherwise fork over to the likes of Best Buy for an à la carte extended warranty.
Purchase protection covers you in a different way than extended warranty protection, in that rather than extending a manufacturer’s warranty it compensates you for loss, theft, or damage of an item. The insurer will elect to either repair or replace the item, or reimburse you for the item’s purchase price. Purchase protection usually applies only for a limited amount of time after you’ve purchased the item (the ‘coverage period’), typically 90 days.
A credit card’s extended warranty and purchase protection will specify a maximum dollar value of coverage payable, either for an individual item; a year within a credit card account; the ‘lifetime’ of a credit card account; or some combination of the above.
What’s covered by extended warranty and purchase protection?
A product’s warranty will usually cover an item if it is flawed or defected in some way, provided the defect manifests within the warranty’s designated time period, and the defect is not the result of the product’s misuse by its owner. For example, if you buy a new laptop with a 1-year manufacturer’s warranty, and nine months after the purchase the keyboard starts to freeze up, you should be able to invoke the warranty so that the keyboard will be replaced for free—unless of course the manufacturer investigates the issue and traces the busted keyboard to a latte you spilled on it. The same terms and conditions of the original manufacturer’s warranty are typically honored by a credit card’s extended warranty protection, except perhaps in the event that the manufacturer has gone out of business.
Purchase protection covers items that have been stolen or significantly damaged. Some policies may also cover the accidental loss of an item in which you are at fault.
What’s not covered by extended warranty and purchase protection?
Each insurance policy lists a variety of item categories that are excluded from coverage. The excluded categories vary from one card to the next, but they generally include:
- Hard currency; traveler’s cheques; event tickets; gift cards/certificates
- Animals and living plants
- Consumable or perishable goods
- Used/secondhand items and refurbished items
- Motorized vehicles
- Jewelry, gemstones, and precious metals
- Items used commercially (e.g. office equipment)
- Unique or irreplaceable items
Not all extended warranty and purchase protection policies will cover items purchased outside Canada; or if the item was purchased outside Canada, the manufacturer’s warranty must at least be valid within Canada for the extended warranty to apply.
As with most forms of credit card insurance, you’ll typically need to have paid for the item entirely with your credit card in order for the extended warranty or purchase protection to be valid. So if you have a credit card with great extended warranty coverage but you bought your defective television with your debit card, you’re probably out of luck.
How do I make an extended warranty or purchase protection claim?
It’s best to file a claim as quickly as possible after you notice the item is missing, damaged, or defected. The claim process may vary slightly from one insurer to the next, but it will likely be similar to the below:
- 1.
Double check to make sure the item in question is still covered according to the terms of the extended warranty or purchase protection. *Note that if your item’s manufacturer’s warranty is for five years or more, many credit card issuers will require that you register the item within the first year of purchase, which in our opinion is a little shady albeit common.
- 2.
Consult with your credit card issuer to obtain the contact information of your card’s insurer. Keep in mind that credit card issuers are not insurance companies, so they aren’t directly responsible for providing your insurance, and your claim will be processed by the insurer itself.
- 3.
Notify your credit card’s insurer of your intent to file a claim, describe the nature of the claim to them, and request the forms you’ll need to fill out.
- 4.
Gather relevant documents that you’ll need for the claim. For example, if your laptop was stolen you should be ready to provide a copy of the police report you filed. No matter what the circumstances are of your claim you’ll always need to provide a copy of the item’s original sales receipt, and most likely the part of your credit card statement that shows you bought the specific item in question with your credit card. If your claim is for an extended warranty you’ll need to provide a copy of the item’s original manufacturer’s warranty.
- 5.
Submit all the required claim forms and supplementary documents to the insurer. Your insurer may also require you to send damaged or defective items to a designated address for assessment.
- 6.
Confirm with your insurer that they have received the documents you sent and that they are evaluating your claim; find out how long the claim review process will take.
Key lessons
Extended warranty and purchase protection are two forms of credit card insurance that can not only save you the bummer of replacing a defected or stolen item, but can also save you a substantial amount of money. There’s tons of value to be gleaned from getting extended warranty and purchase protection through your credit card, considering many retailers charge from 10% to 20% of an item’s purchase price to include extended warranty coverage. Talk about margin! So the next time someone at Best Buy, Staples, The Brick or Leon’s offers you an additional warranty, just remember, if you pay for the entire purchase with the right credit card, you’re likely already covered and can save yourself some loonies.
Though a card’s insurance policies may be a bit nuanced, the main takeaways from this article are fairly simple:
- 1.
Get at least one credit card that provides extended warranty coverage and purchase protection of some kind; it doesn’t have to have an annual fee.
- 2.
When buying a big-ticket item (electronics, appliances, furniture, instruments, and tools), be certain to make the purchase with your credit card that has extended warranty and purchase protection.
- 3.
Never buy extended manufacturer warranties from a retailer unless you’re certain that your credit card doesn’t provide comparable coverage already.
FAQs
BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.
Tyler Wade has worked in personal finance for over 5 years writing for brands like Ratehub, Forbes, KOHO, and now Money.ca.
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