Credit card extended warranties: How do they work?
Key takeaways
- Credit card extended warranties can provide coverage for purchases with manufacturer’s warranties, potentially saving thousands of dollars on repairs or replacements.
- The terms and coverage of extended warranties vary by credit card, so it is important to read the fine print and understand what is included and excluded.
- Some of the best credit cards for extended warranties include premier travel and cash back cards.
Extended warranties are a valuable but often overlooked credit card perk that can cover repairs or replacements for large purchases like electronics or appliances if something goes wrong after the manufacturer’s warranty ends. While they don’t apply to everyday items, this credit card protection can save you hundreds — or even thousands — on high-ticket purchases. Want to know how it works or which cards offer it? Read on to learn more.
What is a credit card extended warranty?
Credit card extended warranties apply only to purchases that come with a manufacturer’s warranty and are paid for with an eligible card. Coverage terms vary by card but typically extend the original warranty for a limited time and up to a set dollar amount. For example, some cards may only cover items with manufacturer warranties lasting three years or less.
What is and isn’t covered by credit card warranties
What this coverage includes (and excludes) can also vary depending on the credit card you have. Most credit cards’ extended warranties will add at least one year of warranty coverage after the item’s manufacturer’s warranty expires.
Covered events usually match the manufacturer’s warranty terms and conditions, but may include coverage for defects in the material or workmanship of a product. If you purchase a refrigerator and the ice maker or electronic control board stops working, for example, this is typically something that a manufacturer’s warranty would cover while it’s in force.
Instances that exclude your item from coverage under a manufacturer’s warranty vary depending on your card but may include:
- Acts of war
- Normal wear and tear
- Damage caused by modifications to the product
- Other instances
Be sure to review your card’s extended warranty terms to understand what’s included (or not included).
How to file a claim
To use your credit card’s extended warranty coverage, you should start by gathering the following information:
- Your original receipt
- Proof of the current manufacturer’s warranty
- A credit card statement that shows the purchase was made
- A description of damage or malfunction to the product you are hoping to repair or replace
Once you have this information in hand, you’ll want to begin the process of filing a claim.
However, the way you file a claim for extended warranty coverage can vary dramatically by card issuer. With American Express credit cards that offer extended warranty coverage, for example, you can only call Amex’s claims hotline to file an extended warranty claim. With Chase credit cards that offer extended warranty coverage, you can file a claim over the phone or online.
What to look for in an extended warranty
If you’re choosing a credit card based on its extended warranty coverage, there are definitely factors that make some coverage better than others. Here are the main details to be aware of:
- Coverage per claim. Most credit card extended warranties come with a per-claim limit of around $10,000, but some cards offer more or less extended warranty coverage, so make sure to check.
- Limits per eligible card. Some cards also offer coverage with limits for each eligible card, which may be as high as $50,000. These limits are still worth noting if you plan to purchase a lot of expensive equipment with your credit card and want extended warranty benefits to apply.
- Length of coverage. Most extended warranties add another year to the manufacturer’s warranty for your items, but some types of coverage only apply for original warranties of up to three years, while others apply another year after a five-year manufacturer’s warranty period.
- Exclusions. Check your card’s policy for any exclusions that might bar you from using your credit card’s extended warranty coverage. These can vary based on your card issuer.
Best credit cards with extended warranties
Many credit cards offer extended warranty coverage, but some cards offer longer or better coverage than others. Here are three notable rewards credit cards with extended warranty benefits:
The bottom line
Many of the best credit cards come with a whole host of perks that many people don’t know about. This includes extended warranty protection for pricey items that people commonly pay for with credit. Before you sign up for a new card, it always makes sense to check for this type of protection, as well as other benefits like purchase protection and guaranteed returns.
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