Credit cards with purchase protection

Credit card purchase protection is a complimentary insurance policy attached to a credit card, providing a period of cover against loss, theft or accidental damage for most new items purchased using the credit card. Although it may sound like the same thing, purchase protection not the same as price protection.

There is no cost for credit card purchase protection. It is a complimentary insurance policy attached to some credit cards.

No. Most (but not all) personal (i.e. non-business) gold, platinum or black cards will have purchase protection included. Some lower-level cards also have this type of complimentary policy.

In most cases cover is extended for a period of 90 days from the purchase date, but a very small number of premium cards offer 120 days of cover.

Typically, the item must be new, and intended for personal use (which means that purchases for business purposes are not covered). Some types of items are usually excluded. The exclusion list may include animals and plants, cash, traveller’s cheques, tickets, perishable items, motor vehicles, antiques, computer software and services.

The amount you can claim for a single item is limited to the actual purchase price you paid using your card, after deducting any compensation you can receive by other means, such as a warranty on the item or a claim against a transit company. There may be a fairly low individual limit (such as $2,500) for an item classified as jewellery, a watch or fine art. Additionally, there may be an annual claim limit, such as $100,000.

It usually doesn’t matter whether you bought the item in a physical store or on the internet. Some policies may exclude goods purchased overseas.

You need to lodge a claim directly with the card issuer’s partner insurance company, not with the card issuer, and this must normally be done within 30 days of the loss, theft or damage. Details on how to make a claim may have been supplied in a printed booklet sent by the card issuer when you first opened the account. Alternatively, you can usually find information about the claims procedure online, as a link in your card’s web page.

You will need a receipt or other written proof of purchase of the item with your card, showing the date and amount paid. As well as this you must prove your loss, and a police report may be necessary. In the case of a claim for damage, the damaged item must be retained for inspection if required.

The insurer will have a dispute resolution procedure, set out in the purchase protection policy documentation received with the card, or available online.