I would generally not recommend paying for a third party extended warranty. They are overpriced and usually cost even more. than the repairs they are supposed to cover, making them pointless.
But if your credit card company offers to extend the manufacturer’s warranty for free, that’s another story.
And believe it or not, that’s what a lot of credit card companies are doing these days. If your fancy Samsung TV won’t turn on six months after Samsung’s warranty expires, there’s a damn good chance that Chase will actually buy you a new one.
So let’s explore extended credit card warranty protection. What’s this? How it works? What does it cover? How do you know if you already have one?
What is an extended credit card guarantee?
When you purchase a product with a credit card that comes with a manufacturer’s warranty, your credit card’s extended warranty automatically extends that warranty by one year (in rare cases, two years).
So if you buy a Dyson vacuum cleaner with a two-year manufacturer’s warranty, your credit card adds another year, for a total of three years.
If it’s something like a refurbished Amazon Fire tablet with a short 90-day warranty, your credit card will still extend it for a year, for a total of 15 months.
It’s worth noting that most credit card extended warranties only cover warranties up to three years. Thus, your IKEA UTESPELARE desk, which is covered by a 10-year warranty, does not receive a bonus year. (But were you really going to keep it for 11 years?)
In any case, if the product fails during the extended warranty period and not the original manufacturer’s warranty period, you will file a claim with your credit card company. These are the ones who will reimburse you for the cost of the repair/replacement.
How does the extended warranty work?
Let’s say you buy a PlayStation 5 with your Chase Freedom Flex.CM card. The Sony Manufacturer’s Warranty guarantees that your PS5 will be free from defects for one year. Big.
Then, at the 15th month, your PS5 won’t boot. You call Sony support and they say that since your PS5 is out of warranty, you will have to pay $300 for repairs.
Ugh.
Then you remember that your Chase Freedom FlexCM the card includes an extended warranty. So, you collect the necessary documents (original receipt from the store, a copy of the Sony warranty and a repair estimate from Sony) and file a claim with Chase.
Chase’s third party insurance company, Indemnity Insurance of North America, then approves the claim and Chase provides you with a $300 credit statement to cover the repair.
Case is closed!
How to file a claim?
Your card benefits guide will have instructions on how and where to apply.
To continue using Chase as an example, you will create an account with Card Benefit Services and must provide the following within 90 days of the break:
- Scan of the original store receipt.
- Copy/PDF of local manufacturer’s warranty.
- The serial number of the broken item.
- A screenshot of your account statement showing the original purchase.
- In some cases, you may also be required to provide a copy of the diagnostic/repair quote from the service center so that your credit card company can refund you the amount.
- Finally, if you already have a third-party warranty, you’ll need to enable that as well, as the extended warranty is secondary to any additional warranty protection you’ve bought (re-emphasizing why you shouldn’t buy it).
Source: Chase Card Benefit Services, screen shot by Chris Butch.
Then, within a week or two, you will receive a response from the benefits administrator whether your application was approved or denied.
In the first case, you will receive a loan for repairs or replacements.
In case of refusal, they can simply ask for additional documents. Or maybe you just got unlucky because your purchase didn’t meet the requirements in the first place.
So, to save you time, what is covered by the extended credit card warranty and what is not?
What is covered by the extended warranty (and what is not)?
What does it cover
An extended credit card warranty will generally cover any devices, electronics, consoles, furniture, tools, or other products covered by a manufacturer’s warranty. Surprisingly, this even applies to purchases made internationally.
The list of categories and products covered is wide, so it actually makes sense to narrow it down based on what is not covered.
that it does not cover
An extended credit card guarantee generally does not cover:
- Goods with a manufacturer’s warranty of three years or more.
- Cars, boats, planes and other types of personal transport.
- Items purchased for resale, professional or commercial use (such as video equipment for your small business).
- Software.
- Used or pre-owned items (certified/refurbished items are actually covered if they are covered by a warranty of up to three years).
- Rented or leased items.
- Medical equipment.
- Modification damage.
- Unique items.
- All living things (plants, seeds, etc.).
- Costs that are not covered by the original manufacturer’s warranty (delivery both ways, deductibles, etc.).
- Permanent fixtures (eg ceiling fans).
The extended warranty now covers your smartphone, but it’s important to remember that this is only an extension of the original manufacturer’s warranty. It does not cover cracks, breakage or theft – only manufacturer defects.
However, your credit card may include cell phone protection as a perk that does cover theft and break-in, so check out your guide to benefits.
Best Credit Cards for Extended Warranty Protection
Overall: Chase Freedom FlexCM
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Pursuit of Freedom FlexCM My top choice for a credit card is to get extended warranty coverage for several reasons:
- Its $200 welcome bonus can help offset any major purchase you want to get an extended warranty on.
- 15 months at 0% interest can help you finance this big purchase.
Apply for Chase Freedom FlexCM or read our full review.
Large Purchase: Chase Sapphire Preferred®
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Chase Sapphire Preferred® is an excellent card for extended warranty protection because, while it doesn’t offer 0% APR, it does come with a huge signup bonus of 60,000 points worth $600 redeemable for cash or $750 redeemable for a trip . . However, you need to spend $4,000 for three months to get it up and running.
That’s why the popular “CSP” program is perfect for large cash purchases like a TV or home appliances – you’ll get a $600 discount and a generous extended warranty to cover it.
Apply for Chase Sapphire Preferred® or read our full review.
Travel: Capital One Venture X
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If you’re a frequent traveler and want to extend your manufacturer’s warranty on your luggage, cameras, and more, you might like the Capital One Venture X.
In addition to a one-year extended warranty, you can keep your options with 90-day return protection to help you return qualifying purchases that the store won’t take back. The extended warranty also covers damage or theft within 90 days of purchase. This card comes with $395 annual fee.
Apply for CapitalOne Venture X or read our full review.
For Savings on Essentials: American Express Blue Cash Preferred
If you don’t want to make a big purchase on Amazon and just want an extended warranty card to help you save on your essentials, check out Amex Blue Cash Preferred.
Right now, the card is offering a 6% refund on groceries and streaming, a 3% refund on transit and gasoline, 0% APR for 12 months, and a $300 signup bonus.
For more on the quirks of American Express cards, be sure to read “Should I Buy Amex Cards?”
What to Look for in an Extended Protection Warranty
Most extended warranty benefits look and act the same, but there are some key terms worth keeping an eye on, such as:
Length
Does the extended warranty add a year? Two years? Something other?
Also, how long can the OEM warranty apply for extended protection? Some cards expire in three years, some in five.
Coverage restrictions
The typical limit is $10,000 per application, $50,000 per cardholder, but coverage may vary.
Product Compliance
Is your major upcoming purchase covered by that particular card’s plan? Try calling them to be 100% sure before applying for a card under the wrong pretext.
Claim requirements
Finally, how many documents do you need to reassure an insurance agent? You can probably find most of these online (statements, warranty information, etc.), but you’ll want to save and scan your receipt at the store!
bottom line
An extended warranty is one of the best hidden benefits of modern bonus cards. Of course, it will take some patience and paperwork, but if you can get Chase to pay you a new dishwasher, that’s a lot better than the $200 sign up bonus!
To learn more about our top bonus cards, check out our selection of the best credit cards of the year.
Featured Image: Toy Andante/Shutterstock.com
