We’ve previously covered credit card shopping benefits like Price Protection and Extended Warranty. Today, we begin to unravel another underutilized insurance implicit when making purchases with your premium credit card: Purchase Protection.
As the name implies, Purchase Protection is an insurance that covers specific purchased items if they are lost, stolen, or accidentally damaged within a specified period after the date of purchase. In the event of such loss, your credit card company may cover the repair of the item, replacement of the item, or reimbursement for the item.
All premium credit cards come with this benefit. But like all other credit card benefits, there’s plenty of fine print to make things complex.
In the most general sense, each credit card excludes Purchase Protection for specific items such as motorized vehicles, perishables, antiques, tickets, medical equipment, and computer software (not hardware). However, gifts for others are covered, as are purchases within and outside the United States.
It should be noted that with the exception of the Citi Prestige Card, Purchase Protection does not replace primary insurance. It pays in excess of valid and collectible insurance or indemnity (e.g., homeowner’s and renter’s insurance policies).
When claiming Purchase Protection with these other cards, you’ll still have to file a claim with your primary insurance and keep copies of all insurance documents, police reports, original itemized store receipts, and your card record of purchase.
But at least you can rest easy knowing that most of your new purchases will be replaced or reimbursed in the event of loss, theft, or accidental damage. Here’s the short on how our core cards stack up.
BEST Citi Prestige® Card
When you charge your purchase to the Citi Prestige Card or use Thank You points, you are automatically entitled to Purchase Protection. Pro Tip: This is the only elite credit card that offers Purchase Protection as primary coverage, meaning you just need to go through Citi and not your regular insurance. However, for New York residents the coverage is secondary.
Coverage time: 90 days from date of purchase for New York residents; 120 days from date of purchase for everyone else.
Amount allowed per claim and per year: $10,000 per claim; $50,000 maximum payout in claims per year.
Chase Sapphire Reserve®
When you buy an item in part or entirely on your Chase Sapphire Reserve Card or use Ultimate Rewards points, you are automatically entitled to Purchase Protection.
Coverage time: 120 days from date of purchase.
Amount allowed per claim and per year: $10,000 per claim; $50,000 maximum payout in claims per year.
American Express Platinum and Gold Cards
When you charge your purchase entirely to your American Express Card, you are automatically entitled to Purchase Protection.
Coverage time: 90 days from the date of purchase.
Amount allowed per claim and per year: $10,000 per claim; $50,000 maximum payout in claims per year.
U.S. Bank Altitude Reserve Visa Infinite® Card
When you charge your purchase entirely to your U.S. Bank Altitude Reserve Visa Infinite Card and/or use reward points obtained from the card, you are automatically entitled Purchase Security (the card’s version of Purchase Protection). Note that this card will cover theft and damage but not loss on an item.
Coverage time: 90 days from date of purchase.
Amount allowed per claim and per year: $10,000 per claim; $50,000 maximum payout in claims per year.
Luxury Cards: Mastercard® Black Card™, Mastercard® Gold Card™, Mastercard® Titanium Card™
When you charge your purchase entirely to your Luxury Card or use the card’s reward points, you are automatically entitled to Purchase Assurance (the cards’ version of Purchase Protection). Note that these cards will cover theft and damage but not loss on an item.
Coverage time: 90 days from date of purchase.
Amount allowed per claim and per year: $1,000 per claim; $50,000 maximum payout in claims per year.
WORST Chase Sapphire Preferred®
When you buy an item in part or entirely on your Chase Sapphire Reserve Card or use Ultimate Rewards points, you are automatically entitled to Purchase Protection.
Coverage time: 120 days from date of purchase.
Amount allowed per claim and per year: $500 per claim; $50,000 maximum payout in claims per year.
