Credit Card Extended Warranty Insurance
There are a number of advantages to having a credit card in your wallet and some of these might not be known. Many credit cards, especially rewards cards, offer a variety of insurance. This includes everything from travel insurance purchase security insurance. When you use your credit card to buy something, you may be protecting yourself. One form of insurance that protects your purchases is extended warranty insurance.
What is extended warranty insurance?
Extended warranty insurance simply lengthens the amount of time an item is covered under warranty. Credit cards will typically either double the manufacturer’s warranty or extend the warranty by one year. The lesser of the two will be applied.
Most warranties under five years will automatically be granted extended warranty insurance. However, if the warranty period is more than five years, you may need to register the purchase with the insurance provider.
Some credit cards have a maximum lifetime liability amount. This amount may be for both extended warranty insurance and purchase security insurance. For example, you may receive coverage up to $60,000 per account for both extended warranty and purchase security insurance in your lifetime.
- Covered for 90 days from date of purchase
- Combined lifetime limit of $60,000 for purchase security and extended warranty insurance
- Must pay full purchase price with your credit card
What is covered under extended warranty insurance?
You're covered for any eligible purchase made with your credit card. You’ll receive coverage for the lesser of the cost to repair or the original purchase price.
What isn’t covered by extended warranty insurance?
There are a number of items that are typically excluded from extended warranty insurance. You can expect not to be covered for the following items:
- Any exclusions set out in the manufacturer’s warranty
- Aircrafts, their parts, and accessories
- Automobiles, trailers, motorboats, motorcycles, or any other motorized vehicles and their parts and accessories
- Used items, newly purchased items that have been rebuilt, refurbished, or returned and re-sold
- Animals or living plants
- Ancillary costs
- Consumable and perishable items
- Items purchased by and/or for a business or commercial purpose and commercial gain
- Dealer and assembler warranties
- Any other obligation other than those specifically covered under the original manufacturer’s warranty
- Items with a lifetime warranty
You can also expect your claim will be denied if the loss is resulting from:
- Misuse or abuse
- Willful acts or omissions and improper installation and alteration
- Normal wear and tear
- Delay, loss of use, or consequential damages
- Inherent product defects
- Mysterious disappearance
- Theft from a vehicle unless it’s locked and there are visible signs of forced entry
- Flood, earthquake, or radioactive contamination
- Hostilities of any kind (including war, invasion, terrorism, rebellion, or insurrection)
- Confiscation by authorities, risk of contraband, or illegal activity
- Incidental and consequential damages, including bodily injury, property, punitive, and exemplary damages, including bodily injury, property, punitive and exemplary damages, and legal damages
- Loss while installing or receiving repairs
- Insects or vermin
- One-of-a-kind items that cannot be replaced
- Products with an unconditional guarantee
- Inherent product defects
- Mechanical failure or product defects covered by product recall
What is reimbursed in an extended warranty insurance claim?
In most cases, when you file a claim to use your credit card extended warranty insurance, you’ll find that it’s the provider’s decision how to go about satisfying the claim. This means it’ll decide whether the item will be repaired, rebuilt, replaced, or reimbursed up to the amount charged to your credit card and no more than the original purchase price.
How to make an extended warranty claim?
In order to make a claim, you should call your insurance provider immediately. Some may require you to fill out a repair form or report claim formally. There are often a number of time restrictions associated with when you must call, report the incident, file a claim, and provide information regarding incident. Therefore, ensure you read your specific insurance information carefully and have a good understanding of the timelines associated with filing a claim.
You should always report the claim prior to proceeding with any repairs or replacement in order to ensure you receive coverage.
Many insurance providers require you to provide some—if not all—of the following information:
- Personal details (includes: name, address, telephone number, and account number)
- Details of occurrence (includes: description of item, date of occurrence, amount of damage, and the cause of the lost damage)
- A copy of original store receipt
- A copy of the credit card slip
- A copy of your account statement showing the charge to your card
- A copy of original manufacturer’s warranty
- A copy of the repair bill or estimate from the manufacturer’s authorized repair facility
- A copy of the original store receipt for the replacement item, if applicable
If claim is on an item that was a gift, the account holder must make the claim, not the recipient.
The devil is in the details
Perhaps the biggest thing to be aware of about extended warranty insurance is to find out if your item will be covered prior to relying on credit card insurance. Also, it’s important to note the timelines your insurance provider has outlined for filing claims. Note that the amount of coverage is very comparable between cards so you may decide what card to get based on the simplicity of filing a claim, what items aren’t included under warranty, or other features you like the most.
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