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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.
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.
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.
You can also expect your claim will be denied if the loss is resulting from:
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.
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.
Many insurance providers require you to provide some—if not all—of the following information:
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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