Several credit cards offer purchase protection, which acts as insurance against an item being stolen or damaged for a certain period of time after you buy it.
Here's a look at how purchase protection programs work.
What is purchase protection?
Sometimes called damage protection, purchase protection ensures goods against theft or accidental damage for a limited time. Depending on the credit card, the coverage amount and the duration of the protection may differ. It's important to understand that if you simply lose an item, as opposed to it being stolen, it might not be covered. And you'll usually be required to file a police report if you are claiming it as stolen.
Note that purchase protection is different from price protection and extended warranty coverage, other credit card benefits you might be eligible for. While extended warranty coverage offers more comprehensive damage protection, purchase protection gives you more protection in case of theft.
How to use purchase protection
To take advantage of this benefit, first review your card's benefit statement to see whether you are eligible for reimbursement if a purchase is damaged, stolen or lost.
Keep in mind that if you have a primary insurance policy covering the item, you must file a claim there before approaching your credit card issuer to use purchase protection.
For most claims, you'll typically need to submit:
- A copy of your credit card statement with the purchase.
- An itemized receipt from the retailer showing the purchase.
- A police report (for theft).
- A copy of the claim settlement from your primary insurance company, if applicable.
- A copy of your primary insurance declaration page, if applicable.
- Any other documentation needed to substantiate your claim.
Networks' purchase protection, compared
| Visa* | MasterCard* | American Express | |
|---|---|---|---|
| Duration | 90 days | 120 days (90 days for NY residents) | Up to 90 days, varies by card |
| Coverage | $500 per claim, $50,000 per cardholder | $1,000 per claim, $50,000 per cardholder | $1,000 per claim, $50,000 per year† |
| What's covered | Theft, damage | Theft, damage | Theft, damage‡ |
| Excluded items | |||
| Gift coverage | Gifts are covered as long as they were purchased using an eligible card | Gifts are covered as long as they were purchased using an eligible card | Gifts are covered as long as they were purchased using an eligible card |
| Cards covered | Eligible Visa Signature cards | Eligible World and World Elite MasterCard cards | Eligible American Express cards |
| Registration | Purchases are automatically eligible | Purchases are automatically eligible | Purchases are automatically eligible |
| Additional restrictions | Coverage is secondary | Coverage is secondary | Coverage is secondary |
| Source | Guide to Visa Signature benefits via CapitalOne |
American Express Insurance Benefit: Purchase Protection
- Purchase Protection is an embedded benefit of your Card Membership and requires no enrollment. It can help protect Covered Purchases made on your Eligible Card when they’re accidentally damaged, stolen, or lost, for up to 90 days from the Covered Purchase date. The coverage is limited up to $10,000 per occurrence, up to $50,000 per Card Member account per calendar year. Coverage Limits Apply.
- Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.
- Please visit americanexpress.com/benefitsguide for more details.
- Underwritten by AMEX Assurance Company.
The bottom line
Purchase protection offers short-term insurance for your everyday purchases, in case the items are stolen or damaged. However, the damage coverage comes with several exclusions, so you may want to see if your card also offers extended warranty coverage.
