Which credit cards offer the best extended warranty and purchase protection?
Fact checked by Lubna Umar
Updated May 22, 2025
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Top 3 purchase protection and extended warranty credit cards
What's the best purchase protection credit card?
There are few realizations quite as crushing as that moment you lift up your gym bag to find it mysteriously lighter than it was 30 minutes ago, and your pricey new headphones vanished. Actually, the only thing comparably exasperating might be for those headphones to fizzle out just a few weeks after their warranty expires.
But before you throw the busted Beats against the wall, take a deep breath and read through your credit card agreement. Does it come with an extended warranty and/or purchase protection? If so, follow our general guidelines below for either being reimbursed or getting the item replaced. If not, write it off as a learning experience and consider applying for one of the following cards that will have your back next time.
Best extended warranty and purchase protection card overall
up to 10,000 points
Welcome Bonus
$860
First Year Value
$360
Annual Value
Welcome Bonus: Earn 4 points per $1 spent on eligible restaurant, grocery, digital media, membership, and household utility purchases until $10,000 is spent annually. Plus, earn up to 10,000 bonus points†.
Get this card if you...
- want to earn rewards on everyday purchases such as groceries
- value flexible redemption options
- want to avoid paying any annual fees
Annual Fee & Annual Interest Rates
$0
Annual Fee
21.99%
Purchase
22.99%
Cash Advance
22.99%
Balance Transfer
Our Take
The MBNA Rewards Platinum Plus® Mastercard® is a no-annual-fee credit card that allows cardholders to earn rewards points on everyday purchases, with accelerated rates in categories such as groceries, restaurants, digital media, memberships, and household utilities. These points can be redeemed flexibly for travel, merchandise, gift cards, or cash back, providing versatility to suit various spending habits and preferences.
Eligibility
Good (620 - 670)
Recommended Credit Score
Pros
- No annual fee
- Accelerated rewards on groceries, restaurants, and more
- Simple point structure with flexible redemption options
- Generous introductory bonus of up to 10,000 points
- No cap on total points earned
Cons
- Lower cash back redemption rate compared to designated cash back cards
- Limited benefits beyond rewards
- Points system may not appeal to cash back enthusiasts
- Higher earning categories have a spending cap of $10,000 annually
- Better suited for travel rewards than cash back
Annual Interest Rates
21.99%
Purchase
22.99%
Cash Advance
22.99%
Balance Transfer
Fees
$0
Annual Fee
2.50%
Foreign Transaction
3.00%
Balance Transfer
Rewards MBNA Rewards
10,000
Get up to 10,000 MBNA Rewards points†† as an introductory bonus (see details below)
Insurance Benefits
$1,000
Mobile device insurance amount
For the first 90 days of account opening, new cardholders will earn an additional 2 points/$1 spent on eligible restaurant, grocery, digital media, membership, and household utility purchases (on top of the regular earn rate of 2 points/$1 spent) until $10,000 is spent annually in each category.
Plus, new cardholders can get up to 10,000 bonus MBNA Rewards points †† when they sign up for paperless e-statements (5,000 points†) and make $500 or more in purchases within the first 90 days (another 5,000 points†).
Our Take
The MBNA Rewards Platinum Plus® Mastercard® is a no-annual-fee credit card that allows cardholders to earn rewards points on everyday purchases, with accelerated rates in categories such as groceries, restaurants, digital media, memberships, and household utilities. These points can be redeemed flexibly for travel, merchandise, gift cards, or cash back, providing versatility to suit various spending habits and preferences.
Eligibility
Good (620 - 670)
Recommended Credit Score
Pros
- No annual fee
- Accelerated rewards on groceries, restaurants, and more
- Simple point structure with flexible redemption options
- Generous introductory bonus of up to 10,000 points
- No cap on total points earned
Cons
- Lower cash back redemption rate compared to designated cash back cards
- Limited benefits beyond rewards
- Points system may not appeal to cash back enthusiasts
- Higher earning categories have a spending cap of $10,000 annually
- Better suited for travel rewards than cash back
Annual Interest Rates
21.99%
Purchase
22.99%
Cash Advance
22.99%
Balance Transfer
Fees
$0
Annual Fee
2.50%
Foreign Transaction
3.00%
Balance Transfer
Rewards MBNA Rewards
10,000
Get up to 10,000 MBNA Rewards points†† as an introductory bonus (see details below)
Insurance Benefits
$1,000
Mobile device insurance amount
For the first 90 days of account opening, new cardholders will earn an additional 2 points/$1 spent on eligible restaurant, grocery, digital media, membership, and household utility purchases (on top of the regular earn rate of 2 points/$1 spent) until $10,000 is spent annually in each category.
Plus, new cardholders can get up to 10,000 bonus MBNA Rewards points †† when they sign up for paperless e-statements (5,000 points†) and make $500 or more in purchases within the first 90 days (another 5,000 points†).
The MBNA Rewards Platinum Plus® Mastercard® might not be the most lucrative rewards card on the list, and it might not offer the longest coverage, but the sheer combination of great rewards, essential insurance and no annual fee is tough to beat.
- Automatic warranty extension: Doubles the manufacturer's warranty up to an additional year on eligible purchases, providing extended coverage without additional cost
- 90-day purchase protection: Insures new purchases against damage or theft, giving you valuable time to ensure your items are working properly
- Rewards with no fee: Earn 2 MBNA Rewards points for every $1 spent†† in several categories, including groceries, restaurants, digital media, memberships, and household utilities.
- No income requirements: Makes the card accessible to a broader range of Canadians
Disclosures:
-
‡, ††, ✪, ***, Terms and Conditions apply.
This offer is not available for residents of Quebec. For residents of Quebec, please click here.
Sponsored advertising. MBNA is a division of The Toronto-Dominion Bank (TD) and TD is not responsible for the contents of this site including any editorials or reviews that may appear on this site. For complete information on this MBNA credit card, please click on the “Apply Now” button.
The Toronto-Dominion Bank is the issuer of this credit card. MBNA is a division of The Toronto-Dominion Bank. ®MBNA and other-trademarks are the property of The Toronto-Dominion Bank.
Best cash back card with purchase protection
10% cash back
Welcome Bonus
$484
First Year Value
$384
Annual Value
Welcome Bonus: Earn 10% cash back for 2 months† (up to $100). Expires Jan 30, 2026
Get this card if you...
- want flexible cash back categories
- want unlimited cash back
- want to avoid paying an annual fee
Annual Fee & Annual Interest Rates
$0
Annual Fee
19.95% - 24.95%
Purchase
19.95%
Cash Advance
1.95% - 19.95%
Balance Transfer
Our Take
The Tangerine Money-Back Credit Card is a no-annual-fee cash back card that allows cardholders to earn a higher cash back rate in two spending categories of their choice, such as groceries, gas, or restaurants, and a lower rate on all other purchases. By opening a Tangerine Savings Account and directing cash back earnings there, a third higher rate cash back category can be added. Additional benefits include purchase assurance and extended warranty protection, with cash back rewards automatically applied monthly.
Eligibility
Good (620 - 670)
Recommended Credit Score
$12,000
Required Annual Personal Income
Pros
- No annual fee
- Choose the spending categories where you want to earn the most cash back
- Unlimited cash back—no maximum spending limit for any purchase category
- Cash back is paid out monthly rather than annually
- Periodically includes a special welcome offer where you can get extra cash back
- 1.95% interest on balance transfers for the first 6 months (1% transfer fee applies)*
Cons
- Regular cash back rates are still lower than what you can get from a card with an annual fee
- Limited extra perks or benefits beyond the cash back and balance transfer promotion
- Generally not a good fit for shopping at warehouse clubs or wholesale grocers like Costco or Walmart
- Tangerine does not have any physical bank branches
Annual Interest Rates
19.95% - 24.95%
Purchase
19.95%
Cash Advance
1.95% - 19.95%
Balance Transfer
1.95%
Balance Transfer (Introductory)
24.95%
Penalty
Fees
$0
Annual Fee
2.50%
Foreign Transaction
3.00%
Balance Transfer
$3.5
Cash Advance
$25
Over The Limit Penalty
$25
Return Penalty
Rewards cash back
2%
Earn 2% cash back on 2 categories of your choice (e.g. groceries, recurring bills, gas, drug stores, etc.)
3
Get a Tangerine Savings account and add a 3rd 2% cash back category.
0.5%
Earn 0.50% on all your other everyday purchases.
Earn 10% cash back for 2 months† (up to $100).
Our Take
The Tangerine Money-Back Credit Card is a no-annual-fee cash back card that allows cardholders to earn a higher cash back rate in two spending categories of their choice, such as groceries, gas, or restaurants, and a lower rate on all other purchases. By opening a Tangerine Savings Account and directing cash back earnings there, a third higher rate cash back category can be added. Additional benefits include purchase assurance and extended warranty protection, with cash back rewards automatically applied monthly.
Eligibility
Good (620 - 670)
Recommended Credit Score
$12,000
Required Annual Personal Income
Pros
- No annual fee
- Choose the spending categories where you want to earn the most cash back
- Unlimited cash back—no maximum spending limit for any purchase category
- Cash back is paid out monthly rather than annually
- Periodically includes a special welcome offer where you can get extra cash back
- 1.95% interest on balance transfers for the first 6 months (1% transfer fee applies)*
Cons
- Regular cash back rates are still lower than what you can get from a card with an annual fee
- Limited extra perks or benefits beyond the cash back and balance transfer promotion
- Generally not a good fit for shopping at warehouse clubs or wholesale grocers like Costco or Walmart
- Tangerine does not have any physical bank branches
Annual Interest Rates
19.95% - 24.95%
Purchase
19.95%
Cash Advance
1.95% - 19.95%
Balance Transfer
1.95%
Balance Transfer (Introductory)
24.95%
Penalty
Fees
$0
Annual Fee
2.50%
Foreign Transaction
3.00%
Balance Transfer
$3.5
Cash Advance
$25
Over The Limit Penalty
$25
Return Penalty
Rewards cash back
2%
Earn 2% cash back on 2 categories of your choice (e.g. groceries, recurring bills, gas, drug stores, etc.)
3
Get a Tangerine Savings account and add a 3rd 2% cash back category.
0.5%
Earn 0.50% on all your other everyday purchases.
Earn 10% cash back for 2 months† (up to $100).
The Tangerine Money-Back Credit Card is another great no annual fee card that earns rewards, with the Tangerine Card earning cash back instead of points:
- Extended warranty without premium fees: Doubles the manufacturer's warranty up to an additional year with no annual fee, making it our top recommendation for budget-conscious shoppers
- 90-day purchase assurance: Covers eligible items against loss, theft, or damage for the first three months after purchase
- Unlimited coverage for eligible items: There’s no annual cap on the number of claims you can make, unlike some competitor cards
- Easy online claims process: Tangerine's digital-first approach extends to their streamlined warranty claims system
- Cash back rewards: Earn 2% cash back on two categories of your choice (e.g. groceries, recurring bills, gas, drug stores, etc.)
Disclosures:
- *Terms and Conditions apply
Best premium card with purchase protection coverage
up to $650 in value†
Welcome Bonus
$1,220
First Year Value
$570
Annual Value
Welcome Bonus: Get up to $650 in value including $40 cash back each month in your first year. Plus get the $120 annual fee waived in the first year.†
Get this card if you...
- are a high-earner looking to earn cash back
- want great perks like travel insurance and concierge services
- value a great welcome offer
Annual Fee & Annual Interest Rates
$120
Annual Fee
21.99%
Purchase
23.99%
Cash Advance
23.99%
Balance Transfer
Our Take
The BMO CashBack® World Elite®* Mastercard®* is a premium credit card offering elevated cash back rates on categories such as groceries, transit, gas, and recurring bill payments. Cardholders benefit from complimentary roadside assistance, comprehensive insurance coverage, and flexible cash back redemption options, so you can maximize your rewards on everyday spending.
Eligibility
Excellent (740+)
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Pros
- Valuable sign-up bonus
- High 5% cash back rate on groceries
- Free roadside assistance
- Excellent extended warranty and purchase protection terms
Cons
- Restrictive spending limits for most cash back categories
- Sign-up bonus structure is head-scratchingly complicated
- High minimum income requirements
Annual Interest Rates
21.99%
Purchase
23.99%
Cash Advance
23.99%
Balance Transfer
Fees
$120
Annual Fee
2.50%
Foreign Transaction
Rewards cash back
5%
Groceries: 5% cash back up to $500 spent per month ($25 in cash back)*
4%
Transit: 4% cash back up to $300 spent per month ($12 in cash back)*
3%
Gas: 3% cash back up to $300 spent per month ($9 in cash back)*
2%
Recurring Bills: 2% cash back up to $500 spent per month ($10 in cash back)*
1%
Everything Else: 1% cash back, unlimited*
Insurance Benefits
$2,000,000
Emergency medical insurance amount
$500,000
Travel accident insurance amount
$65,000
Rental car insurance amount
Get up to $650 in value including $40 cash back each month in your first year. Plus get the $120 annual fee waived in the first year.†
Plus, get a 0% introductory interest rate on Balance transfers for 12 months with a 2% transfer fee.*
Also, enjoy six months of Instacart+ and a $10 monthly Instacart credit when you enroll your eligible BMO Credit Card.*
*Terms and Conditions apply,
Our Take
The BMO CashBack® World Elite®* Mastercard®* is a premium credit card offering elevated cash back rates on categories such as groceries, transit, gas, and recurring bill payments. Cardholders benefit from complimentary roadside assistance, comprehensive insurance coverage, and flexible cash back redemption options, so you can maximize your rewards on everyday spending.
Eligibility
Excellent (740+)
Recommended Credit Score
$80,000
Required Annual Personal Income
$150,000
Required Annual Household Income
Pros
- Valuable sign-up bonus
- High 5% cash back rate on groceries
- Free roadside assistance
- Excellent extended warranty and purchase protection terms
Cons
- Restrictive spending limits for most cash back categories
- Sign-up bonus structure is head-scratchingly complicated
- High minimum income requirements
Annual Interest Rates
21.99%
Purchase
23.99%
Cash Advance
23.99%
Balance Transfer
Fees
$120
Annual Fee
2.50%
Foreign Transaction
Rewards cash back
5%
Groceries: 5% cash back up to $500 spent per month ($25 in cash back)*
4%
Transit: 4% cash back up to $300 spent per month ($12 in cash back)*
3%
Gas: 3% cash back up to $300 spent per month ($9 in cash back)*
2%
Recurring Bills: 2% cash back up to $500 spent per month ($10 in cash back)*
1%
Everything Else: 1% cash back, unlimited*
Insurance Benefits
$2,000,000
Emergency medical insurance amount
$500,000
Travel accident insurance amount
$65,000
Rental car insurance amount
Get up to $650 in value including $40 cash back each month in your first year. Plus get the $120 annual fee waived in the first year.†
Plus, get a 0% introductory interest rate on Balance transfers for 12 months with a 2% transfer fee.*
Also, enjoy six months of Instacart+ and a $10 monthly Instacart credit when you enroll your eligible BMO Credit Card.*
*Terms and Conditions apply,
The BMO CashBack® World Elite®* Mastercard®* is one of the very best credit cards in Canada, scoring highly in several categories in our annual Credit Card Awards (and winning best cash back and best grocery credit card):
- Exceptional extended warranty coverage: Automatically doubles the manufacturer's warranty up to an additional year, giving you extra peace of mind on major purchases
- Comprehensive purchase protection: Covers eligible items against theft or damage for 90 days from the date of purchase, one of the most generous policies on the market
- Up to $1,000 per claim: Much higher than average claim limits make this ideal for protecting valuable electronics and appliances
- Seamless claims process: BMO's streamlined system makes filing warranty claims straightforward, with dedicated support representatives
- Pairs perfectly with cash back benefits: Earn up to 5% cash back while enjoying premium purchase protections, making this a top recommendation for Canadians looking for both rewards and security
Disclosures:
- *Terms and conditions apply.
-
BMO is not responsible for maintaining the content on this site. Please click on the Apply now link for the most up to date information.
Best ultra-premium card with purchase protection
up to 100,000 points
Welcome Bonus
$471
First Year Value
$0
Annual Value
Welcome Bonus: Earn up to 100,000 Membership Rewards® points* - that’s up to $1,000 towards a weekend away.
Get this card if you...
- are a frequent traveler who wants luxury perks like lounge access
- want to rack up rewards quickly
- want great travel insurance, perks and concierge services
Annual Fee & Annual Interest Rates
$799
Annual Fee
21.99% - 29.99%
Purchase
Our Take
The American Express Platinum Card® is a premium travel rewards credit card offering elevated Membership Rewards® points on eligible purchases, with a substantial welcome bonus for new cardholders. Cardholders enjoy exclusive benefits such as access to over 1,400 airport lounges worldwide† through the American Express Global Lounge Collection™, comprehensive travel insurance, and personalized concierge services.
Eligibility
Excellent (740+)
Recommended Credit Score
Pros
- Access to a wide range of luxury perks, including premium concierge service
- Complimentary lounge membership providing access to over 1,400+ airport lounges worldwide†
- Annual statement credits: $200 annual travel credit, $200 annual dining credit
- Special insurance coverages like trip cancellation/interruption, flight delay, lost or stolen baggage and rental car theft & damage.
- Provides extended warranty (2 years) and purchase protection (120 days).
Cons
- High annual fee of $799, one of the heftiest among Canadian cards
- The rewards system can be complicated, especially for users not familiar with maximizing credit card points
- Requires good to excellent credit for eligibility
Annual Interest Rates
21.99% - 29.99%
Purchase
30%
Penalty
Fees
$799
Annual Fee
2.50%
Foreign Transaction
$45
Return Penalty
Rewards Membership Rewards
2x
points for every $1 in Card purchases on eligible dining and food delivery in Canada
2x
points for every $1 in Card purchases on eligible travel
1x
point for every $1 in all other Card purchases
1
additional point on Amex Travel Online for eligible hotel or car rental bookings
Insurance Benefits
$5,000,000
Emergency medical insurance amount
$500,000
Travel accident insurance amount
$1,000
Hotel burglary insurance
$85,000
Rental car insurance amount
Earn up to 100,000 Membership Rewards® points - that’s up to $1,000 towards a weekend away! Here's how:
New Platinum® Cardmembers, earn 70,000 Welcome Bonus points after you charge $10,000 in net purchases to your Card in your first 3 months of Cardmembership
Plus, earn 30,000 points when you make a purchase between 15 and 17 months of Cardmembership
Terms and Conditions Apply.
Our Take
The American Express Platinum Card® is a premium travel rewards credit card offering elevated Membership Rewards® points on eligible purchases, with a substantial welcome bonus for new cardholders. Cardholders enjoy exclusive benefits such as access to over 1,400 airport lounges worldwide† through the American Express Global Lounge Collection™, comprehensive travel insurance, and personalized concierge services.
Eligibility
Excellent (740+)
Recommended Credit Score
Pros
- Access to a wide range of luxury perks, including premium concierge service
- Complimentary lounge membership providing access to over 1,400+ airport lounges worldwide†
- Annual statement credits: $200 annual travel credit, $200 annual dining credit
- Special insurance coverages like trip cancellation/interruption, flight delay, lost or stolen baggage and rental car theft & damage.
- Provides extended warranty (2 years) and purchase protection (120 days).
Cons
- High annual fee of $799, one of the heftiest among Canadian cards
- The rewards system can be complicated, especially for users not familiar with maximizing credit card points
- Requires good to excellent credit for eligibility
Annual Interest Rates
21.99% - 29.99%
Purchase
30%
Penalty
Fees
$799
Annual Fee
2.50%
Foreign Transaction
$45
Return Penalty
Rewards Membership Rewards
2x
points for every $1 in Card purchases on eligible dining and food delivery in Canada
2x
points for every $1 in Card purchases on eligible travel
1x
point for every $1 in all other Card purchases
1
additional point on Amex Travel Online for eligible hotel or car rental bookings
Insurance Benefits
$5,000,000
Emergency medical insurance amount
$500,000
Travel accident insurance amount
$1,000
Hotel burglary insurance
$85,000
Rental car insurance amount
Earn up to 100,000 Membership Rewards® points - that’s up to $1,000 towards a weekend away! Here's how:
New Platinum® Cardmembers, earn 70,000 Welcome Bonus points after you charge $10,000 in net purchases to your Card in your first 3 months of Cardmembership
Plus, earn 30,000 points when you make a purchase between 15 and 17 months of Cardmembership
Terms and Conditions Apply.
For $799 of course the American Express The Platinum card comes with purchase protection and extended warranty. You get an additional one year on top of the manufacturer's warranty and 120 days of purchase protection.
- Extended coverage period: The Platinum Card offers up to 120 days of purchase protection coverage, 30 days longer than the standard 90-day window offered by most competitor cards
- Generous claim limits: Provides coverage up to $1,000 per occurrence for eligible items, with higher annual aggregate limits than many other premium cards
- Comprehensive protection: Covers theft, accidental damage, and in some cases loss of items purchased with your card
- Global coverage: Your purchases are protected worldwide, not just in Canada, making it ideal for international shoppers
- Streamlined claims process: American Express is known for its exceptional customer service, with a dedicated claims team for Platinum cardholders
- No deductibles: Unlike some insurance policies, Amex typically doesn't require deductibles on purchase protection claims
Disclosures:
-
Contact American Express for the most up-to-date referral bonus figures.
American Express is not responsible for maintaining or monitoring the accuracy of information on this website. For full details and current product information, click the Apply Now link. If you apply and get approved for an American Express Card, (I/we) may receive compensation from American Express, which can be in the form of monetary payment.
Best secured card with purchase protection
$0
First Year Value
$0
Annual Value
Get this card if you...
- are looking to improve your credit
- want a secured card with a higher limit
- want to take advantage of an interest-free grace period
Annual Fee & Annual Interest Rates
$0
Annual Fee
19.99%
Purchase
19.99%
Cash Advance
19.99%
Balance Transfer
Our Take
The Home Trust Secured Visa is designed for individuals aiming to build or rebuild their credit, offering two options: a no-annual-fee card with a standard interest rate or a low-interest version with an annual fee. Cardholders benefit from features such as purchase protection and extended warranty coverage, but are required to provide a security deposit, which determines the credit limit.
Eligibility
Good (620 - 670)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
- Reports to credit bureaus every month, helping to quickly build your credit rating.
- Requires a $500 minimum deposit, with the credit limit scaling on a 1:1 basis all the way up to $10,000.
- High approval rate
- Monthly credit reporting to major credit agencies every month, expediting the credit repair or improvement process
- Low foreign transaction fee
- Cardholders get a 21-day no-interest grace period
- Low monthly minimum payment options; pay either the greater of $10 or 3% of the monthly balance.
Cons
- Standard interest rate although, if you opt for the annual fee version of the card, it comes down
- No rewards or perks
- Charges a monthly inactivity fee of $12 if the card is not used for a period of 12 months.
- Despite a high approval rate, there are still chances of being denied based on deal-breaking factors
- No welcome bonus offer as it is designed for credit building
Annual Interest Rates
19.99%
Purchase
19.99%
Cash Advance
19.99%
Balance Transfer
Fees
$0
Annual Fee
2.50%
Foreign Transaction
Our Take
The Home Trust Secured Visa is designed for individuals aiming to build or rebuild their credit, offering two options: a no-annual-fee card with a standard interest rate or a low-interest version with an annual fee. Cardholders benefit from features such as purchase protection and extended warranty coverage, but are required to provide a security deposit, which determines the credit limit.
Eligibility
Good (620 - 670)
Recommended Credit Score
$0
Required Annual Personal Income
$0
Required Annual Household Income
Pros
- Reports to credit bureaus every month, helping to quickly build your credit rating.
- Requires a $500 minimum deposit, with the credit limit scaling on a 1:1 basis all the way up to $10,000.
- High approval rate
- Monthly credit reporting to major credit agencies every month, expediting the credit repair or improvement process
- Low foreign transaction fee
- Cardholders get a 21-day no-interest grace period
- Low monthly minimum payment options; pay either the greater of $10 or 3% of the monthly balance.
Cons
- Standard interest rate although, if you opt for the annual fee version of the card, it comes down
- No rewards or perks
- Charges a monthly inactivity fee of $12 if the card is not used for a period of 12 months.
- Despite a high approval rate, there are still chances of being denied based on deal-breaking factors
- No welcome bonus offer as it is designed for credit building
Annual Interest Rates
19.99%
Purchase
19.99%
Cash Advance
19.99%
Balance Transfer
Fees
$0
Annual Fee
2.50%
Foreign Transaction
The Home Trust Secured Visa is a refreshing option for those with bad or damaged credit, or just new to credit altogether. It combines credit-building potential and essential security and insurance protections:
- Extended warranty for credit builders: This is one of the few secured cards offering warranty extension, doubling manufacturer coverage up to an additional year
- Purchase security for 90 days: Protects eligible new purchases against loss, theft or damage, rare for a secured credit card
- Security deposit required: It’s not all great. The card requires a minimum $500 deposit, but this enables access to purchase protections typically reserved for those with established credit
- No annual fee: There’s $0 annual fee with Home Trust, which is a rarity amongst secured credit cards in Canada
Disclosures:
- *Terms and Conditions apply
What is credit card purchase protection?
Purchase protection is one of the most valuable but often overlooked benefits that comes with many Canadian credit cards. We recommend understanding this feature, as it can save you thousands of dollars on damaged or stolen items.
In simple terms, purchase protection insurance provides coverage if eligible items you buy with your credit card are damaged, lost, or stolen within a specific timeframe after purchase (usually 90-120 days, depending on the card).
Purchase protection coverage
Purchase protection covers items that have been stolen or significantly damaged.
- Broader protection: Covers theft and significant accidental damage
- Short-term coverage: Typically limited to 90-120 days after purchase
- User error included: Many policies cover accidents that are your fault•
If your new smartphone slips from your hand and shatters its screen two weeks after purchase, purchase protection—not the warranty—would typically cover repair or replacement.
Extended warranty coverage
Credit card extended warranty double the original manufacturer's warranty for up to 2 years.
- Doubles the original coverage period: Adds up to 1-2 additional years of identical protection
- Maintains same terms: Honors the same conditions as the original warranty
- Provides continuity: May still offer protection even if the manufacturer goes out of business
- Requires no registration: Activates automatically when you make the purchase
Each insurance policy lists a variety of item categories that are excluded from coverage. The excluded categories vary from one card to the next, but they generally include:
- Hard currency; traveler’s cheques; event tickets; gift cards/certificates
- Animals and living plants
- Consumable or perishable goods
- Used/secondhand items and refurbished items
- Motorized vehicles
- Jewelry, gemstones, and precious metals
- Items used commercially (e.g. office equipment)
- Unique or irreplaceable items
Not all extended warranty and purchase protection policies will cover items purchased outside Canada; or if the item was purchased outside Canada, the manufacturer’s warranty must at least be valid within Canada for the extended warranty to apply.
Pros and cons of purchase protection
Pros and cons of extended warranty protection
Do you need purchase protection?
Purchase protection is a valuable insurance benefit, as it can save you money in case of defective or broken items. But do you need it?
You should consider a card with purchase protection if you:
- Purchase expensive appliances or electronics, or items that are fragile
- Live in areas with high theft rates
- Travel frequently, as this means your items are more prone to damage
You likely don’t need purchase protection if you:
- Rarely make major purchases
- Already have comprehensive insurance that covers your purchases
In our experience, purchase protection delivers the most value when you least expect to need it. We've found that many cardholders only discover this benefit when making a claim after damage occurs – often saving hundreds or thousands of dollars on a purchase they thought was a total loss.
FAQs
Cory Santos
Senior Reporter
Cory Santos is a finance writer, editor and credit card expert with nearly a decade of experience in personal finance. Cory joined Wise Publishing from BestCards, with bylines in numerous print and digital publications across North America, including the Miami Herald, BlogTO, Debt.ca, AOL, MSN and Medium as well as financial podcasts like KOFE Talk. He's also the creator and author of the annual Money.ca Credit Card Awards.
Tyler Wade
Personal finance content strategist & writer
Tyler Wade has worked in personal finance for over 5 years writing for brands like Ratehub, Forbes, KOHO, and now Money.ca.
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