The Best Credit Cards for Purchase Protection [2021]

BY 

Christine Krzyszton

- UPDATED: May 7, 2021   |    2

1. Credit Cards

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Unless you’ve had a recently purchased item lost, damaged, or stolen, chances are you’ve rarely (if ever) thought about purchase protection coverage on your credit card.

Even if you accidentally dropped that new flat-screen TV while trying to mount it on the wall, you’d probably think about making a claim on your homeowner’s insurance policy before using coverage from your credit card.

You’re not alone. According to industry studies, most consumers don’t understand the protection and coverage that comes with their credit cards, let alone utilize these benefits.

But there’s no need to go searching for your credit card benefits guide just yet — we’re going to dig in to purchase protection benefits and cover the following in this article:

• What purchase protection coverage is
• Some of the best credit cards for purchase protection
• How long your item is covered and how much you can expect to receive
• Which items are covered/excluded
• Tips for filing a purchase protection claim

Here’s everything you need to know about the benefits of purchase protection on your credit card.

How Does Purchase Protection Work?

Purchase protection is a coverage that protects qualifying items you’ve purchased with your credit card from theft, damage, or accidental loss. Other terms for this coverage include “purchase security” and “purchase assurance.”

To be eligible for coverage, the item must be purchased in part, in full, or with points earned on your credit card, depending on the card’s specific terms/conditions.

Coverage is usually in effect for a few months from the date of purchase, and this coverage is normally in excess of any other insurance you might have (including homeowner’s, rental, or automobile insurance).

Protection can include repairing, replacing, or reimbursing you for your loss, depending on how the credit card insurance company decides to settle your claim.

Best Credit Cards for Purchase Protection

If you’re purchasing an expensive item, you’ll certainly want to earn points or miles for the purchase — but purchase protection might be a high-priority consideration as well.

We’ve selected these 3 premium credit cards as the best in this category because they have high coverage limits and come with other shopping protections (such as extended warranty coverage) that partner well with purchase protection.

These cards also allow you to purchase the item in full with your card, pay for just a portion of your purchase, or even purchase with points earned on your eligible credit card.

Bottom Line: Regardless of the specific payment method you choose, in full, just a portion, or with points, you’ll still have premium purchase protection coverage when using one of these top cards.

The Platinum Card® from American Express

One of our top choices for the best credit card for purchase protection is the Amex Platinum card that comes with coverage of up to $10,000 per claim and $50,000 per account.

Amex Card

Benefits & Info

New Welcome Offer The Platinum Card® from American Express Apply Now (at Amex's secure site)

Earn 60,000 75,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 6 months of Card Membership. Earn 10x points on eligible purchases, in your first 6 months of Card Membership, on your new Card at U.S. Gas Stations and U.S. Supermarkets (on up to $15,000 in combined purchases). Earn 5X Membership Rewards points on flights booked directly with airlines or with American Express Travel (up to $500,000 on these purchases per calendar year) plus earn 5X Membership Rewards points on prepaid hotels booked with American Express Travel. Access 1,300+ airport lounges across 140 countries, including the amazing Centurion lounges. (This is our favorite lounge access card.) Up to $200 Uber Savings Annually. Up to $200 Airline Fee Credit. Up to $100 fee credit for Global Entry or TSA PreCheck. Up to $100 annual Saks Fifth Avenue credit. Good to Excellent Credit Recommended (670-850) Annual Fee: $550. Terms Apply. For rates and fees of the Amex Platinum Card, click here. Bonus Valuation*: $1,650 Must Reads: For more info on the Amex Platinum, see our thoughts on its benefits & perks, travel insurance coverage, and unbeatable airport lounge access. Take a look here for our full review. If you're a business owner, see our review of The Business Platinum Card from American Express.

This makes the card an excellent choice for large purchases you want to make sure are covered for purchase protection.

You’ll also be earning valuable Membership Rewards points on your purchases.

Chase Sapphire Preferred® Card

The Chase Sapphire Preferred card joins our top choices for purchase protection coverage since it also offers high limits of $500 per claim and $50,000 per account.

Credit Card

Benefits & Info

Chase Sapphire Preferred® Card Apply Now (at Chase's secure site)

Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. Plus, earn up to $50 in statement credits towards grocery store purchases within your first year of account opening. Bonus Valuation*: $1,600 Earn 2x points on dining at restaurants including eligible delivery services, takeout and dining out and travel & 1 point per dollar spent on all other purchases. Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel. Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21. Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required. Good to Excellent Credit Recommended (670-850) Annual Fee: $95 Must Reads: For more info on the Chase Sapphire Preferred, see our thoughts on its benefits, travel insurance coverage, and credit score requirements. Take a look at our full review to see why it's one of our favorite Chase credit cards.

Chase Ultimate Rewards points are one of the most valuable travel rewards currencies around, so earning plenty of them on an expensive purchase could be a good choice!

Chase Sapphire Reserve® Card

Another stellar credit card that offers purchase protection with a limit of $10,000 per claim and $50,000 per account is the Chase Sapphire Reserve card.

Credit Card

Key Benefits & Info

Chase Sapphire Reserve® Apply Now (at Chase's secure site)

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. Bonus Valuation*: $1,200 $300 Annual Travel Credit as reimbursement for travel purchases charged to your card each account anniversary year. Through 12/31/21, gas station & grocery store purchases will also count towards earning your Travel Credit 3X points on travel immediately after earning your $300 travel credit. 3X points on dining at restaurants including eligible delivery services, takeout and dining out & 1 point per $1 spent on all other purchases Get 50% more value when you redeem your points for travel through Chase Ultimate Rewards®. For example, 60,000 points are worth $900 toward travel Access to 1,300+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™ Select and up to $100 application fee credit for Global Entry or TSA Pre✓® Excellent Credit Recommended (740-850) Annual Fee: $550 Must Reads: For more on the Chase Sapphire Reserve, see our thoughts on its benefits, global airport lounge access, and travel insurance protection. Take a look here for our full review.

This card earns Ultimate Rewards at the rate of 3 points per $1 spent on travel and dining. All other purchases earn 1 point per $1, and you can easily earn more points using the Ultimate Rewards Shopping portal — as many as 20 points per $1!

The Chase Sapphire Reserve card comes with Priority Pass lounge access to more than 90 lounge and restaurant locations domestically, 1,300 lounge properties globally, a $300 travel credit each card anniversary year (including gas and grocery purchases through December 31, 2021), and a redemption bonus of 50% more value when redeeming points via the Chase travel portal.

Bottom Line: Premium credit cards tend to have higher limits for purchase protection, making these cards a wise choice when purchasing an expensive item.

Best Business Credit Cards for Purchase Protection

When running a business, selecting a credit card that has adequate purchase protection is important for securing those large business purchases.

Best Business Credit Card for Purchase Protection	Coverage Limits/Details
The Business Platinum Card® from American Express Apply Now (at Amex's secure site)	$10,000 per claim, $50,000 per account 90 days from purchase, pay in full or part and/or with Membership Rewards Points Terms.
Ink Business Unlimited® Credit Card Apply Now (at Chase's secure site)	$10,000 per claim, $50,000 per account Pay for your purchase in full or in part with your card, or with Ultimate Rewards Points earned on your card Coverage for 120 days from date of purchase

Hot Tip: The best business credit cards for purchase protection carry limits of $10,000 per claim and $50,000 per account. They also allow a purchase to be made partially with your eligible credit card or with associated points. 

Best $0 Annual Fee Credit Cards for Purchase Protection

You don’t have to carry a premium credit card and pay a high annual fee to have purchase protection coverage.

Here are some examples of cards that offer coverage and have a $0 annual fee.

Best $0 Annual Fee Credit Card for Purchase Protection	Coverage Limits/Details	Purchase Details
Blue Cash Everyday® Card from American Express Apply Now (at Amex's secure site)	$1,000 per claim, $50,000 per account	Pay for your purchase in full or in part with your card, or with Membership Rewards Points earned on your card Coverage for 120 days from date of purchase (90 days for New York). Terms Apply, click here for rates and fees.
Chase Freedom® Card	$500 per claim, $50,000 per account	Pay for your purchase in full or in part with your card, or with Ultimate Rewards Points earned on your card Coverage for 120 days from date of purchase

Best Credit Cards for Cell Phone Purchase Protection Coverage

If you have to purchase a new cell phone, it’s prudent to use a credit card that offers purchase protection, since you’ll receive 90 to 120 days of protection when using an eligible card.

But did you know you can receive additional ongoing coverage by charging your monthly wireless bill to an eligible credit card?!

Charging your monthly wireless bill to these credit cards provides ongoing monthly protection against theft/damage.

Best Credit Card for Cell Phone Protection	Coverage Details
Ink Business Preferred® Credit Card Apply Now (at Chase's secure site)	Pay monthly bill with eligible card Up to $600 per claim protection against theft/damage Covers cardholder and employees $100 deductible Maximum 3 claims in 12 month period
Wells Fargo Propel Card from American Express® Wells Fargo Cash Wise Visa® Credit Card	Pay monthly bill with eligible card Up to $600 in protection against theft/damage $25 deductible $1200 limit/year
U.S. Bank Platinum Card	Pay monthly bill with eligible card Up to $600 in protection against theft/damage $25 deductible $1200 limit/year

Some credit cards, such as the Ink Business Cash® Credit Card, earn 5% cash-back or 5 points per $1 spent on phone service purchases. You’ll need to determine which delivers more value for you over the long term: having purchase protection or earning rewards.

Which Purchases Are Covered?

To receive purchase protection coverage, you must meet the terms and conditions of the purchase requirement for your specific credit card. Requirements differ, however.

Some cards require that you pay for the entire purchase with your eligible card, while others cover purchases made partially with an eligible card or made with rewards points that were earned on the card.

Here is a sampling of the different requirements.

Check your specific credit card benefits guide before purchasing an item to determine the eligible purchase requirements.

Hot Tip: Even items you buy as gifts can be covered under purchase protection insurance if they are purchased with an eligible card. 

How Long Are My Purchases Covered?

The length of purchase protection coverage varies, but you can expect to receive at least 90 to 120 days of coverage from the date of purchase, depending on the credit card issuer, type of credit card, and where you live.

How Much Coverage Can I Expect to Receive?

Purchase protection coverage limits vary by credit card, from as little as $500 per claim to as much as $10,000. You’ll also have a lifetime or yearly limit on claims, commonly $50,000 per account.

Limits also differ by the card issuer (American Express/Chase) and by card network (Visa/MasterCard/American Express).

Keep in mind that purchase protection is secondary to any other insurance that covers the same loss.

Which Items Are Excluded?

Not every item you purchase is covered under purchase protection coverage.

Here are examples of items that may be excluded from coverage:

• Motorized vehicles, trailers
• Computer software
• Antiques/collectibles
• Items under the control of a common carrier (such as the post office, an airplane, or delivery service)
• Commercial items being resold
• Animals, plants, perishables
• Jewelry/watches in checked baggage
• Cash alternatives (traveler’s checks, gift cards, debit cards)
• Firearms/ammunition
• Rented items

Hot Tip: Access the benefits guide of your specific credit card for the terms of its purchase protection coverage and which items are excluded.

Tips for Filing a Purchase Protection Claim

Here are some important items to be aware of if you need to submit a purchase protection claim.

• Original Receipts — When purchasing an item with your eligible credit card, be sure to keep the receipts; you will need them if you have to file a purchase protection claim.
• Insurance Documents — You will need to submit a claim to your insurance company if the eligible item is of a value higher than your deductible. Proof of the claim denial or payment from your insurance company is required when submitting a purchase protection claim. If the item damaged, lost, or stolen is under the value of your insurance deductible, a copy of your declaration page showing the deductible may be acceptable for filing the purchase protection claim.
• Police Report — In the case of theft, you will need to submit a copy of a police report.
• Time Limit for Filing a Claim — Credit card purchase protection claims must be reported within a specific time period, usually no more than 30 to 90 days after the incident. You will then typically have additional time to file the required paperwork.
• Keep Damaged Property — If the item is damaged, hold on to it until your claim is settled as the credit card insurance company may ask for the item.

Bottom Line: Keep your receipts for purchased items, check other credit card insurance policies for coverage first, get a police report if theft is involved, report any incident in a timely fashion, and hold onto any damaged item until your claim is settled.

How to Find the Terms/Conditions of Your Purchase Protection Coverage

To find out if you have purchase protection, you’ll want to check the benefits guide that comes with your credit card. The terms and conditions for using the coverage will also be listed.

You can find the benefits guide for a current credit card by:

• Accessing the benefits guide online once you’re signed in to your credit card account
• If not available online, you may be able to request a benefits guide via your credit card account website
• Call the number on the back of your credit card and ask for one to be sent to you

Related Shopping Coverages

In addition to purchase protection, credit cards can offer other shopping coverages you might find beneficial and that pair nicely with purchase protection.

Here is a sampling of other protections you’ll find on many credit cards:

• Extended Warranty — coverage extends the manufacturer’s warranty by a year or 2, depending on the credit card
• Return Protection — if the merchant does not take back an item, return protection may reimburse you
• Price Protection — if the price of an item goes down after you purchase it, coverage reimburses you the difference

Check your benefits guide for these shopping protections and the associated terms/conditions.

Hot Tip: Purchase protection and price protection are not the same. You can read up on price protection here. 

Everything Else You Need to Know

Purchase protection is secondary coverage that comes into play once you’ve exhausted other insurance you might have to cover the loss.

Since homeowner’s, auto, rental, and other insurances usually have a deductible that applies when such a loss occurs, purchase protection coverage can be a real benefit you can use to fill in that coverage gap.

You can expect purchase protection to replace, repair, or reimburse you for your loss. The decision about which method will be used will be made by the insurance benefits administrator for the credit card company.

Purchase protection losses caused by natural disasters have lower coverage limits, typically $500 per claim.

Final Thoughts

For short-term coverage on a qualifying item, you can’t beat the extra no-cost credit card benefit of purchase protection.

Earning points/miles for a purchase made on your credit card is great. But if you plan to buy a big-ticket item, check the purchase protection coverage on your card for potential coverage if the item is lost, damaged, or stolen within the first few months of ownership.

The information regarding the Chase Freedom®, Wells Fargo Propel Card from American Express®, Wells Fargo Cash Wise Visa® Credit Card, and U.S. Bank Platinum Card was independently collected by Upgraded Points and not provided nor reviewed by the issuer. 

For rates and fees of The Platinum Card® from American Express, click here.