The Best Credit Cards for Extended Warranties
As you swipe your credit card to pay for new purchases, there’s a good chance you have access to extended warranty coverage. This is part of the free benefits package that your credit card company gives to cardholders as an added advantage for being a customer. So the next time that a cashier asks you if you would like to buy the extended warranty on a new item, you might already have this benefit built into your credit card.
What is an Extended Warranty Policy?
Having extended warranty policy on your credit card means you’ll receive an additional year of coverage, or sometimes more, on eligible purchases. Even if the manufacturer’s warranty on an item you purchase expires, it may still be covered under your credit card’s extended warranty policy.
One thing to be aware of is that you won’t receive extra coverage beyond what the manufacturer offers, since the extended warranty policy only mimics the original warranty. For instance, if an item’s original warranty only covers defects, then the credit card’s extended warranty will cover the same thing. The added bonus is that you will receive up to one year of additional coverage based on what the original manufacturer's policy covers.
Is a Credit Card Extended Warranty a Good Deal?
Traditional extended warranties, like those offered by retailers, are usually very expensive. In fact, according to a Consumer Reports study, the median price for warranty coverage on small and large appliances ranges from $37-123, depending on the size. This means that the extended warranty coverage that comes as a free perk with participating credit cards could save you hundreds of dollars for each big ticket item you purchase every year.
It’s good to note that extended warranties do not cover all purchases made with your credit card. Any items without an original manufacturer’s warranty will not be eligible for extended warranty coverage through your credit card. They often exclude vehicles, boats, and computers. However, if you have a malfunctioning dishwasher or broken television set, you’ll likely be able to receive reimbursement.
The Best Credit Cards for Extended Warranties
Not all credit cards are created equal when it comes to extended warranty policies. American Express includes extended warranties with all their credit cards and they offer the most coverage.
Below are the best credit cards for extended warranties.
Blue Cash Preferred® Card from American Express
As a Blue Cash Preferred® cardmember from American Express, a Credit Cards House advertiser, your extended warranty coverage is already built-in. The warranty coverage with American Express can be extended up to five years, based on the original policy. Your coverage per claim is limited to $10,000 or $50,000 per year per cardholder. For complete warranty coverage with the Blue Cash Preferred® card from American Express, check out the terms on their website.
Chase Sapphire Preferred® Credit Card
The Chase Sapphire Preferred® card is another credit card with an excellent benefits package for cardmembers. And this includes an extended warranty policy that gives an additional year of coverage on eligible purchases.
You will also receive access to other purchase protection benefits such as damage against loss or theft for 120 days and return protection if a store won’t take back your item within 90 days of buying it. For more information about the Chase Sapphire Preferred® card’s extended warranty coverage, check out their website.
How to File an Extended Warranty Claim
After charging the item to your credit card, save the receipt along with the product’s original manufacturer’s warranty. If the product breaks after the original warranty expires you’ll need this information to take advantage of your credit card’s extended warranty policy and file a claim.
Here’s the paperwork you’ll want to keep handy:
- Original store receipt when purchasing the item
- Account statement showing the credit card purchase
- A copy of the manufacturer's original warranty
- Any other warranty or service policy coverage
Each credit card provider has a different method for processing your extended warranty claim, but each have a phone number you can call to initiate the process. Some credit card companies require you to start the claim within 30-60 days of loss, so be sure to check with customer service to verify the terms.
You’ll be assigned a payment network examiner who will then review your claim and either approve or deny it. The examiner may request more documents, such as a repair quote, which can usually be uploaded digitally. Larger item claims take longer to process while smaller items are processed quickly.
Once your extended warranty claim is approved and processed, you will likely receive reimbursement within 10-60 days. American Express offers similar reimbursement methods via a statement credit, while Visa and Mastercard typically send you a reimbursement check in the mail.
Prep Your Purchases for Extended Warranty Coverage
Whether you’re purchasing large or small items, it’s a good idea to keep the receipts and record the original manufacturer’s warranty in a safe place. Many credit card companies have a portal where you can upload images of your receipts and warranty documents to your online account.
Organizing your purchase and warranty information like this makes it easy in the event that an item breaks and you need to process an extended warranty claim after the manufacturer's coverage has expired.
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Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.