Purchase Protection

What Is Purchase Protection?

Purchase protection is a benefit offered by many credit cards that covers eligible purchases against theft or accidental damage for a set period after the date of purchase. If a covered item is stolen or damaged, the card issuer reimburses you up to the coverage limit.

This is a form of insurance built into the card, provided at no additional cost to you, funded by the card issuer or an insurance underwriter they work with.

What It Typically Covers

Most purchase protection programs cover:

• Accidental damage: A new smartphone dropped and cracked, a laptop spilled on, a camera dropped
• Theft: A covered item stolen from your car, hotel room, or person

The item must have been purchased with the credit card that provides the benefit. Only personal property is typically covered; commercial or business items may be excluded.

Coverage Amounts and Timeframes

Coverage limits vary significantly by card:

| Card Tier | Typical Coverage | Typical Period | |-----------|-----------------|----------------| | Premium travel cards (Sapphire Reserve) | Up to $10,000 per claim, $50,000 per year | 120 days from purchase | | Mid-tier cards (Sapphire Preferred) | Up to $500 per claim, $50,000 per year | 120 days from purchase | | Basic no-fee cards | Up to $500 per claim | 90 days from purchase |

The Chase Sapphire Reserve offers among the most comprehensive purchase protection: $10,000 per claim at 120 days.

Common Exclusions

Purchase protection typically does not cover:

• Normal wear and tear
• Product defects (those fall under extended warranty)
• Items lost (not stolen; must be confirmed theft)
• Motorized vehicles
• Animals and living things
• Items purchased for resale
• Claims where another insurance policy already covers the loss

How to File a Claim

1. Contact the number on your card or the benefits administrator listed in your card guide within the required timeframe (usually 90 days of the incident)
2. Provide a copy of the original receipt showing the card was used
3. Provide a police report if theft is involved
4. Provide photos of the damage if applicable
5. Describe the incident in writing

The claim is typically reviewed within 2 to 4 weeks. Approved claims result in a statement credit or reimbursement for repair or replacement costs.

Purchase Protection vs. Extended Warranty

These are different benefits. Purchase protection covers theft and accidental damage. Extended warranty coverage (a separate benefit on many cards) extends the manufacturer's warranty period, typically by one year, and covers mechanical or electrical failures. Both can apply to the same purchase but for different reasons.