The Ultimate Guide to Credit Card Purchase Protection

What is Purchase Protection? 

The Purchase Protection benefit of your Credit Card protects your purchases made with the Card against any theft or accidental damage for a limited period from the date of purchase.

Coverage and the duration of protection can vary depending on the bank guidelines and the type of Card. 

Purchase Protection is different from the extended warranty. Extended warranty extends the duration of the warranty against manufacturing defects only. It does not cover user caused damages or theft, unlike Purchase Protection. 

What does Purchase Protection cover? 

Most Purchase Protection policies typically cover theft to eligible items bought using Amex Card. That means, if you accidentally broke the screen of the new smartphone you bought using your Credit Card recently, your Credit Card company might cover the replacement or repair expenses. There will be a deadline and claim limit, however, as stipulated by your Card provider.

One can file for claims for thefts of eligible items covered under Protection Policy with their Credit Card company. For example, if you bought a laptop using your Credit Card with Purchase Protection feature and it gets stolen within a few days from purchase, you could file a claim for a refund of the money spent. The Credit Card company will need you to submit the original sales receipt, and the police report filed against the theft.

Most Purchase Protection plans broadly cover the following categories of purchases:

• Personal care items
• Fashion and accessories
•  Electronic gadgets
• Home improvement 

However, not all items purchased with the Card are eligible for the Purchase Protection. The purchase protection policy does not include the following items:

• Software
• Perishables and consumables like food, batteries, bulbs, and perfumes
• Negotiable things like gift cards
• Antiques and artworks
• Tickets of any kind
• Rented or leased items
• Cars, bikes, boats, and other motorised devices 
• Lost items don't get covered under the Purchase Protection policy. So, if you don’t have a plausible explanation for your laptop disappearance, chances are you can’t file a claim under the Purchase Protection policy.

Know your Credit Card’s Purchase Protection policy

The terms and conditions of a Protection Policy vary between different card providers and types. Different Purchase Protection policies can offer separate coverage in terms of the eligible items, claim limits, and the duration of protection. It would help if you asked the following questions to be able to understand the terms and conditions of the Purchase Protection offered by your card provider.

• Who is covered?
  It can be just the primary cardholder or also include the additional cardholder.

• What is covered?
  Understand what type of items are covered. Find out if it covers both theft and damage due to natural calamities? Amex Platinum Card Purchase Protection policy, for example, covers damage to your purchases due to natural calamities also. 

• Exclusions
  Enquire in detail about the items that are not covered under the policy. Card companies typically don’t entertain claims about lost items and the items which got stolen or damaged when not directly under cardholder’s possession.

• Limit on claim amount and number of claims 
  Different cards have a different monetary limit of coverage per claim and also per account in a year. 

• Duration of coverage
  Most protection policies cover the loss only for a limited time. You should know the time within which you can file your claim for a damaged or stolen possession. 

How to claim a Purchase Protection? 

In case of an unfortunate situation, wherein your belongings are damaged or stolen , you should start the claim process as early as possible. You can start by calling up the customer service of your card company and apprising them of the situation at hand. They can guide you about the process to follow. In most cases, one needs to fill out a form, and the supporting documents have to be submitted either online or in person. 

Before filing your claim, however, you need to ascertain that a primary insurance policy covers the damaged or stolen item. A stolen laptop, for example, may also be covered under household insurance. In such a case, you first need to file a claim with the primary insurance provider. If, however, it isn’t fully covered by the primary insurance company, then you can file a claim under your card’s Purchase Protection policy.

To process the claim, you will have to submit the damaged item. Different card providers have their own set of rules and supporting documents requirements. Here is a general list of documents you will need to submit for your claim under Purchase Protection policy:

• Claim form
• Original receipt of the transaction
• Your credit card statement showing the record of the transaction
• Police report for the stolen item
• A copy of the claim settlement with your primary insurance company (if applicable)
• Any other document to substantiate your case

American Express Platinum Card and American Express Platinum Reserve Credit Card have a Purchase Protection policy as a part of the Card features and don’t require any additional enrolling. They cover your purchases from theft and also the damage due to natural calamities such as flood, fire, earthquake, storm, and cyclone, etc. for 60 days from the date of purchase. Amex reimburses your purchase amount, but the refund money gets limited per occurrence and Card Member account in a year. 

Cards with Purchase Protection are a blessing you may be oblivious to, until now. While air miles, points, and lounge access are significant benefits to look in a card, Purchase Protection is a noteworthy benefit to have, especially when planning large purchases like a television or a laptop. If things don’t go the way you had hoped for, the right credit card with a Purchase Protection benefit can save you a lot of money.