Purchase Protection and Extended Warranty on Credit Cards in Canada
Many Canadian credit cards, including no-fee cards, quietly insure what you buy against theft and damage and add time to the manufacturer's warranty. Here's how it works and how to claim.
By Andrew Updated How we review cards
Purchase protection (also called purchase security) covers eligible new items you buy with your card if they’re stolen or accidentally damaged soon after purchase, typically within 90 days. Extended warranty insurance adds time to the manufacturer’s original warranty, typically up to one extra year. Both come built into many Canadian credit cards, including plenty with no annual fee.
How purchase protection works
If an eligible item you bought with your card is stolen or damaged within the coverage window, the insurer will repair it, replace it or refund you, up to the limits in the certificate. Typical features:
- A 90-day window. Simplii, TD, BMO and Amex all describe coverage for 90 days from the purchase date on several of their cards.
- A per-claim limit. American Express, for example, lists up to $1,000 per occurrence on the Amex Green Card and the Cobalt.
- A lifetime limit. BMO’s certificates on cards like the BMO CashBack Mastercard list a $60,000 lifetime maximum.
- Coverage is usually excess insurance. If you have home or tenant insurance, you may need to claim there first, with the card covering what’s left.
How extended warranty works
Extended warranty insurance usually doubles the manufacturer’s original warranty, up to one additional year. So:
- A product with a 1-year manufacturer’s warranty gets 1 more year, for 2 years total.
- A product with a 6-month warranty gets 6 more months.
- A product with a 3-year warranty usually gets just 1 more year, since the extension is capped.
Certificates usually require the original warranty to be valid in Canada, and some cap how long the original warranty can be. Simplii, CIBC, BMO and Scotiabank all describe their extended protection as doubling the original warranty up to one additional year.
No-fee cards that include both
| Card | Annual fee | Coverage listed by the issuer |
|---|---|---|
| Simplii Financial Cash Back Visa | $0 | Purchase Security (90 days) and Extended Protection (doubles warranty, up to 1 extra year) |
| BMO CashBack Mastercard | $0 | Purchase security (90 days) and extended warranty (doubles warranty, up to 1 extra year) |
| CIBC Costco Mastercard | $0 (Costco membership required) | Purchase Security and Extended Warranty (up to 1 extra year), plus Mobile Device Insurance up to $1,000 |
| American Express Green Card | $0 | Purchase Protection (90 days, up to $1,000 per occurrence) and Buyer’s Assurance |
| CIBC Aventura Visa | $0 | Purchase Security (90 days) and Extended Protection |
| TD Rewards Visa | $0 | Purchase Security and Extended Warranty (90 days on eligible new items), plus Mobile Device Insurance up to $1,000 |
Not every no-fee card includes this. Scotiabank’s Scene+ Visa, for example, lists no built-in insurance. Always check the card page.
What’s usually excluded
Each certificate has its own list, but common exclusions include:
- Items lost or simply misplaced (as opposed to stolen)
- Cash, gift cards, tickets and similar
- Used, refurbished or second-hand items (often excluded, though some certificates cover refurbished items with a warranty)
- Motor vehicles and their parts
- Damage from normal wear and tear, or from misuse
- Items left unattended in a public place
Phones are often excluded from extended warranty when the card has separate mobile device insurance. See our guide to mobile device insurance.
How to make a claim
- Pay for the full item with the card. Some certificates allow points or a split payment, but check the wording first.
- Keep the paperwork: itemized receipt, card statement, original warranty, and a police report for theft.
- Call the insurer quickly. Certificates set a deadline to report a claim, often within a short window after the incident.
- Don’t throw out the damaged item until the insurer says so. They may ask to see it.
FAQ
Do I need to register my purchases? Generally no. Coverage applies automatically when you pay with an eligible card.
Is purchase protection the same as price protection? No. Price protection, which a few cards offer, refunds the difference if an item’s price drops. Purchase protection covers theft and damage.
Do authorized users get the coverage too? Usually, when they pay with their own card on your account. Check the certificate.
What to do next
Filter no-fee cards on the no annual fee hub, then open the card’s insurance certificate (linked from the issuer page) before you rely on it for a big purchase.
This is not financial advice. Coverage terms vary by certificate.
