Best Credit Cards for Purchase Protection

The Chase Sapphire Preferred benefits include high rewards on travel, plus thousands of dollars in travel insurance and coverage for damaged or stolen purchases. Chase Sapphire Preferred also offers one of the best initial rewards bonuses on the market. That's a big reason why its among WalletHub's choices for the year's best rewards cards as well as the best credit card deals. The average person would earn more Preferred over the first two years of use than any other Chase credit card, according to WalletHub's latest Credit Card Rewards Report. And Chase Sapphire Preferred's secondary benefits are impressive as well.

Here are the Chase Sapphire Preferred's benefits:

• Initial Bonus: Chase Sapphire Preferred offers one of the best bonuses on the market.
• Travel Insurance: Chase Sapphire Preferred has the best overall travel insurance among credit cards, according to WalletHub's editors. Pay for travel with Chase Sapphire Preferred, and you'll get coverage for delayed, cancelled, or interrupted trips as well as for lost luggage.
• Rental Car Insurance: Paying for your vehicle rental with your Chase Sapphire Preferred card automatically gives you coverage for damage or theft. Chase's policy ranks second among major issuers.
• Extended Warranty: If you buy something that has a manufacturer's warranty, Chase may add a year to your coverage. Chase Sapphire Preferred and Chase Sapphire Reserve® are tied for 17th in this category.
• Purchase Protection: You may be eligible for at least a partial refund if certain items purchased with a Chase Sapphire card are damaged or stolen. WalletHub ranks Chase Sapphire Preferred 6th in this category. The Chase Sapphire Reserve card takes 1st place.
• International Travel Perks: WalletHub's editors analyzed major issuers' perks and policies for international travelers, including travel rewards, foreign transaction fees, emergency assistance and more. Chase Sapphire Preferred and Chase Sapphire Reserve tied for 7th best.

Another Chase Sapphire Preferred benefit is worldwide acceptance. Since Chase Sapphire Preferred is a Visa, you can use it pretty much everywhere in the world credit cards are accepted. Using a Visa or a Mastercard is the best way to convert currency when traveling internationally, too, thanks to low exchange rates that could save you as much as 9%. Plus, Chase is one of the few major credit card companies that will send you a free replacement if you lose your card while out of the country.

In short, Chase Sapphire Preferred is an excellent rewards credit card for people with excellent credit. You can learn more about the offer from WalletHub's complete Chase Sapphire Preferred Card review.

You can use Chase Sapphire purchase protection can be used to repair or replace items paid for with a Chase Sapphire Preferred® Card or Chase Sapphire Reserve® credit card. But not all purchases are covered. And you have to submit a claim within 120 days of buying something to benefit.  

Generally, Chase Sapphire's purchase protection policy applies to lost or stolen items as well as items that were damaged by fire/smoke, vandalism, or accidental water/steam leaks. But there are some notable exclusions, including perishable items (e.g. food, plants and pets), collectibles, motor vehicles and computer software. You can't make a claim on things you bought used, either.

You can check out WalletHub's 2020 Purchase Protection Report to learn more about what Chase Sapphire covers and how much value you can recoup through the program. Now, it's time to discuss how to actually take advantage of this complimentary perk.  

Here's how to file a Chase Sapphire purchase protection claim:

1. File a police report, if necessary. This applies only to stolen items, but it is very important. You are required to file a police report within 48 hours of the theft for your claim to be valid.
2. Contact the Chase Benefit Administrator. You must let Chase know that you intend to file a claim within 90 days of an item being lost, damaged, or stolen. You can do this by calling (888) 320-9961 and giving the Benefit Administrator basic information about the situation.
3. Wait to receive a claim form. The Benefit Administrator will mail you a claim form following your phone call. You must fill out this form with information about what happened and return it within 120 days of the date of the incident. You'll also need to send other relevant materials like receipts, police reports, and any settlements you already received.
4. Wait for the Benefit Administrator's response. If Chase deems your claim to be valid, they will mail you a check for the amount needed to repair or replace your item, up to applicable coverage limits.

Of the two available Chase Sapphire cards, Chase Sapphire Reserve offers better purchase protection. It surpasses Chase Sapphire Preferred in terms of both the amount of coverage you're eligible to receive and the number of claims you can make. So, while both Sapphire cards are among the best credit cards for purchase protection, according to WalletHub's editors, only Chase Sapphire Reserve is tied for 1^st overall. Chase Sapphire Preferred is tied for 6th.

You should also note that purchase protection is not meant to replace regular insurance. If your house burns down, for example, Chase Sapphire purchase protection may cover some of the items that were inside but not the house itself. So, you'd still need homeowners insurance in that instance. That's important because if an item is already covered by another policy, you need to make a claim there first, plus tell Chase about any money you're awarded.

Yes, Mastercard does offer purchase protection. Mastercard purchase protection reimburses items purchased with an eligible World Mastercard or World Elite Mastercard credit card that get damaged or stolen within 90 - 120 days of purchase, depending on the card. The typical coverage amount provided by Mastercard purchase protection is $1,000 per purchase and $50,000 per year, though it can vary by card.

However, you should note that even though they are eligible for it, not all World or World Elite Mastercard credit cards have purchase protection (or “purchase assurance,” as Mastercard calls it). Each credit card issuer can choose whether or not to include the coverage on its cards. The best way to find out if your existing Mastercard has purchase protection is to read the benefits guide you were sent after approval, which will also include instructions on how to file a claim. If you're interested in a new card and want to know if it has purchase protection, you should look at the card's description on the issuer's website or call customer service.

It's also important to point out that some items will not be eligible for Mastercard purchase protection coverage. For example, things like animals and plants, motorized vehicles, computer software, perishables and collectible items are typically not eligible. In addition, when you file a claim, you will need to provide supplemental documents for proof, such as store receipts, credit card statements, police reports and damage estimates (if applicable).

Visa purchase protection is a credit card benefit that covers stolen or damaged items bought with an eligible Visa credit card for 90 days following the purchase date. Purchase protection on a Visa can repair, replace, or reimburse eligible products, providing up to $10,000 in coverage per claim and $50,000 per year.

It's possible to get purchase protection, also called purchase security, on Visa consumer or business cards, but only when the issuer has included the benefit with the card. No matter which Visa card you have, you can call the number on the back of your card to speak with a representative about your card benefits. You should ask about the coverage timeframe, product eligibility, and other details, given that not all Visa cards that offer purchase protection will follow Visa's standard policy.

How to Use Visa Purchase Protection

1. File a police report, if necessary. If the item was stolen, you're required to file a police report within 48 hours of becoming aware of the theft. You don't need to file a police report for damaged items that aren't stolen.
2. File a claim with any other insurance provider. If your other forms of insurance might cover the purchase, you must file claims with them first.
3. Contact the Benefit Administrator within 60 days of the theft or damage. You can reach the Benefit Administrator at 1-888-221-3289.
4. Submit required claim forms within 90 days. Submit all claim forms required by the Benefit Administrator, including record of any settlements with other insurance companies, within 90 days of the theft or damage.
5. Collect compensation. If your claim is valid, Visa purchase protection will compensate you, up to your policy maximum.

As you might expect, there are a lot of eligibility restrictions that accompany Visa purchase protection. Items like motorized vehicles and computer software, for example, won't be covered. Refer to the benefits guide that came with your Visa credit card for further information on these exceptions.