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What is extended warranty?

Extended warranty can protect your purchases after the manufacturer's warranty has expired.
Find out about credit card extended warranty as well as what exclusions might apply.
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Some credit card issuers, like Mastercard, offer extended warranties to their customers. This feature extends the time that customers can make a claim on eligible purchases.

The credit card warranty will take effect when the manufacturer’s warranty has expired. It will typically replicate the terms and length of the original coverage for up to five years. Damage due to lack of maintenance, natural disaster, or normal wear and tear will not typically be covered. Items that do not come with a manufacturer’s warranty will also not be eligible.

If your claim is covered by your credit card extended warranty, the issuer can decide to either replace or repair the item. They can also reimburse you the cost of the purchase.

Understanding your credit card extended warranty

You’ll want to compare the length of the coverage period, which can be anywhere between one to five years. You should also check what deductibles you are liable to pay and if there are any limits on the amount you can claim per year.

If you do need to make a claim, you’ll want to be sure that the process is quick and simple. Before you apply for a credit card, ask what steps are involved when making an extended warranty claim. Also inquire how fast the processing period is, as the difference between issuers can range from a few days to a few months.

Are there any exclusions?

Not all purchases will be covered by your credit card issuer’s extended warranty. Typical exclusions include second-hand items, software, and purchases that are prone to breakdown, like vehicles. Any purchases intended for resale or professional/commercial use are also unlikely to be covered.

Issuers can reject qualified items if the loss is due to normal wear and tear, lack of maintenance, or product recall. Issuers may also exclude losses resulting from natural disaster, war, or hazardous substances from the policy. You may be unable to claim for certain charges, including shipping, services and diagnostic costs.

Each credit card issuer will have different terms and conditions, so always read the fine print before assuming your purchase is covered. Your extended warranty will become void if you cancel the credit cardused to make the purchase.

How do I make a claim on my credit card extended warranty?

Keep records of the purchase receipt, manufacturer’s warranty, and credit card statement for all eligible purchases. Also retain proof of any additional coverage that you may have purchased. You’ll need to submit this documentation when making a claim, along with an itemized estimation of repair from an approved service provider.

You may need to register your items with the card issuer. This can make it easier to make claims, as you won’t have to search for documents. It’s recommended that you register your items as soon as you purchase them.

Make sure you understand the terms of the manufacturer’s warranty, so you know when your credit card extended warranty starts. You should also check if there are any time limits for filing claims. You may no longer qualify for coverage if you wait too long after an eligible item becomes damaged.

Do I still need to buy extended warranties from retailers?

Retailers offer extended warranties on certain items for an additional cost. Don’t dismiss this just because your credit card issuer offers free extended warranty.

Always compare the terms and exclusions of the extended warranties from the retailer and your card issuer. It can sometimes be a good idea to take out additional coverage — especially on more expensive purchases. For example, a retailer may offer you greater protection or a longer coverage period than your credit card does. If this is the case, then the extra cost can be worth it for your peace of mind.

Ready to learn more?
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