If your cell phone is stolen or gets damaged, you would typically call your provider to file a claim. But you may have insurance through your credit card. Credit card phone insurance is becoming more common. Here is a rundown of how it works.
Overview
Here is how credit card cellphone coverage typically works:
- You must pay your cell phone bill with an eligible card.
- Accidental damage that causes your phone to be less functional and theft will be covered.
- Cosmetic damage, a lost phone, battery failure, and phone accessories typically won’t be covered.
- You will often have a deductible of anywhere from $25 to $100 before coverage takes effect.
- Coverage through your credit card is secondary to any insurance you may have through your provider.
The advantage for you is that you won’t necessarily have to pay if your phone gets banged up or damage.
Cards That Offer Coverage
Here are a few cards that offer cell phone insurance.
Coverage Limit per claim/per 12-month period = $1000/$1500
Deductible = $50
Other Features = Earn points towards hotels and travel.
Coverage Limit per claim/per 12-month period = $600/$1200
Deductible = $25
Other Features = 0% APR on balance transfers and purchases for 20 billing cycles.
Wells Fargo Cash Back College Card
Coverage Limit per claim/per 12-month period = $600/$1200
Deductible = $25
Other Features = Earn 3% cash back on up to $2500 of qualifying purchases.
Conclusion
Credit card phone insurance is becoming more popular and is a nice perk to have. I wouldn’t recommend opening a credit card solely for phone insurance, but if your card happens to have it, then it may be something to take advantage of should you need it.
Remember that these coverages do have stipulations and deductibles. Also note that insurance through your credit card is supplemental and comes second to insurance through your phone provider.
Read Also:
How Many Credit Cards Should You Have?
5 Tips On How To Avoid Growing Your Credit Card Debt
How to Lower Your Credit Card Interest Rate
5 Benefits of Credit Card Consolidation
P.s. If you’re looking for a travel rewards cards, consider reading Turtle Investor’s article on the best travel rewards cards. Its got a good discussion on which cards to get and which to avoid.
Based in the Pittsburgh, PA area, Brian holds full-time employment as a Warehouse Manager for an electronics firm. Brian enjoys wealth building, investing, gardening and the great outdoors. Brian holds a B.A. in Environmental Studies from the University of Pittsburgh and an MBA from Robert Morris University.
