Insurance: How Credit Card Mobile Device Insurance Works

In Quebec, the Office de la protection du consommateur reminds us that mobile devices (cell phones, tablets, and laptops) are protected by law at three levels:

• Warranty;
• Reasonable warranty period (this varies according to the price paid, but should be valid for a period of two years);
• Warranty against hidden defects.

These protections relate to device functionality.

The retailer or manufacturer often offers the option to buy an extended warranty when you buy a mobile device.

If your electronic device becomes defective after the initial warranty has expired, this extended warranty covers repair, replacement, or reimbursement of the device for a longer period.

However, before paying for it, you should know that you are already covered for at least one additional year thanks to the legal warranty (reasonable duration) from the Office de la Protection du Consommateur.

Before accepting this extended warranty, ask the seller these questions:

• Is there a deductible to pay?
• Does the warranty include parts AND labour?
• If it cannot be repaired, will it be replaced?
• Does the extended warranty come into effect at the same time as the basic warranty (payment of the extended warranty unnecessarily) or when the basic warranty expires?

Your home insurance policy (for a tenant or homeowner) covers your personal property. Check whether your electronic/computer equipment is included and what amount or percentage is covered.

Often, when we go out and have an accident with our device, it can be protected against theft, breakage or loss by home insurance.

The cost of insuring them is estimated at between $2.50 and $4 per $100, depending on the deductible. So, we estimate that it costs between $25 and $40 for a $1,000 laptop. This amount is added to the cost of the home insurance policy.

The main disadvantage of this insurance is that after a claim that counts as a “loss event”, the premium may increase the following year.

Did you know it’s possible to save on your home insurance? Compare the different options with ClicAssure to get the best price!

Some credit cards in Canada offer mobile device insurance. Some credit cards even come with no annual fee!

One of the advantages of these credit cards is that they double or even triple the manufacturer’s warranty:

• The purchase of the smartphone, tablet, or computer was charged in full, or is paid through recurring pre-authorized payments with the provider, on this credit card.
• The credit card is still active at the time of the claim.

In addition, most purchases are protected against theft and property damage for 90 to 180 days.

At last, there’s inexpensive coverage for property damage, like when you forget to take your cell phone out of your pocket before getting into the pool. It generally covers up to a maximum of $1,000.

A few rare credit cards offer up to $1,500, such as:

• RBC Avion Visa Infinite Card
• RBC Avion Visa Infinite Privilege Card
• TD^® Aeroplan^® Visa Infinite Privilege* Credit Card

Here is a selection of credit cards in Canada, with or without annual fees, offering Mobile Device Insurance that can be a lifesaver:

• American Express Cobalt^® Card
• NBC mycredit Mastercard
• CIBC Aventura^® Visa Infinite* Card
• Tangerine Money-Back World Mastercard

All Desjardins credit cards offer this coverage.

Note: carefully check the exclusions in your credit card’s insurance contract. For example, for the National Bank World Elite Mastercard, mobile devices are excluded from purchase protection (180 days), but the extended warranty that triples the coverage period still applies to mobile devices.

The vast majority of us own expensive mobile electronic devices like a cell phone, tablet, or laptop, and we want to protect them against loss, everyday accidents, theft, and damage.

For the first year, legal, manufacturer and credit card warranties are sufficient. But for the rest, credit card mobile device insurance, like that on the National Bank Mastercard, is very practical because it’s so easy to claim. The NBC mycredit Mastercard or the Tangerine Money-Back World Mastercard can be appealing options, especially since they have no annual fees!