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Credit card purchase protection

How to safeguard your credit card finances with complimentary purchase protection insurance.

Purchase protection is a common complimentary credit card perk, especially when it comes to black, platinum and gold cards. Sometimes, you can also add this feature to standard credit cards for a fee. Inclusions will vary from card to card, but purchase protection usually offers insurance for up to three months when products bought with your card are lost, stolen or accidentally damaged.

Purchase protection provides you with extra value and greater peace of mind when paying with plastic. Unfortunately, many shoppers haven’t learned to tap into the full benefit of credit card purchase protection. This page explains what purchase protection is, how it works and how you can make claims under this insurance feature.

What is purchase protection and how does it work?

Purchase protection is a type of insurance that provides coverage on new items you buy using your credit card. While the terms and conditions vary between cards, purchase protection usually includes the following factors:

  • Eligible purchases. Not all items are eligible for purchase protection. Perishables or consumables are often excluded from cover. Motor vehicles and vehicle parts could also be excluded. Most other retail purchases will generally be covered, but you should carefully read the specific terms and conditions of your coverage in your credit card product disclosure statement to find out exactly what applies.
  • Insurance cover. Purchase protection typically protects new products you buy with your credit card against theft, loss or accidental damage. Some policies only protect items that were purchased in Australia.
  • Insurance term. Purchase protection usually covers items for up to 90 days or 3 months from the purchase date, but can extend up to 6 months with some insurers.
  • Claim limits. This also varies among insurers and cards, but it is typically limited per claim (eg, $10,000 per claim) and per year (eg, up to $50,000 per account per year).

How do I make a claim for credit card purchase protection insurance?

The claims process differs depending on your credit card provider and the underwriting insurance company, but generally involves the following steps:

  • Contact the insurance company. Depending on your insurer and policy, you may have to file your claim within a certain time frame. For example, you may need to make a claim within 30 days of your item being stolen, lost or damaged.
  • Provide details of the claim. To make your claim, you have to show that the item was purchased using your credit card within the eligible period of coverage.
  • Submit any supporting documentation. Apart from original receipts, you may also need to provide other relevant documents such as police or incident reports.
  • Wait for a response. Your claim will usually take up to 14 business days to be assessed, after which you will be notified of the result and reimbursed if successful.

Comparison of credit cards with purchase protection

Rates last updated December 13th, 2017
Name Product Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee Product Description
NAB Premium Card - Exclusive Offer
19.74% p.a.
0% p.a. for 25 months
$90 p.a.
Exclusive to finder.com.au, enjoy a no BT fee, 0% balance transfer offer for 25 months and seven complimentary insurance covers.
St.George Vertigo Platinum - Online Offer
12.74% p.a.
0% p.a. for 24 months
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Platinum card benefits plus 0% p.a. for 24 months on balance transfers (with no BT fee) and $0 annual fee in the first year. Ends 13 December 2017.
American Express Essential Credit Card
14.99% p.a.
0% p.a. for 12 months with 3% balance transfer fee
$0 p.a.
Get Smartphone Screen Insurance of up to $500 when you pay for your phone or contract with this card. Plus, a $0 annual fee for life.
Qantas American Express Discovery Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$0 p.a.
Take advantage of purchase protection repairs or replacements on eligible items if they are accidentally broken or stolen within 90 days of purchase.
Westpac Low Rate Card - Online Only Balance Transfer Offer
13.49% p.a.
0% p.a. for 24 months with 2% balance transfer fee
$59 p.a.
Take advantage of 0% p.a. for 24 months on balance transfers with a 2% balance transfer fee when you apply online by 31 January 2018.
HSBC Platinum Credit Card
19.99% p.a.
0% p.a. for 22 months with 2% balance transfer fee
$129 p.a.
The HSBC Platinum Credit Card offers purchase protection cover for eligible purchases.
American Express Velocity Escape Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$0 p.a.
Earn uncapped Velocity Points on purchases, pay $0 annual fee for life and take advantage of a 0% p.a. for 12 months balance transfer offer.
American Express Platinum Edge Credit Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$195 p.a.
Receive a yearly $200 Travel Credit and complimentary domestic and international travel insurance. Plus, a 12 month balance transfer offer.
ANZ Frequent Flyer Platinum
19.99% p.a.
$0 p.a. annual fee for the first year ($295 p.a. thereafter)
Receive 65,000 bonus Qantas Points when you spend $2,500 on eligible purchases within the first 3 months. Plus, a $0 annual fee for the first year.
Bankwest Breeze Platinum Mastercard
12.99% p.a.
0% p.a. for 24 months with 2% balance transfer fee
$99 p.a.
Receive a 0% p.a. interest rate on balance transfers for 24 months, complimentary travel insurance and 0% foreign transaction fees.
HSBC Platinum Qantas Credit Card
19.99% p.a.
0% p.a. for 12 months
$199 p.a.
Receive 60,000 bonus Qantas Points when you spend $3,000 within 3 months of card approval, plus enjoy a complimentary travel insurance.
Virgin Australia Velocity Flyer Card - Balance Transfer Offer
20.74% p.a.
0% p.a. for 18 months
$64 p.a. annual fee for the first year ($129 p.a. thereafter)
Save with 0% p.a. for 18 months on balance transfers, earn 3 bonus Velocity Points per $1 for the first 3 months and get a yearly $129 Gift Voucher.
ANZ Platinum Credit Card - Exclusive Offer
0% p.a. for 3 months (reverts to 19.74% p.a.)
0% p.a. for 12 months
$0 p.a. annual fee for the first year ($87 p.a. thereafter)
Exclusive to finder, get 0% p.a. interest on purchases for 3 months and 0% p.a. on balance transfers for 12 months. Ends 17 December 2017.
NAB Low Fee Card
19.74% p.a.
0% p.a. for 16 months with 2% balance transfer fee
$30 p.a.
Receive complimentary purchase protection insurance, a 16 month balance transfer offer and special offers from Visa Entertainment.
Westpac 55 Day Platinum Credit Card
19.84% p.a.
0% p.a. for 20 months with 2% balance transfer fee
$0 p.a. annual fee for the first year ($90 p.a. thereafter)
Receive a 20 month balance transfer offer, up to 55 days interest-free on purchases, a platinum concierge service and a $0 first year annual fee.
Citi Clear Platinum
14.99% p.a.
$99 p.a.
Receive complimentary insurance covers free wine when you dine with the Citibank Dining Program.
Citi Signature Credit Card
20.99% p.a.
0% p.a. for 15 months with 1% balance transfer fee
$199 p.a. annual fee for the first year ($395 p.a. thereafter)
Complimentary international travel insurance, transit accident insurance, interstate flight inconvenience insurance, purchase cover insurance and extended warranty insurance.
Emirates Citi World Mastercard
20.99% p.a.
0% p.a. for 9 months
$149 p.a. annual fee for the first year ($299 p.a. thereafter)
Receive protection through guaranteed pricing scheme, purchase cover insurance, and extended warranty insurance.
Qantas American Express Premium Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$249 p.a.
Enjoy 30,000 bonus Qantas Points, 2 complimentary Qantas Club lounge invitations per year and the protection of complimentary insurance covers.
American Express Platinum Business Card
$1,500 p.a.
Enjoy 120,000 bonus points, a platinum business concierge, complimentary Virgin Lounge access, worldwide travel insurance and hotel benefits.
ANZ First Student Card
19.74% p.a.
$0 p.a. annual fee for the first year ($30 p.a. thereafter)
An ideal, low limit credit card for full-time tertiary students with up to 44 days interest-free on purchases and a $0 annual fee for the first year.
ANZ Low Rate Platinum
11.49% p.a.
$99 p.a.
Get $250 back to your new ANZ Low Rate Platinum when you spend $500 on eligible purchases within the first 60 days from card approval.
American Express Velocity Platinum Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$375 p.a.
Receive 50,000 bonus Velocity Points, a complimentary Virgin Australia return Economy domestic flight each anniversary year, plus, 2 lounge passes.
NAB Velocity Rewards Premium Card
19.99% p.a.
4.99% p.a. for 6 months
$150 p.a.
Offers up to 0.66 Velocity Points per $1 spent on purchases, combined with complimentary insurance covers and a concierge service.
Qantas American Express Ultimate Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$450 p.a.
Take advantage of 55,000 bonus Qantas Points, a $450 Qantas Travel Credit each year and 2 yearly complimentary Qantas Club lounge invitations.
Virgin Australia Velocity Flyer Card - 0% Interest Offer
0% p.a. for 14 months (reverts to 20.74% p.a.)
0% p.a. for 6 months
$129 p.a.
Save with 0% p.a. on purchases for 14 months and 0% p.a. on balance transfers for 6 months. Plus, earn up to 0.66 Velocity Points per $1 spent.
Virgin Australia Velocity High Flyer Card - 80k Bonus Points offer
20.74% p.a.
0% p.a. for 15 months
$289 p.a.
Take off sooner with up to 80,000 bonus Velocity Points and earn up to 1 Velocity Point per $1 spent. Plus, complimentary travel insurance.
ANZ Rewards Travel Adventures card
20.24% p.a.
$225 p.a.
Receive 40,000 bonus Velocity Points (when you meet the spend criteria), 2 yearly Virgin Australia lounge passes, plus enjoy paying a $0 overseas transaction fee on purchases.
American Express Platinum Card
$1,200 p.a.
Receive an annual $300 Platinum Travel Credit, 80,000 bonus Membership Rewards points and access to more than 1,100 VIP lounges.
Bankwest More World Mastercard
19.99% p.a.
0% p.a. for 6 months with 1% balance transfer fee
$270 p.a.
Earn 115,000 bonus points when you meet the spend requirement, receive complimentary travel insurance and a LoungeKey membership.
Bankwest Qantas World Mastercard
20.49% p.a.
2.99% p.a. for 9 months
$270 p.a.
Earn uncapped Qantas Points per $1 spent on eligible purchases, pay 0% foreign transaction fees and receive complimentary travel insurance.
Bank of Melbourne Amplify Platinum
19.49% p.a.
$99 p.a.
Receive 60,000 bonus Amplify or Qantas Points when you spend $3,000 within 90 days and earn up to 1.00 Amplify point per $1 spent.
Bank of Melbourne Amplify Signature
19.49% p.a.
$279 p.a.
Receive 90,000 bonus Amplify or Qantas Points when you spend $5,000 within 90 days and earn up to 1.50 Amplify points per $1 spent.
BankSA Vertigo Platinum
12.74% p.a.
0% p.a. for 24 months with 1% balance transfer fee
$99 p.a.
Offers a long-term balance transfer, low ongoing purchase rate, complimentary travel insurance and access to a 24/7 personal concierge service.
Bank of Melbourne Vertigo Platinum
12.74% p.a.
0% p.a. for 24 months with 1% balance transfer fee
$99 p.a.
Offers a long-term balance transfer, low ongoing purchase rate, complimentary travel insurance and access to a 24/7 personal concierge service.
St.George Amplify Platinum
19.49% p.a.
$99 p.a.
Receive 60,000 bonus Amplify or Qantas Points when you spend $3,000 within 90 days and earn up to 1.00 Amplify point per $1 spent.
St.George Amplify Signature
19.49% p.a.
$279 p.a.
Receive 90,000 bonus Amplify or Qantas Points when you spend $5,000 within 90 days and earn up to 1.50 Amplify points per $1 spent.
Citi Rewards Platinum Credit Card
20.99% p.a.
0% p.a. for 24 months with 1.5% balance transfer fee
$49 p.a. annual fee for the first year ($149 p.a. thereafter)
Earn reward Points per $1 spent, take advantage of a 0% p.a. for 24 month balance transfer offer, plus a complimentary international travel insurance.
Citi Simplicity Card
19.99% p.a.
0% p.a. for 15 months with 1.5% balance transfer fee
$0 p.a.
Earn 5% cashback on eligible purchases (capped at $50 per month) for the first 90 days from card approval. Plus, a 15 month balance transfer offer.
Citi Rewards Classic Credit Card
20.99% p.a.
0% p.a. for 15 months with 1.5% balance transfer fee
$49 p.a. annual fee for the first year ($99 p.a. thereafter)
Receive 1 point per $1 spent on eligible Domestic Spend, membership to the Citibank Dining Program and a 15 month balance transfer offer.
ANZ First Visa Credit Card
19.74% p.a.
0% p.a. for 16 months with 2% balance transfer fee
$30 p.a.
Get up to 16 months interest-free on balance transfers and save with a low $30 annual fee. Plus, up to 44 days interest-free on purchases.
NAB Low Rate Platinum Card
0% p.a. for 9 months (reverts to 13.99% p.a.)
4.99% p.a. for 6 months
$100 p.a.
Enjoy 0% p.a. interest on purchases for 9 months and the protection of 7 complimentary insurances including overseas travel insurance.
NAB Velocity Rewards Card
19.99% p.a.
4.99% p.a. for 6 months
$95 p.a.
This Visa card offers 0.5 Velocity Points per $1 spent on eligible purchases, up to 44 interest-free days on purchases and Visa Entertainment offers.
NAB Qantas Rewards Premium Card
19.99% p.a.
4.99% p.a. for 6 months
$250 p.a.
Protection for new items purchased with this card, if the items are stolen or accidentally damaged within 90 days of the date of purchase. Plus a low interest rate on balance transfers for 6 months.
NAB Qantas Rewards Card
19.99% p.a.
4.99% p.a. for 6 months
$95 p.a.
Enjoy purchase protection as a complimentary service with the NAB Qantas Rewards credit card. Plus take advantage of a low balance transfer rate.
NAB Rewards Classic Card
19.99% p.a.
0% p.a. for 6 months
$95 p.a.
Receive 0.75 NAB Rewards Points per $1 spent and complimentary purchase protection insurance. Plus, a 0% p.a. for 6 months balance transfer offer.
NAB Rewards Platinum Card
19.99% p.a.
0% p.a. for 6 months
$195 p.a.
Collect 60,000 bonus points when you spend $2,500 within 60 days of account opening. Plus, receive complimentary travel and purchase insurances.
28 Degrees Platinum Mastercard
21.99% p.a.
4.99% p.a. for 6 months
$0 p.a.
Designed for travel, benefit from 0% foreign transaction fees on purchases, a $0 annual fee for life and a personal concierge service.
Woolworths Everyday Platinum Credit Card
19.99% p.a.
0% p.a. for 14 months
$0 p.a. annual fee for the first year ($49 p.a. thereafter)
Receive a $50 eGift Card when you meet the offer criteria, a 0% p.a. for 14 month balance transfer offer and a $0 first year annual fee.

Compare up to 4 providers

Other types of complimentary credit card purchase insurance

Some credit cards may also provide the following complimentary insurance covers for your purchases:

  • Extended warranty cover. This extends the warranty cover for items purchased using your card, meaning that you can enjoy extended warranty protection beyond the manufacturer’s warranty period.
  • Price guarantee schemes. This offers price protection so that you may be able to claim the price difference for an item purchased on your card if you find it in another store nearby at a lower price within a certain period of time.
  • Refund protection insurance. Refund protection ensures that you can still get a refund on items purchased using your card even if the merchant refuses to process a refund.

Other factors to consider when comparing credit cards with purchase protection insurance. man-card-laptop

When considering purchase protection insurance, here are some other factors you should keep in mind:

  • Claim requirements. Time limits may be imposed forcing you to make your claim within a certain number of days after losing or accidentally damaging a new item. Certain documents may be mandatory as well, so you may need to make a police report immediately in order to make a claim for your stolen or missing item.
  • Claim limits. Most policies have an annual cap on purchase protection claims as well as a cap on each individual claim. You may wish to look into protection for international purchases if you travel or shop online a lot.
  • Annual fee. A credit card that offers complimentary extras such as purchase protection is likely to have a higher annual fee than a no-frills card. This may outweigh the benefits of complimentary extras if you rarely or never use them.
  • Purchase rate. When considering any credit card, interest rates are very important, especially if you are someone who carries a card balance. You may find that cards with complimentary freebies often charge higher rates.
  • Rewards. If earning rewards with your card is important to you, you should consider factors such as the points earn rate and rewards redemption program.
  • Cash advance rate and fee. If you withdraw money using your credit card or use your card for cash equivalent transactions, including gift or shopping vouchers and gambling, you may be charged extra fees.
  • Other complimentary extras. With increased competition among cards, the list of complimentary extras grows longer all the time. You should seek out perks that you’ll actually use and enjoy, since you’re indirectly paying for them in the card’s annual fee.

Compared to travel-specific perks like airport lounge access and complimentary travel insurance, purchase protection insurance is something that most people can enjoy on a day-to-day basis. When deciding if it’s something that you actually need, it’s important to consider the costs of the card and whether this feature will be worth it in the long term.

Pictures: Shutterstock.

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Amy Bradney-George

Amy is a Senior Writer at finder.com.au with more than 10 years experience covering credit cards, personal finance and various lifestyle topics. When she’s not sharing her knowledge on money matters, Amy spends her time as an actress.

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4 Responses

  1. Default Gravatar
    LeonieOctober 25, 2016

    I live in Sydney, Australia. I purchased Japanese hotel accommodation via an online travel company last April. Our holiday had now begun but when I arrived at the hotel today I was told that the company had gone broke and had not paid the hotel and therefore my money was gone. Travel insurance told me that they would not pay am now wondering if I have any protection from visa as I paid on Visa platinum card. Accommodation cost about $1000 which I can’t afford to lose!!

    • Staff
      MayOctober 28, 2016Staff

      Hi Leonie,

      Thanks for getting in touch and I’m sorry to hear about your current situation.

      It would also be best if you get in touch with your card issuer so they may be able to help you resolve the problem. Though please note that the protection benefit for credit cards will depend on the type of card you have.

      Cheers,
      May

  2. Default Gravatar
    JoanneSeptember 8, 2015

    I paid for an item 8 months ago on my HSBC Platinum card but as yet it has not been supplied. Can my card’s purchase protection assist?

    • Staff
      SallySeptember 9, 2015Staff

      Hi Joanne,

      Thanks for your inquiry.

      There are a few factors that may affect your eligibility. As such, it’s ideal to check the terms and conditions or contact HSBC directly to confirm what you’re covered under.

      Please see page 50 of the terms and conditions PDF I’ve sent to your email together with HSBC’s contact number.

      I hope this helps.

      Thanks,

      Sally

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