Extended warranty could come in handy should you have a problem with your purchases as it is a way to get extra coverage for them. Compare credit cards with extended warranty.
What is extended warranty?
Extended warranty insurance is a benefit to eligible credit cardholders and extends the cover of the manufacturer's warranty on personal goods purchased with that particular credit card. The cover essentially extends the manufacturer's expressed Australian warranty on personal goods purchase with the eligible credit card. The insurance doesn't affect the rights of the cardholder against a manufacturer in the event if a law is violated under Australian legislation.
What are the types of extended warranty?
Generally, there is only one type of extended warranty but its the period of extended warranty that differs. The extended warranty period will match the period of the Australian warranty period, with a maximum of 12 months and doesn't apply if the existing Australian warranty is in excess of 5 years. So if you had bought an item that already had a 5 year warranty, you would not be eligible for extended warranty insurance.
Australian warranty period (when you buy the item)
You'll be covered for an additional:
1 to 5 years
Cover 5 years
How does extended warranty work?
When you purchase an item, there may be an Australian warranty already in place for the purchase. This is the manufacturer's expressed written warranty, that is applicable and able to be fulfilled within Australia and needs to be officially registered with the manufacturer. The extended warranty from your credit card will take place after the Australian warranty period ends, given that it is less than 5 years. Only items with a manufacturer's unique identification number will be covered under this particular insurance. If you want to make claim for the extended warranty insurance, usually an excess will apply.
The following also needs to apply to be eligible:
- You must purchase the item with your credit card in order to get the benefit.
- Some credit card companies require you to register your item with them in order to get the extended warranty coverage.
- If you need to use the extended warranty, you will have to show proof of purchase and your credit card receipt proving you used your card to pay for the item.
- If you purchased any additional coverage, you will have to provide proof of that as well as the manufacturers warranty.
- If you cancel the card you used for the purchase, the extended warranty will also be voided.
- In order to file a claim, you will have to meet all of the above listed terms and fill out a claims form that your credit card company will provide.
How to compare extended warranty
- Excess - You will most likely need to pay a certain amount for each extended warranty insurance claim. This isn't an additional fee charged by the insurer at the time of making a claim, but a portion of the loss for which the credit card holder has incurred.
- Claim process - Insurers all have similar processes as to how you can claim extended warranty insurance, but some may be more complicated than others. When you apply for your credit card you can enquire with the provider about the steps involved as they should have an idea.
- Limits - The liabilities for claims usually have a limit on the amount you claim within a year, or it has to match the purchase price of the personal goods that were purchased with your credit card.
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Eligibility criteria, terms and conditions, fees and charges apply
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- 20.24% p.a. on purchases
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- Minimum income requirement of $50,000 p.a.
Compare Credit Cards that include Extended Warranty on Purchases
Pros and cons of extended warranty
- Peace of mind - Nowadays you don't have to worry about buying a separate warranty if you are planning to pay for it with one of your credit cards.
- Easy to access - Many rewards and premium credit cards now come with complimentary extended warranty on eligible purchases. Many retail rewards credit cards come with this kind of offer.
- Only applies to Australian purchases - In most cases, the warranty will only apply when you buy an Australian manufactured product. This means that if you try to shop overseas or online the warranty won't apply.
- Fine print - Be sure to check with your lender to see if the product is covered under the terms and conditions. But if the purchase is eligible, you will get cover for up to 12 months after the purchase.
What to avoid with extended warranty
- Not knowing the terms and conditions - It is important for you to know when and where your extended warranty applies, and if you have any questions you should go directly to your lender to sort any doubts on its usage. Take a look at the following highlights which will lead you through the way of using the extended warranty.